Superior Supplier Management
Supplier Guiding Principles (SGP)
Supplier Guiding Principles (SGP) Audits for CCI Plants managed by TCCC
Audits were carried out by an independent auditing firm in 2020 to determine the degree that our operations comply with the CCI Human Rights Policy and TCCC Supplier Guiding Principles (SGP).
9 CCI plants in Kazakhstan, Kyrgyzstan, Pakistan, Turkey and Jordan have successfully passed these inspections.
We received an A score in the Supplier Participation Rating in CDP 2021 results.
SGP Audits at CCI Factories
Multan, Gujranwala, Lahore, Rahim Yar Khan and Karachi Plants from CCI Pakistan, Mersin Plant from CCI Turkey, Madaba Plant from CCI Jordan, Bishkek Plant from CCI Kyrgyzstan received "GREEN" results from their inspections.
We are constantly in contact with our suppliers and carry out audits and proactive actions to ensure they comply with our principles.
Our suppliers receive a copy of our SGP at the beginning of the business relationship and they are expected to pass these principles on to their stakeholders, in particular, their employees. We attach the SGP Policy to our supplier contracts when applicable, with the expectation that they will develop and implement appropriate internal business processes to guarantee their compliance with the SGP requirements. Supplier audits are conducted by TCCC and CCI’s trained personnel internally as well as by third parties. For our direct material and cold drink equipment suppliers, it is obligatory to undergo SGP audit and comply with SGP standards before signing contracts.
Third-party audits include confidential interviews both with employees and on-site contract workers. A supplier who fails to meet any aspect of the SGP requirements is expected to implementcorrective actions. If a supplier fails to adhere to our principles, sanctions that include termination of the contract are applicable. The calibration of the SGP score was reverted to existing model in 2019 encompassing Raw Materials, Primary Packaging & Co-packers. With the revised logic, we were able to achieve 89% despite the expansion of supply base. For CCI's ingredient and primary packaging suppliers, we reached 85% in 2021. As a result of the SGP audit, a remediation action plan that covers specific matters such as working hours (especially night shifts), rest day violation, overtime and health and safety, were sent to the relevant suppliers and supplementary audits were organized. In the last three years, TCCC audited all of CCI’s ingredient and packaging suppliers.
Principles Of Sustainable Agriculture (PSA)
Sourcing of CCI’s raw ingredients accounts for a large portion of our economic, social and environmental footprint. For CCI, sustainable sourcing is purchasing ingredients from farm locations and suppliers that meet TCCC-approved standards. Sustainable agriculture is critical for us to meet the expectations of our consumers, customers and other stakeholders and to enable the continuous growth of our business.
The Coca-Cola Company is addressing the challenges of availability in agriculture, quality and safety also addressing the improvement of the well-being of farmingcommunities. TCCC set its target on sustainably sourcing key agricultural ingredients by 2020 and developed Principles of Sustainable Agriculture (PSA). TCCC’s approach to sustainable agriculture is founded on these principles that aims to assure responsible management in farming, protecting the environment, upholding human and workplace rights, and so contributing to build more sustainable communities. Compliance with the PSA is verified in accordance with Bonsucro, the Rainforest Alliance, the Sustainable Agriculture Initiative Platform (SAI) and the Fairtrade International License Authority or an equivalent international third party standards.
TCCC Principles of Sustainable Agriculture (Please click on the link fordetails)
HTTPS://WWW.COCA-COLACOMPANY.COM/POLICIES-AND-PRACTICES/ SUSTAINABLE-AGRICULTURAL- GUIDING-PRINCIPLES
Workplace and Human Rights
- Freedom of association and collective bargaining
- Child labor ban
- Elimination of discrimination
- Work hours and wages
- Safe and healthy workplaces
- Community rights and traditional rights
Environment
- Water management
- Energy management and climate protection
- Conservation of natural habitats and ecosystems
- Soil management
- Protection of crops
Farm Management Systems
- Harvest and post-harvest handling
- Identification, selection and management of reproductive material
- Management systems, record keeping and transparency
- Business integrity
Milestones in CCI Sustainable Sourcing Activities
2016
We carried out a feasibility study for sustainable sugar sourcing in Turkey
2019
We collaborated with farmers, sugar producers and international industry platforms such as SAIto disseminate PSA inTurkey and Pakistan.
