COCA-COLA AMATIL: TRANSFORMING THE PNG SUPPLY CHAIN
COCA-COL 02
TRANSFORMI SUPPLY
LA AMATIL 03
ING THE PNG Y CHAIN w w w.c c a ma t il. com
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SIMON ROBINSON, HEAD OF SUPPLY CHAIN, PNG, DETAILS THE TRANSFORMATION THAT HAS RETURNED COCA-COLA AMATIL TO GROWTH IN THE COUNTRY
O
ne of the world’s major Coca-Cola bottling companies, Coca-Cola Amatil (CCA) serves the Oceania region, incor-
porating Australia, New Zealand, Indonesia, Fiji, Papua New Guinea (PNG) and Samoa. Simon Robinson is Head of Supply Chain in PNG, operating across production, planning, logistics, quality, safety, environment, engineering and capital pro04
jects, and previously served as National Logistics Manager in Indonesia. It’s an experience Robinson brought to his current role, where, with support from the Indonesian team and local suppliers, he has transformed the Supply Chain and returned CCA PNG to double digit growth. CCA has been operating in PNG for 28 years with a Supply Chain network consisting of two plants, five production lines, six distribution centres, 40 products and over 800 customers. Despite strong consumer demand and high market share, volume growth stalled primarily due to an inability to supply. Internal process issues across manufacturing efficiency, inventory accuracy, planning and logistics were affecting growth and the supply chain had become a growth inhibitor.
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To resolve these issues, the busi-
“Implementing daily stand up meetings,
ness implemented a back to basics
control boards and disciplined routines
operational excellence framework.
was an important part of the program.
Supported by a team of subject matter
Implementing controls around raw
experts from Indonesia, sponsored
materials ordering, demand planning,
by Gigy Philip, Supply Chain Director
procurement and inventory man-
(Indonesia) and led by Agus Salim,
agement, was important to stop the
Technical Manager (Indonesia), who
leakage of profit out of the business.”
focused on optimising the end-to-end
A major focus for the team was on
supply chain. “One issue was just
operational excellence within manufac-
around process and control, trying
turing. “There was a dedicated team
to give some structure to all of the
working on building local capability,
basic processes that are required to
optimising the equipment and upgrad-
run a supply chain,” says Robinson.
ing utilities within manufacturing to
CLICK TO WATCH : ‘COCA-COLA AMATIL BRAND VIDEO’ 07
get the lines operating at the speeds
guys could see, on a week-to-week
that they’re capable of running at,”
basis, the improvements that they were
says Robinson. “That was the real
making, and it wasn’t led by manage-
crux of the way we’ve changed the
ment, it was led by this small group
business around. In a business where,
of subject matter experts.” In the end,
historically, demand exceeds supply,
he says, “it was about collaboration.
every 1% improvement in operational
Each function had been working in
efficiency goes straight to volume and
a silo and we had poor relationships
revenue. Improving the efficiency of
with suppliers. The creation of that
those lines was the major driver of the
collaboration and interdependence of
growth in 2019.”
all the functions as well as improving
Robinson credits the introduction
partner supply agreements enabled
of the small team with injecting a new
a business turnaround. Now, almost
level of energy and enthusiasm. “The
12 months later, operational efficiency w w w.c c a ma t il. com
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C O C A - C O L A A M AT I L
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has improved around 15%, driving an
about regaining respect and pride in
even higher growth in volume and reve-
the business from both our suppliers
nue in a relatively flat economic market.”
and our people. The process also
Operations weren’t the only piece
involved reaching out to engage those
of the puzzle, however, with a focus on
who had previously been ignored. “We
culture also prevailing. “We did a lot of
started to conduct town-halls where
work around engagement in a bid to
we listened to the people in order to
bring people together,” says Robinson.
understand what they were trying to
“We had a philosophy of ‘one team,
tell us. We have groups in each region,
one goal, no limits’, and that became
at a local level, understanding what the
a theme which was able to galvanise
team and the people are telling us, and
everyone in the organisation. We were
then building that back into the initia-
obviously trying to achieve volume
tives that we’re doing in those regions.”
