Operations

Logistics – Inventory Deployment

Shaping Demand - Distribution/Shaping Demand Network Optimization  

Priority :    0

Capability :    0

Statement

Where to locate/position and store inventory within the distribution/logistics network for optimal delivery. The replenishment requirements, logistics, warehousing ,fleet and infrastructure requirements. The strategy and implementation process within the RTM network, warehousing and inventory deployment are established to provide foundations for sales and distribution growth.

Score

Low - Basic

Medium - Advanced

High - Expert

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Foundations to support sales and logistics requirements are set including Warehousing facilities (how many, where located, ambient vs chilled) and Inventory Deployment of finished goods as the product flows from manufacturing to retail outlets (DC’s, Third Party facilities, Cross-docks).

The strategy and implementation process within the RTM network, warehousing and inventory deployment are established to optimize sales and distribution cost-to-serve and sustain business growth.

Optimization process of the Warehousing coverage strategy and Inventory Deployment decision making. RTM issues identification and contingency action are part of business planning.

Issues / Implications

Key element of the supply chain to ensure E2E supply of product to retailers and consumers. Addressing fundamental System issues to support sales and logistics requirements enhances overall System ability to support business growth strategies.

Evidence / Clarification

Inventory Deployment focuses on the details of the warehouse facilities where our products are stored – 3rd party, how many, where located, ambient/chilled. Opportunity to consider returnable packs and consignment stock.

Action It Leads To

Seamless product fulfillment through to the Customer and The Consumer. In-depth coverage of the Inventory Deployment decision making foundations. RTM issues identification and action planning as part of business planning.

KPI / Directions

Indicator: Out-Of-Stocks (OOS) / On-Time-In-Full (OTIF). Directions: OOS Root-Cause Approach.

Operations

Logistics – Customer & Consumer Delivery

Shaping Demand - Customer & Consumer Delivery Services  

Priority :    0

Capability :    0

Statement

Concerns the delivery of products to the outlet or the consumer. Consists of the routing routines ,resources and last mile requirements to deliver products efficiently. The System follows a distribution process where business results are tracked and correlated with segmented in-outlet execution to identify key drivers for improved business performance.

Score

Low - Basic

Medium - Advanced

High - Expert

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Low level of flexibility and adaptability, heavily invested in current RTM architecture, slow adaptation of technology. Difficult to respond to disruption. Root-Cause analysis of higher or lower store distribution services for the System and key drivers of business results are assessed on a routine basis -who delivers, fleet configuration, frequency, different options across segments.

Operates a limited number of RTM models supported by technology and slowly able to adapt. Can respond over time. The System follows a distribution process where business results are tracked and correlated with segmented in-outlet execution to identify key drivers for improved business performance.

Flexible and adaptable RTM infrastructure that can respond and react to customer (execution calendar – promo, events) and competitive actions immediately. The System has the capability to move with speed in a narrowly targeted way - eg static vs dynamic routing - to address threats or opportunities to minimize delivery cost-to-serve and achieve business growth plans.

Issues / Implications

With the growth in technology and a booming eComm network delivery options need to be flexible and agile meeting the customers needs. Failing to identify causal drivers of higher or lower store distribution services for the System leads to poor business results.

Evidence / Clarification

The ability to deliver products seamlessly through system providers using different RTM models Direct-Store-Delivery / Services, Pre-Sell, Customer Warehouse, Third party management (logistics / execution). The System has the capability to move with speed in a narrowly targeted way - eg static vs dynamic routing - to address threats or opportunities to minimize delivery cost-to-serve and achieve business growth plans. Involves physically moving the product from a plant or warehouse to the retail outlet - who delivers, fleet configuration, frequency, different options across segments, etc.

Action It Leads To

Correlation of delivery results within store activation - OTIF deliveries to customers and consumers. Ensure production lines are utilized efficiently and accurately with existing product line capacity and new innovations.

KPI / Directions

Indicator: Delivery Effectiveness – Efficiency KPIs. Directions: Salesforce Automation (SFA), KOmSurvey (Time & Motion Module) and Channel P&L (CHAMPS RTM Module & System Economics) Tools.

Operations

Execution – Merchandising

Servicing Demand – Merchandising Services  

Priority :    0

Capability :    0

Statement

Ensuring product availability in store on shelf and in cooler at all times prescribed by the PicOS and equipment planograms. The System has developed a set of win/win customer terms that directly link level of planned and paid investment to the level of planned and received support for revenue creating activities and the execution of the PicOS.

Score

Low - Basic

Medium - Advanced

High - Expert

.

Segmented customer strategy and alignment are set to drive the merchandising services delivered in market. Physical execution of segmented PicOS in retail outlets is in place. Merchandising value-added services reflect the in-store implementation of category-building, portfolio strategy, digital shelf and innovation initiatives. Segmented customer strategy and alignment are set to drive the merchandising services delivered in market. Physical execution of segmented PicOS in retail outlets is in place. Merchandising value-added services reflect the in-store implementation of category-building, portfolio strategy, digital shelf and innovation initiatives.

Customer value drivers and their links to overall RTM customer service systems and cost-to-serve strategy are optimized. Routine review of customer value drivers and their links to overall RTM customer service systems and cost-to-serve strategy are established.

The System has developed a set of win / win customer terms that directly link level of planned and paid investment to the level of planned and received support for revenue creating activities and the execution of the PicOS.

Issues / Implications

Revenue Growth and sales impacts. Without segmented customer strategy and alignment, the merchandising services cannot be delivered in market.

