Coca Cola Letter
1st of December 2006
Coca-Cola Amatil had historically been with a Global TMC for 10 years. In 2005 CCA decided to go to market for a new TMC as the service levels with BTI had continually declined. This was due to several key personnel leaving the TMC, as well as the ‘current’ OBE being turned off. The replacement OBE fell well short of satisfactory service level standards.
Examples of the criteria CCA considered in nominating a new TMC as part of the tender process included: new booking technology, more sustainable levels of service, a high level of proactive account management and a transparent fee based financial model.
My role in this process as Procurement Category Manager was to manage the end-to-end process. I firstly needed to identify the appropriate suppliers in the market to participate in the tender. The ultimate objective was to find the best-fit TMC for CCA who would be able to drive the Technology changes and other expectations CCA had identified in moving forward (ie. open skies and a transparent financial partnership).
Several discussions with most of the better known TMC’s were had at that time. In the end a restricted group of 8 TMC’s were invited to participate in the tender process. CCA decided on 4 Global players, 4 Boutique TMC’s and 2 expense reduction management organisations. In the end 2 of the ‘smaller’ boutique TMC’s declined to participate due the size/scale of the tender. We also found the expense reduction management organisations were not able to deliver what was expected from the tender process and were subsequently delisted from the invited supplier list.
After assessing the responses from all the TMC’s it was obvious the Global TMC’s had all the polish and terminology when it came to reviewing their responses to the RFI, but not much passion or commitment from their management teams. While the Boutiques presented a “can do approach”.
It was identified that to fully engage the CCA customer base, I would need to setup a
Coca-Cola Amatil had historically been with a Global TMC for 10 years. In 2005 CCA decided to go to market for a new TMC as the service levels with BTI had continually declined. This was due to several key personnel leaving the TMC, as well as the ‘current’ OBE being turned off. The replacement OBE fell well short of satisfactory service level standards.
Examples of the criteria CCA considered in nominating a new TMC as part of the tender process included: new booking technology, more sustainable levels of service, a high level of proactive account management and a transparent fee based financial model.
My role in this process as Procurement Category Manager was to manage the end-to-end process. I firstly needed to identify the appropriate suppliers in the market to participate in the tender. The ultimate objective was to find the best-fit TMC for CCA who would be able to drive the Technology changes and other expectations CCA had identified in moving forward (ie. open skies and a transparent financial partnership).
Several discussions with most of the better known TMC’s were had at that time. In the end a restricted group of 8 TMC’s were invited to participate in the tender process. CCA decided on 4 Global players, 4 Boutique TMC’s and 2 expense reduction management organisations. In the end 2 of the ‘smaller’ boutique TMC’s declined to participate due the size/scale of the tender. We also found the expense reduction management organisations were not able to deliver what was expected from the tender process and were subsequently delisted from the invited supplier list.
After assessing the responses from all the TMC’s it was obvious the Global TMC’s had all the polish and terminology when it came to reviewing their responses to the RFI, but not much passion or commitment from their management teams. While the Boutiques presented a “can do approach”.
It was identified that to fully engage the CCA customer base, I would need to setup a