Procurement strategy leveraging economies of scale and the advantage of Coca-Cola SystemEach ofglobal suppliersSuppliersInformation sharingNegotiation and determination of general framework for terms of purchaseDetermination of and conditionsdetailed specifications Purchasing of undiluted solutionGlobal procurementJoint procurementin JapanBulk purchasing ofCEPG, the global procurement the Coca-Cola Systemnetwork of CCBJHInformation sharing/coordinationInformation sharing/coordinationCoca-Cola (Japan) Company*1 SAP Ariba: A cloud-based B2B transaction system*2 An abbreviation for robotic process automation. Software robot technology that automatically performs routine tasks in place of humans*3 A global procurement network of the Coca-Cola System aiming to optimize costs and qualities by leveraging its global procurement scale*4 An initiative to centralize procurement at CCBJH, including negotiations with suppliers, to source items that are common *5 A method of increasing operational efficiency by removing waste and reducing variationrequirements of domestic bottlers, such as sugar and other raw materials, PET bottles and other supplies, and vending machines.We are leveraging RPA*2 to improve operational efficiency. By integrating, redefining, and standardizing our processes, we raw materials, supplies, etc.are building a system that enables us to focus our resources on the core operation of strategic procurement.In promoting strategic procurement, we are actively working to create new opportunities to provide value by utilizing business intelligence (BI) tools to analyze vast amounts of expenditure data from multiple perspectives. This approach allows us to identify latent procurement needs and opportunities to further reduce costs.which will include training and leveling up the skills of our team and preparing the next generation of leaders.We actively work to improve our capabilities, and one such specific effort is to develop human resources that can increase the organization’s productivity and create value through Operational Excellence (OE) activities using Lean Six Sigma*5. We will also roll out training to enhance procurement skills for every position and division linked to the company-wide training plan.Bulk purchasing of raw materials,supplies, etc.Hokkaido Coca-Cola Bottling Co., Ltd.Michinoku Coca-Cola Bottling Co., Ltd.Payment of service chargeHokuriku Coca-Cola Bottling Co., Ltd.Okinawa Coca-Cola Bottling Co., Ltd.34Leveraging digital technology to identify latent needsAs part of our efforts to address the labor shortage due to the declining birthrate and aging population and reforming work styles, we are promoting DX in the area of procurement. The introduction of SAP Ariba*1 as an operational tool for purchasing indirect materials is an example of this. We are promoting higher operational quality and efficiency by standardizing the procurement process.Coordinating with Cross Enterprise Procurement Group (CEPG) and overseas bottlersto ensure efficient global procurementWe are committed to transforming the Procurement Division into a world-class procurement organization. We work to achieve this by sharing information and best practices with CEPG*3, the global procurement network of the Coca-Cola System, and collaborating more closely than ever before with overseas bottlers. We will also boost coordination with domestic bottlers to implement joint procurement*4. We are developing a program to improve procurement capabilities,
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