Coca-Cola FEMSA reveals cost benefits from digital transformation

Coca-Cola FEMSA, the largest Coca-Cola franchise bottler in the world by sales volume, has revealed its achievements from digital transformation investment.
Coca-Cola FEMSA digital transformation
The annual report 2018 of Coca-Cola FEMSA indicated that its effectiveness at adapting to different markets has resulted in strong performance for Coca-Cola FEMSA across the ten countries where it is present.

Coca-Cola FEMSA said its KOFmmercial Digital Platform contributed to top line growth of 5.6 percent in Mexico.

The Coca-Cola bottler said its KOFmmercial Digital Platform, which is backed by analytics, and Digital Distribution network boost performance with consistent volume growth in Brazil throughout the year.

Coca-Cola FEMSA strengthened competitive position in the face of a very challenging macro environment due to effective pricing and affordability strategies, as well as the rollout of its KOFmmercial Digital Platform in Argentina.

Coca-Cola FEMSA rolled out KOFmmercial Digital Platform operational tool — reaching 7,600 pre-sale routes in 8 countries by year’s end. “We plan to expand its use into the newly acquired territories of Uruguay and Guatemala in 2019,” Coca-Cola FEMSA said.
Coca-Cola FEMSA digital achievementsCoca-Cola FEMSA implemented the Plant Operating Model in 69 bottling lines — increasing efficiency by 2 percent over 2017. Coca-Cola FEMSA merged Manufacturing Management Model’s core elements into its end-to-end Digital Manufacturing 2.0 platform to enhance production line execution.

Coca-Cola FEMSA reported a Lost Time Incident Rate (LTIR) of 1.07 in 2018, a 12 percent decrease compared with 2017 and a 69 percent reduction compared with 2014. They also contributed to a 16 percent reduction in Lost Time Incident Severity Rate (LTISR), from 26.97 in 2017 to 22.68 in 2018.

Coca-Cola FEMSA has introduced a digital distribution system in Mexico and Brazil which consists of digitizing distribution by installing telemetry devices and a distribution platform. This initiative results in better route planning, increased safety and fuel and maintenance savings. The company will expand Digital Distribution across all markets in 2019.

Coca-Cola FEMSA said its volume increased 1 percent to 796.1 million unit cases in Q1 2019, driven mainly by 9.1 percent growth in Brazil. Total revenues increased 4.8 percent to Ps. 46,248 million, driven mainly by price increases.

Coca-Cola FEMSA has 49 manufacturing plants and 275 distribution centers, offering 131 brands to a population of more than 257 million.

“Our analytics capability in Mexico and Colombia has delivered very positive results for us highlighted by an improved point-of-sale execution and improvements with the return to our promotional activities at retail. We will be expanding these analytics capabilities to Brazil and Argentina during 2019,” Coca-Cola FEMSA said.

JDA Software said Coca-Cola FEMSA has deployed JDA’s supply chain solutions to hike profitability and maximize its process and cost efficiencies through its end-to-end supply chain.

Coca-Cola FEMSA’s cost logistics services platform has generated $50 million worth of savings in 2018.

Rajani Baburajan

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