Accelerating towards
operational excellence

Driving Manufacturing Efficiency
By getting the most out of every resource in our production process—from each kilowatt of energy to each liter of water—we delivered hard manufacturing savings of US$36 million in 2016.

Driving Manufacturing Efficiency
By getting the most out of every resource in our production process—from each kilowatt of energy to each liter of water—we delivered hard manufacturing savings of US$36 million in 2016.

Importantly, our Commercial CoE began implementation of our KOFmmercial Digital Platform (KDP), based on three pillars. Advanced analytics for revenue transformation enable us to improve our revenue growth by optimizing our price promotion and portfolio mix for each customer, while identifying additional market opportunities. Next generation trade marketing utilizes a new customer relationship management (CRM) platform, including back-office tools and processes, to implement granular segmentation, through which we prioritize targeted initiatives for specific clients, enabling our sales force to enhance point-of-sale execution, maximize the value of their customer visits, and achieve better resource allocation in the market. Sales force automation, with a new user-centric app and mobile device, empowers our sales force with improved hand-held functionalities, including sales quota progress, priority portfolio coverage, a targeted initiatives module, 360° customer data, and faster order entry.

Fostering Employee Safety
Thanks to our Manufacturing and Distribution & Logistics CoEs, we reduced our lost-time incidents by 35% year over year—contributing to our employees’ safety and quality of life.

Our Distribution & Logistics CoE is transforming our supply chain planning into a 360° process: end-to-end, from materials to final distribution; and top-down, from strategic network design to day-to-day planning. Our goal is to create a best-in-class supply chain across all of our beverage categories, geographies, channels, and business models. Our new 360° supply chain planning process will increase customer service while optimizing costs and capital by leveraging our scale and expertise through standardized processes, enhanced centralized organizational capabilities, and cutting-edge technological tools.

We are also incorporating digital technology into our distribution system, integrating three elements—Mobile Delivery App, Vehicle Telematics, and Live Web Platform. These features enable us to deliver customer satisfaction, route-to-market resource optimization, and enhanced driver safety. Already, we implemented Digital Distribution at four distribution centers in Mexico, and will expand this initiative to the rest of Mexico in 2017.

To bolster manufacturing efficiency and productivity, our Manufacturing CoE continued the rollout of our proprietary Manufacturing Management Model, comprised of our Plant Operating Model; Centralized Plant Maintenance Planning; Standardized Maintenance System; and Manufacturing Execution System. In 2016, we increased production lines under our Plant Operating Model—covering one-third of our company’s total volumes. We also successfully launched our Centralized Plant Maintenance Planning in Brazil. Instead of different teams performing different functions at each plant, we centralized our plants’ maintenance planning and budgeting at the country level. We are further designing a new Standardized Maintenance System, utilizing a uniform methodology for the maintenance of all of our plants’ equipment. Moreover, we upgraded our Manufacturing Execution System. Utilizing advanced analytics, this digital platform maps and monitors our plants’ performance, enabling better decision-making, budget analysis, and technical training. Ultimately, our Manufacturing Management Model offers us an integrated operational perspective to optimize costs, drive efficiency, and raise productivity.

Achieving Best Manufacturing Quality Index
Our Manufacturing CoE enabled us to achieve the best quality index in the history of our company.

Achieving Best Manufacturing Quality Index
Our Manufacturing CoE enabled us to achieve the best quality index in the history of our company.

Deploying KDP Delivers Results
During 2016, we rolled out KDP across our traditional sales channel in Mexico, covering 81% of our volume. Overall, we reached 3,477 routes, serving 615,000 clients. Additionally, we implemented KDP at 50 routes, serving 7,665 clients in São Paulo, Brazil. As a result, we achieved incremental volume and revenue growth, with improved point-of-sale execution, across the areas with KDP.