In cooperation with FMCGand beverage companies, we support the sustainable beet production process to effectively understand and implement best practices for sustainable sugar beet production in Turkey.
2021
We are working with the industry to understand and effectively implement best practices for the sustainable production of sugar beets in Turkey.
We have also integrated the Supplier Score Card, a part of supplier management software, into the Ecovadis rating platform to assess our suppliers' corporate social responsibility and sustainability performance.
2017
We organized a seminar on the PSA compliance program for sweetener suppliers inTurkey.
Transport Management
Thanks to the Intercity Transport Planning Optimization Project, which provides increased truck productivity and route optimization within the scope of our Digital Products,
143.153 litres of fuel
savings was achieved.
Intercity Transportation Planning Optimization Project
Product shipments among dealers, key customers and CCI warehouses are planned manually. For this reason, the process continues in a completely person-dependent structure where vehicle efficiency opportunities are missed and planning decisions cannot be supported with continuous cost and customer service level information. In order to solve the problems experienced during transportation planning, the Intercity Transportation Planning Optimization Project was implemented in CCI Turkey on October 9, 2020.
Thanks to the transportation planning optimization algorithm, shipments started to be planned with increased automated processes using variables such as customer planning expectations, order priority and shipping cost. As a result, vehicle efficiency was maximized and more automated steps reduced person- dependent decision processes.
Benefits
- Increased truck productivity
- Reduction of transportation cost(estimated decrease of 0.5%)
- Reducing energy consumption withfewer trucks and optimal routessaves 143,153 liters of fuel (diesel)
- Reducing carbon footprint
- Improving productivity
In addition to our company, the project also provides benefits forcustomers, distributors, 3rd party logistics partners, drivers, transport planners/logistics team (employees) and the community.
For Turkey, which off ers a gain of approximately USD 92,000 andon a rising trend until the end of 2021, OTM Bulk Planning has been commissioned. A full-fl edged transportation management capability is currently underway to enable instant operational and financial traceability.
Digital Twin Product- Sanitization Process Twin
Standard quality procedures require sanitization of line system components during production in plants. The time allocated and performance of the sanitization process can cause prolonged production times, decrease in line usage rates, unnecessary useof resources with environmental impacts during the process.
Also, our sanitization processes did not provide an integrated traceability and analysis of problems and performance, and sufficient insight was not provided to determine losses, improvement opportunities and actions. For this reason, we launched the Digital Twin Product in October 2020 in order to produce digital solutions to the problems identified in the current situation. Within the scope of the study, we ensured that the data for each process was taken directly from the relevant machines and that the actual process status could be traced and analyzed on the basis of the entire CIP system, process system components, process steps and parameters. Thus, processperformance problems, production, time or environmental resource losses are identified, improvement opportunities can be specified and actions can be taken to regain the losses.
Generated Benefits
- Increase in uptime of productionline and sanitation process timeeff iciency
- Reduced energy consumption
- Reduced water consumption
- Reduced material (solutions) consumption
CIP systems enabled 277,000 Lt less solution usage and 27,030 kWh of electricity and 12,164 m3 of water savings when applied in Bursa plant only. It was also applied İzmir and Elazığ plants and similar outcomes are expected. The work created value for our company as well as the environment, employees and consumers. We will continue to create value with the addition of new competences such as real-time alarm, machine learning and preventive maintenance with end processing.
Annual CIP systems applied in Bursa factory provided:
277.000 Lt
less solution use
