Five lessons on achieving supply chain optimization from some of the world's largest and most successful companies.
Optimizing supply chains is crucial for success, but there’s more than one way to skin a cat! While some companies choose to automate their way to cost efficiencies, others are focusing on agility, innovation, relationships, and (increasingly) AI.
Lessons in Supply Chain Optimization
In this article, we explore five powerful lessons in supply chain optimization drawn from industry leaders. From Coca-Cola’s agile packaging strategies in response to tariffs, to Microsoft’s path to cutting emissions, we’ll delve into how these companies leverage innovation, automation, artificial intelligence, and strong relationships to stay ahead of the curve.
Whether you're looking to refine your own supply chain processes or simply gain insights from the best, these examples offer valuable takeaways for any organization.
1. Agility
Fans of America’s most popular beverage were concerned that the Trump administration’s 25% tariff on aluminum could raise the price of a can of coke. Usually, the Coca-Cola Company packages almost 50% of its drinks in plastic bottles, 25% in aluminum cans, and the remaining 25% in glass bottles.
CEO James Quincey told shareholders that, in response to the 2025 aluminum tariffs, the company will move away from using aluminum and increase production of other packaging (namely plastic bottles) to “ensure affordability and meet consumer demand.” It's a win for customers (but not for the environment).
2. Innovation
Cutting emissions in logistics is a priority for Microsoft, which aims for carbon negativity by 2030 and plans to remove all historical carbon emissions by 2050. With two supply chains - one for Devices like Surface and Xbox, and another for Cloud hardware in over 300 data centers - Microsoft faced challenges due to limited emissions data. By shifting from rough supplier estimates to operational data for more accurate emissions tracking, significant insights emerged.
As a result, Microsoft cut absolute carbon emissions by 95K metric tons, a 28% year-over-year decrease - equivalent to a gas vehicle driving 245 million miles. Key strategies included shifting cargo from air to ocean, saving nearly 99K mtCO2e, and transitioning to electric vehicles, which reduced emissions by 665 mtCO2e.
Agreements for sustainable aviation fuel and converting several distribution facilities to solar power, including three net-zero facilities, further advanced sustainability goals. These efforts earned Microsoft recognition as a finalist in the 2024 Gartner Power of the Profession awards for Social Impact of the Year.
3. Automation
DHL has ramped up its use of AMRs (Autonomous Mobile Robots) in its warehouses around the globe and has seen an 180% increase in per-hour units picked through their deployment. AMRs typically achieve accuracy rates of 99.99%. DHL has four different types of robots at work:
- EffiBots (“follow-me” robots that follow around human pickers)
- AvidBots Neo (floor-scrubbing robots)
- TMBots (a robotic sorter capable of sorting over 1,000 small parcels per hour), and
- LocusBots, which recently passed 500 million picks.
4. Artificial Intelligence (AI)
AI is shaking up the customs clearance game, making things smoother for companies beyond just filling out paperwork.
KlearNow.AI has rolled out a platform called Customs Engine that’s all about helping importers, customs brokers, and freight forwarders get their goods through customs and ports quickly and compliantly.
Customs Engine is built on five years of data from AI and machine learning, and can create detailed datasets for customs submissions. With its automated data extraction and document digitization, the platform cuts down on manual entries and the mistakes that come with them. Plus, it automatically generates Importer Security Filings and sends them straight to customs authorities, making the whole process a breeze.
5. Relationships
There are several reasons why Toyota's gold-class Supplier Relationship Management (SRM) program is recognized for its effectiveness. First, Toyota has built long-term, collaborative relationships with suppliers, particularly key Japanese partners, fostering trust and stability. They treat nearly all suppliers as strategic, giving extra attention to those they work closely with on research and development.
Toyota’s SRM approach combines “hard” tools like KPIs with softer methods such as regular executive meetings, ensuring both parties benefit from the partnership. Innovation is a big focus—Toyota invites suppliers to showcase new ideas, encouraging fresh solutions while maintaining high quality.
Finally, Toyota shares benefits fairly, usually splitting savings 50/50 with suppliers, which keeps them motivated to innovate. Open communication is key; even tough conversations are handled honestly to maintain trust. Even during challenges like economic downturns, Toyota stays committed to supplier relationships, ensuring clear expectations and preparing for future projects.
Getting Help with Supply Chain Optimization
At Una, we know all about the power of supply chain efficiency. Contact us today to learn how we can help identify areas in your supply chain that could benefit from optimization and leverage the power of bulk purchasing to help you save on the goods and services your business needs.
