Examples of Supplier Innovation
PROCUREMENT STRATEGY
Examples of Supplier Innovation
The Coke Bottle
“ In about 1915 , Coca Cola needed to redesign their bottle . The standard straightsided bottle wasn ’ t distinctive enough . It was becoming easily confused with ‘ copycat ’ brands . Coca‐Cola ran a contest : Glass manufacturers were approached to come up with a unique bottle design . The Root Glass Company of Terre Haute , Indiana , designed the famous contour shape . If this supplier had been unhappy , maybe this innovation would have gone to a competitor instead . 100 Billion bottles later , it ’ s still a good design . And coke only got it because they had got innovation from a supplier .”
Ford ’ s Window Trim Competition When Ford , the automobile behemoth , launched a project to reduce their vehicle window trims ’ production cost , executives decided to turn to the suppliers for innovative new solutions . It turned out to be an ingenious move . Ford ’ s suppliers created a whole new resin that streamlined the manufacturing process and took 19,200 miles off the companies logistical trucking , resulting in a cut of 2,700 gallons of diesel and 60,000 pounds of carbon dioxide . This innovation saved the company money and positively affected the environment – a plus for the wallet and the global sustainability drive .
Walmart ’ s ‘ Get on the Shelf ’ Ever heard of Walmart ’ s ‘ Get on the Shelf ’ competition ? It went viral almost a decade ago and offers inventors an opportunity to both get noticed and potentially sell their products on Walmart ’ s website and in selected stores . All the entrants had to do was submit a video of their product for a panel of judges at the corporate end , and the winner would reap the rewards . As Alex Short , Founder of Old St Labs , states : “ Get on the Shelf is a shining example of how supplier innovation can be mutually beneficial for the supplier and the buyer : Walmart are able to tap into new ideas and processes from their supply base , while the supplier can road-test their ideas in a secure environment , with the potential for great success .”
50 April 2021