In the area of needs forecasting, we will introduce machine learning algorithms to improve business planning processes. The level of precision, transparency and reproducibility of this technology continues to improve and we plan to expand our skills and tools in this area to advance our end-to-end planning optimization from supplier to consumer. The GSP is one of all contractual agreements between The Coca-Cola Company and our direct and authorized suppliers. We expect our suppliers to develop and implement appropriate internal business processes to meet expectations. We closely monitor the implementation of our supplier management principles by using independent third parties to assess supplier filling points. We have installed photovoltaic (solar energy) in our plants in Oricola, Nogara and Marcianise in Italy. New suppliers must prove that they are GSP compliant before being certified as approved suppliers. The entity reserves the right to terminate a contract with a supplier that is unable to demonstrate compliance with the SGP requirements. However, this should be considered as a last resort. In the end, the departure of problems does not solve the problem or improves the situation of the communities and interest groups concerned. Instead, by partnering with the GUIDing principles of the United Nations, we want to work with other large buyers to increase the influence on suppliers, to engage.
Our program is constantly evolving as we continue to learn and take on new challenges. We regularly advise stakeholders and benchmarks with industry standards, as well as colleagues from organizations such as AIM-PROGRESS and the Consumer Goods Forum, to improve our program. As a result, supplier guidelines will be reviewed and updated if necessary and we anticipate that the next update will be introduced in 2021-2022. Coca-Cola HBC also divides suppliers into three categories based on criticism and potential opportunities: Group suppliers are those that meet one of the following criteria: high proportion of expenses, critical components (e.g.B sweeteners, juice, resin, boxes, glass, preforms, closures, Aseptic Packaging), limited alternatives and partnership that supports our business strategies. National strategic suppliers are those of strategic importance at the local or regional level. Both suppliers of Group Critical – Country Strategic are considered essential to the competitiveness and success of Coca-Cola HBC. Tactical suppliers are low-volume and/or low-cost suppliers and provide goods or services with many alternative sources available, allowing for a flexible supply base. To manage the increased production of our mega-installations and the complexity of our expanded 24/7 portfolio, we continued to invest in the automation of our high-performance warehouses. Automated bearings and automated vehicles improve both efficiency and quality of service.
The new augmented reality technology helps us manage the complexity of our expanded portfolio 24/7. Technology helps our storage colleagues remove inventory from the warehouse and pack them for customer delivery, improving the speed and accuracy of our service. We attach great importance to the creation of partnerships with suppliers who have delivery points in our countries, both multinational and local, while developing powerful local suppliers in our territories. These efforts support our local procurement strategy and contribute to socio-economic development in the countries where we do business. These suppliers contribute significantly to our activities and include key markets such as Russia, Nigeria, Italy, Romania and Poland.