Evidence / Clarification

Improving stock levels in the store, with declining OOS readings. Is the System physical execution of segmented PicOS in retail outlets. Merchandising value-added services reflect the in-store implementation of category-building, portfolio strategy, digital shelf and innovation initiatives.

Action It Leads To

Review of customer value drivers and their links to overall RTM customer service systems and cost-to-serve strategy.

KPI / Directions

Indicator: Merchandising Effectiveness – Efficiency KPIs. Directions: Salesforce Automation (SFA), KOmSurvey (Time & Motion Module) and Channel P&L (CHAMPS RTM Module & System Economics) Tools.

Operations

Execution – Equipment Management

Servicing Demand - Equipment Placement & ROI  

Priority :    0

Capability :    0

Statement

How our brands come to life in and out of-store for the perfect shopping experience displayed and dispensed through refrigeration equipment, fountain equipment, display, and storage equipment. The System controls and obtains positive return on investment of equipment to deliver planned results across the full spectrum of customers, including Horeca, Mom & Pop, local and international retailers.

Score

Low - Basic

Medium - Advanced

High - Expert

.

Controls over key elements of equipment, both cold and ambient are established (placement, maintenance, repair & refurbishment, asset tracking, disposal/recycling).

Equipment execution across diverse channels and customers is set to support RTM goals. For leading edge retailers, equipment management and services include category management, ECR, store card data mining and joint business planning.

Controls to obtain positive return on investment of equipment to deliver planned results across the full spectrum of customers (including Horeca, Mom and Pop and local and international retailers) and solutions that lead to planned execution from the least to most sophisticated customers currently or potentially operating in the market are set.

Issues / Implications

Equipment (ambient and cold) management drives revenue growth through sales and is where our consumers interact with our product. Equipment influences the quality and integrity of the product. Achieving equipment execution across diverse channels and customers is key to RTM goals. For leading edge retailers, equipment management and services would include category management, efficient consumer response, store card data mining and joint business planning.

Evidence / Clarification

Equipment (Frozen, Ambient, Chilled) are positioned indoors and outdoors to sell Coca- Cola Products at the ideal temperature. Involves control over all elements of equipment, both cold and ambient – placement, maintenance, repair & refurbishment, asset tracking, disposal/recycling, etc. The System has developed solutions that lead to planned execution from the least to most sophisticated customers currently or potentially operating in the market.

Action It Leads To

Management processes and systems enabled by technology tools and people to secure equipment integrity and sustainability. Development of relevant equipment management and technical services tools - eg iOT. Inclusion of packaging opportunities for RTD beverages esp. in the context of aggregators for delivery – eg. Coffee & customers using fountain.

KPI / Directions

Indicator: Equipment ROI and Technical Service Analysis. Directions: KOmSurvey (Time & Motion Module) and Channel P&L (CHAMPS Asset Mgt & Technical Service Modules & System Economics) Tools - Opportunity to leverage CDE E2E Management Program from South Latin.

Operations

Profit-To-Serve – Channel & Customer

Channel & Customer Activity Based Costing To Manage Profit-To-Serve  

Priority :    0

Capability :    0

Statement

Evaluating Channels & Customers Economics - Activity-based processes are in place to track and manage Profit-To-Serve by RTM model, Channel and Outlet. The System has the necessary processes to optimize cost-to-serve to measurably deliver against profitable RTM objectives. Customer Business Models are understood, and their key financial measures considered when evaluating the sustainability of potential new brand or packages solutions for the System.

Score

Low - Basic

Medium - Advanced

High - Expert

.

Little understanding of the cost to serve elements and managed as distribution cost on P&L, Considered one activity. RTM Profit-To-Serve optimization are identified on downstream part of System P&L utilizing financial allocation breakdown approach. Tools to understand and interpret customer strategic and financial needs are in place.

Ability to perform activity-based costing and not linking back to the RTM strategy. Customer service systems are in place to attend current portfolio and innovation through to enhancements in customer terms and efficiency in DME, value chain, logistics and finance. Customer values are isolated and focused to optimize Activity-Based Profit-To-Serve.

Ability to link the RTM strategy to Profit-To-Serve to facilitate and enhance RTM efficiency by managing activity-based costs. Can result in models and simulations to determine optimized RTM models. Full Channel P&L with activity based costing is considered on RTM strategies development. Cross-functional understanding of route to market strategy and customer service programs in place to focus and reward end-to-end business growth initiatives. Customer Business Models are understood, and their key financial measures considered when evaluating the sustainability of potential new brand or packages solutions for the System.

Issues / Implications

RTM Cost-To-Serve optimization impacts the downstream part of System P&L which is essential to drive business profitability and needs to be understood by the entire organization. Failure to meet core customer needs through Coca Cola and other brands undermines the ability to Connect with Consumers and purchasers in the market.

Evidence / Clarification

Improved margins, satisfied customers and ability to execute the PicOS. The System actively seeks to bring differentiated value creating propositions to market that will achieve ongoing customer support through their category building potential.

Action It Leads To

Optimized Profit-To-Serve compliments commercial strategy to maximise revenue growth. Cross-functional understanding of route to market strategy and customer service programs in place to focus and reward end-to-end business growth initiatives. Development of tools to understand and interpret customer strategic and financial needs.

KPI / Directions

Indicator: Channel & Customer Activity-Based Profit-To-Serve Analysis. Directions: KOmSurvey (Time & Motion Module) and Channel P&L (CHAMPS Integrated Framework & System Economics) Tools.