and revenue targets, but it was also
Aside from listening, Coca-Cola Amatil
also endeavoured to educate. “Another initiative originally from Indonesia was our Supply Chain Training Academy. It’s about building technical capability at the base operator level right up to supervisors, and up-skilling the entire workforce over a 12 to 18 month period.” In July 2019, PNG was awarded the
“ WE HAD A PHILOSOPHY OF ‘ONE TEAM, ONE GOAL, NO LIMITS’” — Simon Robinson, Head of Supply Chain, PNG, Coca-Cola Amatil
Supply Chain Best Practise Award at
E XE CU T I VE PRO FI LE
Simon Robinson Simon Robinson is an experienced Supply Chain Manager with more than 20 years’ experience across global FMCG businesses, including Coca Cola Amatil (CCA), Lion Nathan and Mitsubishi Motors. He has specific expertise across Sales and Operations Planning, Logistics and Route to Market, Business Transformation, Digital Supply Chain and Customer Service. Before joining the PNG business in 2019, he recently completed a major transformation of Route to Market and Logistics for the Coca Cola Amatil Indonesia business resulting in significant savings and customer service improvements. He is an advocate for digital supply chain transformation having initiated and managed several major SAP implementations across warehouse, transport and asset management systems, and sees technology as a core enabler for delivering both sustainable process change across large organisations and breakthrough improvements in efficiency and customer service.
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13 the Coca Cola Asian Supply Chain
system which tracks line performance
Conference, in recognition of the
by the hour,” explains Robinson. “If we
transformation achieved in the first half
should have made 2000 cases, but
of 2019, beating out over 20 others
we only made 1000, it will report the
including large bottlers from Japan,
issues behind that on an hourly basis
China and Australia.
and allow us to track and address it.”
Despite the challenges in a country
Quinsys, meanwhile, is about auditing
such as PNG, technology has had a
good manufacturing practice. “People
significant part to play in the transfor-
can go around the plant and put into
mation. Two complementary systems
the system any hazards or issues
originally introduced in Indonesia
that they find. It gives us a really good
were brought in, the Electronic Short
tool to manage our safety and quality.”
Interval Control (ESIC), and the Quality
Going live in January 2020 is a new
Information System (Quinsys). “ESIC
ERP, Microsoft Dynamics. Replacing
is a homegrown production control
existing legacy systems, Robinson is w w w.c c a ma t il. com
C O C A - C O L A A M AT I L
“ IT’S HARD TO DESCRIBE HOW IMPORTANT THE COCA-COLA BRAND IS TO THIS MARKET” — Simon Robinson, Head of Supply Chain, PNG, Coca-Cola Amatil
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SUPPLY CHAIN MANAGEMENT
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SUPPLY CHAIN SOLUTIONS
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confident that “the new ERP system
bills to the shipping companies,” says
will make sure that everybody is work-
Robinson. “Now we’ve put trackers
ing off of the same plan. By putting
on all the containers so that we know
in Microsoft Dynamics we’ll give our-
whether they have reached the desti-
selves an ERP system that will enable
nation, which also enables us to track
us to integrate all our data onto one
them all the way back.”
platform, manage process compliance and sustainable change.” There are also a few technologies
Another initiative was based around transforming relations with suppliers from transactional relationships to
with region-specific utility, particularly
business partners. “Good examples of
GPS trackers. “We essentially deliver
those improving supplier relationships
everything in shipping containers, but
are demonstrated by key suppliers such
after delivery, we tended to lose track
as Orora (cans) and BOC (Carbon
of them and end up paying detention
Dioxide), where we were able to move w w w.c c a ma t il. com
C O C A - C O L A A M AT I L
1960
Year founded (PNG)
22
Provinces reached in PNG
670
Number of employees
18
from regular supply issues, due to poor
consolidated our transport and ship-
planning and communication, to value
ping suppliers into companies such
added relationships where we are
as Bismark (a local vessel cargo sup-
proactively working together to drive
plier) and East West Transport which
shared growth and cost efficiency
is giving us better control, capacity
through design innovation and joint
and scaled efficiency to support our
long term planning,” says Robinson.
growth. On the production side we
“Labelmakers Group is our new label
engaged our plant suppliers such as
supplier, and brings innovative ecom-
Krones to provide technical and engi-
merce and design capabilities, such as
neering support to maximise output.
digital printing, which we are looking to
These relationships were all instrumen-
exploit for our 2020 consumer promo-
tal in turning around performance.”
tional programs. In logistics we have
“In summary, what we learnt is that
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frameworks like operational excel-
chain improvements and investments
lence can still drive total business
to ensure its supply matches the vora-
performance,” says Robinson. “They
cious demand in the region. “It’s hard
are proven methodologies, replica-
to describe how important the Coca-
ble and low cost. Engagement and
Cola brand is to this market. Right
capability building, internally and
now, we can sell every can of Coke
externally, with suppliers was key to
we can make for the foreseeable future
delivering sustainable improvement
– it’s just an amazingly popular PNG-
and using digitalisation and technology
made product.”
is important to deliver compliance and sustainability to the change.” As for the future, the company is planning its next phase of supply w w w.c c a ma t il. com
Coca-Cola Amatil Papua New Guinea T +675 472 1033 www.ccamatil.com