DOSCMT - Tetra Pak

Digital Operations and Supply Chain Transformation
Indian Institute of Management, Kozhikode

Globalizing Indian Thought
Business Leadership
Class of 2024
Group Assignment:
“Tetra Pak - A Digitally Enabled Supply Chain as a Competitive
Advantage”
Prepared By Group - 4
Prabhat Suman (BL/04/031)

Rewati Bulusu (BL/04/039)
1) What were some of the factors that helped Tetra Pak transform
digitally?
 Commitment to Excellence and Innovation:

 Tetra Pak has a legacy of innovation and commitment to excellence, as
shown by its operations successes and the implementation of Total
Productive Maintenance in the 1990s.
 This foundation of continuous improvement and data-driven
approaches paved the way for its digital transformation journey.
 Adopting Industry 4.0 and Data Analytics:
 The company embraced a suite of digital innovations including cloud
computing, artificial intelligence, and predictive analytics, integrating
these technologies to combine physical and cyber worlds, thereby
achieving new capabilities.
 The company focused on connecting its global operations and
integrating data from various sources, including its customers and
suppliers, to optimize its supply chain and service offerings.
 The company's emphasis on data science and advanced analytics
allowed it to leverage vast amounts of operational data for efficiency,
quality improvement, and innovation.
 Leadership and Culture:
 Tetra Pak recognized the need for curious and visionary leaders to drive
digital transformation.
 The company sought to address fundamental questions vital to the
success of its digital transformation.
 Strategic Partnerships:
 The company partnered with technology leaders like Microsoft to
develop and implement solutions emerging from the digital
transformation, which helped in leveraging external expertise and
cutting-edge technologies.
 Centralized Strategy and Coordination:
 The establishment of a Digital Program Office and a Data Science Center
of Excellence helped Tetra Pak to coordinate digital initiatives, maintain
a consistent policy for project selection, and ensure coherence between
different initiatives.
 Employee Engagement and Participation:
 Tetra Pak involved its employees in the digital transformation process
through initiatives like Xamarin hackathons and Design Sprints,
fostering local input and participation.
 Focusing on Three Capability Pillars:
 The company identified three digital capability pillars - a connected
workforce, advanced analytics, and connected solutions - as essential for
creating a competitive advantage through digital technologies.
 Customer-Centric Solutions:
 Tetra Pak leveraged digital transformation to enhance customer
experiences and offer value-added services like outcome-based service
contracts and connected packages.
2) What were the best opportunities that Tetra Pak decided to pursue?
 Enhancing Quality and Performance: By leveraging the vast data potential of its
end-to-end supply chain, Tetra Pak can ensure superior quality, making this an
important driver for digital transformation.
 Outcome-Based Service Contracts: Transitioning to service contracts based on
measurable successful outcomes, such as improving the Operational Equipment
Efficiency of a filling line, rather than billing per technician hour or for spare
parts used.
 Reinventing the Package: In response to competition and the expanding
omnichannel distribution, Tetra Pak sees the package as a way to enhance
manufacturers’ marketing intelligence and consumer experience.
 Connected Workforce: Implementing mobile and wearable technology to
provide information at the fingertips of their workers, enhancing the efficiency
and responsiveness of their operations.
 Using technology to bridge gaps:
 Utilizing data to discover, interpret, and communicate meaningful
patterns, thereby driving better decision-making and innovation.
 Expanding the Advanced Planning System (APS) through an end-to-end
supply chain control tower that integrates internal and external data for
more informed production decisions.
 Participating in blockchain technology for product traceability, from
harvest to shelf, ensuring secure and immediate access to information
on the origins of food.
 Connecting all Tetra Pak packaging systems to better manage and drive
production efficiency across its global factories.
 Developing capabilities to use data not just for prediction but for making
automated decisions based on advanced analytics.
 Enhancing or creating new customer solutions by adding digital
capabilities to Tetra Pak’s products and services, such as connected
packages with QR codes providing valuable product information.
These opportunities represent a strategic roadmap for Tetra Pak, focusing on

leveraging digital technologies to improve quality, performance, customer
engagement, and operational efficiency. Each opportunity aligns with Tetra Pak’s
ambition of enhancing customer experiences and maintaining its competitive
advantage in the market.
3) How did Tetra Pak manage the risks associated with digital
transformation, including cybersecurity threats and the challenge
of adapting to rapidly evolving technologies?
 Establishment of a Digital Program Office:
 This office was set up with a mandate to coordinate all selected digital
pilots in collaboration with operational business units.
 It played a crucial role in maintaining a consistent policy for identifying
potential projects and selecting the ones to move forward on, ensuring
coherence between different initiatives and avoiding duplication.
 Partnership with Microsoft:
 Tetra Pak partnered with technology leader Microsoft to develop and
implement solutions emerging from digital transformation. This
partnership helped Tetra Pak in leveraging external expertise and
cutting-edge technologies.
 Data Science Center of Excellence (CoE):
 The CoE provided a centralized strategy for identifying and securing the
sources of all key data needed for Tetra Pak’s selected projects.
 It hired, trained, and deployed data scientists who could develop the
necessary advanced analytics algorithms.
 Employee Engagement and Participation:
 Tetra Pak involved its employees in the digital transformation process,
fostering local input and participation.
 This inclusive approach helped to garner support for various
digitalization/transformation initiatives.
 Focus on Predictive Maintenance and Process Control:
 Using advanced analytics from a range of sensors, Tetra Pak generated a
virtual copy (digital twin) of a customer’s production installation.
 This helped anticipate breakdowns or equipment failures before they
occurred, enabling more planned and controlled maintenance.
 Centralized Repository of Data:
 A centralized repository of data from external and internal sources
obtained from thousands of pieces of equipment allowed Tetra Pak to
consolidate potential learning from the data, improving predictive
algorithms.
 Supply Chain Control Tower and Logistics Blockchain:
 Tetra Pak extended its Advanced Planning System (APS) through a
supply chain control tower and participated in blockchain technology
for product traceability, enhancing security and immediacy of access to
information on the origins of food.

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Digital Operations and Supply Chain Transformation

Indian Institute of Management, Kozhikode

Prabhat Suman (BL/04/031)

 Commitment to Excellence and Innovation:

These opportunities represent a strategic roadmap for Tetra Pak, focusing on

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