#KOF Centers of Commercial Excellence

Coca-Cola FEMSA created and set in motion four Centers of Commercial Excellence.

In order to contribute to the transformation of our Company, we have created and set in motion four Centers of Commercial Excellence, as a means to reach our strategic goals in a more efficient and sustainable manner.

Actions like these allow us to continue to operate with excellence and provide growing value for both clients and consumers.

Digital KOFmmercial Platform

This is an advanced analytics platform that will allow us to improve earnings by optimizing prices and promotions. As well as optimizing the portfolio offer for each consumer, while facilitating the identification of additional market opportunities.

The new generation of commercial marketing relies on a new platform for customer relationship management (CRM), which includes tools and back-office procedures for achieving granular segmentation. This segmentation allows us to prioritize actions targeting specific clients. This in turn helps our sales force promote sales-point execution, maximizing the value of visits and optimizing the allocation of resources in the market.

Automating our sales force with a new, user-centered application and a mobile device means they have a handheld device with improved functionalities, including sales quota measurements, prioritizing portfolio coverage, a module for specific initiatives, 360° client data and faster order loading.

Coca-Cola FEMSA presales.

Commercial and marketing

We have implemented the new digital commercial platform (KDP), rolling it out to traditional retail channels in Mexico in 2016. This allowed us to cover 81% of our total volume and reach over 620,000 clients. In Brazil, we have established 50 routes, covering 7665 clients. We plan to expand these processes to Central America in 2017.

Manufacturing

We have continued to roll out our Manufacturing Management Model to all the countries we operate in, increasing the number of lines to cover a third of the Company’s total volume. In Brazil, we centralized planning and maintenance budgeting, and launched projects for improving performance, such as Digital Distribution and the Certification in Packaging Technology. As a result of these actions, we have cut manufacturing costs by 35 million dollars.

Distribution and logistics

We are transforming the Supply Chain with a 360° process that covers everything from raw materials to distribution, and from strategic design to daily planning. The goal is to standardize our processes in all our beverage categories, countries, channels and business models, improving consumer service, optimizing costs and capital management. In four of our distribution centers in Mexico, we have incorporated digital technology and we will continue to extend the use of these tools throughout 2017.

Information technology (IT) and innovation

These support and equip our three other Centers of Excellence with tools via our digital KOFmmercial platform, which helps ensure sustainable business growth through innovation.

These projects have resulted in significant indirect benefits, such as a 50% reduction in workplace injuries and the highest production quality index in our history.


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