AI-Driven Insights for Procurement Optimization

Summary:

The company leveraged AI-driven insights to optimize its procurement processes resulting in over USD 40 million in cost savings and cost avoidance, achieving 60% catalog coverage across indirect procurement categories.

Client: 

Coca-Cola Europacific Partners (CCEP) is a global beverage company serving more than 600 million customers across 29 markets

Problem Statement: 

CCEP sought to streamline procurement, reduce costs, and enhance supplier collaboration.

CCEP articulated its vision centered on AI-powered analytics to drive business insights and value. The organisation wanted to create tools that allow teams to make smart sourcing decisions, find new sourcing opportunities, both strategic and tactical, and to manage and nurture supplier relationships.

Results: 

• Achieved over USD 40 million in combined cost savings and avoidance.
• Expanded catalog coverage to 60% of indirect procurement categories.
• Enhanced decision-making through AI-powered analytics, reducing time and effort in procurement processes.

AI Solution Overview:

Leveraging the AI-driven IBM Procurement Analytics as a Service and the extensive expertise of IBM Consulting, Coca-Cola Europacific Partners (CCEP) has gained deeper insights into its procurement data. These strategic insights have enabled CCEP to reach new levels of procurement optimization, delivering significant business value.

With a much more detailed and comprehensive view of its spend data, the solution now classifies and analyzes over 98% of both direct and indirect spend. This capability allows CCEP to identify fresh opportunities for cost savings and value generation across its procurement categories.

CCEP is further advancing its AI initiatives by piloting a new solution built on the IBM watsonx™ AI and data platform. IBM watsonx™ is specifically designed to help organizations fully harness the power of artificial intelligence in their operations. By combining state-of-the-art AI features with a robust data management framework, watsonx enables faster innovation, improved decision-making, and enhanced business outcomes.

The platform offers a wide array of pre-trained and foundational AI models that can be tailored to specific business requirements, significantly reducing development time and accelerating implementation. Through these innovations, CCEP is reinforcing its commitment to leveraging AI to create greater efficiency and value in its operations.

References: 

1. Procurement optimization built on AI-driven insights. https://www.ibm.com/case-studies/coca-cola-europacific-partners?mhsrc=ibmsearch_a&mhq=case%20study%20procurement

Industry: Consumer Packaged Goods and Procurement

Vendor: IBM

Client: Coca-Cola Europacific Partners