With AI at the core, Coca-Cola Bottlers Japan leans on Genpact to redesign operations

Coca-Cola Bottlers Japan Inc. (CCBJI), which manages more than a million vending machines across the country, is undertaking an effort to enhance uptime, optimize operational costs, and shift the equipment business from a cost center to a profit engine. In partnership with Genpact, this initiative centers around the EQ Smart Command Center, a digital hub that integrates AI, data-driven decision-making, and modernized field operations. This engagement provides a roadmap for beverage brands and retailers looking to modernize their supply chain and service networks.

Japan’s vending culture is unique, with Coca-Cola generating approximately half of its domestic sales through vending machines and automated dispensers. However, maintaining these machines has long been constrained by manual processes, limited visibility, and inefficient inventory management. The challenge was not just about improving efficiency but about shifting to a model where vending machines become revenue-generating assets with a structured service and supply chain strategy.

The journey began with Genpact conducting a detailed assessment of CCBJI’s equipment service operations. The findings highlighted fragmented field service processes, reactive parts inventory planning, and the absence of centralized operational intelligence. Changing this required establishing an AI-driven command center to integrate various service and supply chain elements into a cohesive, technology-driven framework.

Genpact established the EQ Smart Command Center Company to centralize planning and management operations using data, technology, and AI. This entity is the control point for optimizing equipment services and supply chain functions. To enhance field service speed and efficiency, Genpact is partnering with the EQ Service Operations Company, a joint venture between CCBJI and thinkrun Holdings Co., Ltd. The goal is to drive innovation and contribute to the sustainable, profitable growth of Coca-Cola Bottlers Japan Group.

Rather than simply optimizing existing processes, the EQ Smart Command Center was structured to centralize planning and execution, improve field service response times, increase efficiency, and support broader innovation. It consolidates management functions across the joint venture, enabling better coordination and visibility into equipment operations. This approach is particularly relevant in markets where operational complexity, service responsiveness, and cost control are critical factors.

The first phase of implementation (2022-2023) focused on modernizing field operations through digital tools, enhancing technician efficiency with AI-assisted repair recommendations, and introducing predictive analytics to optimize spare parts inventory. The deployment of a Control Tower provided real-time operational oversight, enabling CCBJI to transition from reactive maintenance to data-driven decision-making. These efforts resulted in measurable improvements, including approximately a 10% improvement in field service workforce productivity, a 15% reduction in spare parts inventory costs, and about a 5-percentage point gain in first-time fix rates.

With this foundation in place, the next phase (2024-2027) is focusing on scaling efficiencies and expanding the model beyond beverage vending. The SCC is now positioned as an independent profit center with the potential to extend its service framework to other asset-heavy industries, such as white goods or retail equipment. The ability to replicate this approach in new markets will determine the long-term impact of Genpact’s partnership with CCBJI.

The most compelling aspect of this initiative is its alignment with the broader shift toward Services as Software. While many providers discuss moving away from headcount-based service delivery, few have successfully implemented scalable, technology-led alternatives. Genpact’s integration of AI, predictive planning, and centralized execution demonstrates a step in this direction.

However, a key challenge remains: While service providers may be eager to take on risk through value-based contracts, clients often revert to traditional effort-based pricing models when the transformation cost appears higher than expected. This raises questions about the long-term sustainability of outcome-based engagements and whether they can withstand financial scrutiny over time. The real test for this model will be whether it can consistently deliver efficiencies that justify its pricing structure.

The bottom line: Beverage brands must transition from reactive service models to AI-driven, predictive operations that turn cost centers into revenue-generating assets. Without this shift, they risk operational inefficiencies and rising service costs, which are likely to impact profitability.

The challenge is not just adopting AI-driven efficiencies but ensuring their long-term viability. Many companies struggle to move beyond pilot programs due to financial constraints or resistance to value-based pricing. Success will require brands to integrate digital capabilities into their core operations, invest in predictive analytics, and establish governance structures that support sustained transformation. Those who can do this effectively will gain a competitive edge in an increasingly automated and data-driven market.