Coke Journey

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Coca-Cola’s Journey to World Class Supply Chain Excellence

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Classified - Internal use

Agenda
• • • • • • Who We (CPS) Are Journey Stages Structure & People SCE3 Methodology Key Learnings Q&A

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Who is Commercial Products Supply?
Caps CO2 Water Concentrate Bottles Brand Labels

Sweeteners
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CPS’s Global Span

in es rn Sit te re 8 es he W isp em H

in es & Sit pe 7 ro a Eu fric A

in es Sit ia 10 As

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Our Supply Chain Excellence Journey….
SCE2

SCE3
•Industry Standards •Lean principles World Class Destination

Lean OEx

•Mindset & •Behaviors •Sensei team •Align SCOR ® •Best Practices

CSCMP

SUPPLY CHAIN BREAKTHROUGH

Lean

SCE1

•Add ISO /OHSAS •Across Plants

SCOR

®

Value Chain Assessment MRP II

Network

•Out of the 4 walls

Supply Chain

•Chris Gray audit •Internal process

UE AL V

Value Grows As We Grow Our Capability While Engaging Our Customer

The Basics 1990´s 2000-2002 2003-2004 2005-2006 2006 2007-2009 -Beyond

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Why Adopt CSCMP World Class Standards?
GAP MAP
18 16 14 12
Importance
Supply Mgmt Demand Mgmt Inventory Mgmt Customer Engagement CPFR Information Technology Production Excecution New Products Introduction Operations Planning Quality

10 8 6 4 2 0 0.0 0.5 Gap

Network Design Warehouse mgmt Capability Development Transportation Mgmt Order Mgmt IMCR BCP ESLP Infrastructure Development 3PL

1.0

1.5

Improvement Chart
Operations Excecution Demand Mgmt Quality

Global CPS - Transportation Management

Importance Ranking

New Products Introduction Operations Planning

18 16 14 12 10 8 6 4 2 0 1.0 1.5 2 .0 2.5 3.0 3 .5 4.0 4.5 5 .0

Importance ->

Supply Mgmt
CPFR Network Design

Inventory Mgmt Customer Engagement
Information Technology Warehouse mgmt Capability Development Order Mgmt

Transportation Mgmt IMCR BCP ESLP 3PL

Infrastructure Development

Current & Desired Levels
Desired

Worst Improved

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Our Emphasis Focus on Key Processes
World Class Standards

Basic Standards Priority Matrix Medium ~1/3

Low ~1/3

High ~1/3

‘MRP-II’ Critical Questions 7
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People are the Key to Success
Provide inputs for WC Requirement Review audit report & assist in CAP Approve local waivers Leverage SCE tool for strategic decision

Enabler & Consultant Source of SC knowledge Re-enforce Standards Share successful practices

Implement SCE process Assist Plant LT in BP process Train plant associates Adapt best practices

Provide Lean principle Define Operational Standards Align Mindset & Capability Continuous Improvement culture

• Establish the Vision & Mission • Connect all SC partners • Build SC capability • System sustainability • Drive Right Behaviors • Eliminate Waste • Standardize & Optimize Classified - Internal use

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The SCE3 Methodology
• • • • • • Pre-work Remote sessions On-site sessions Post work Sustainability “The Report “

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On-Site
• Team – 2 Process auditors & 1 Lean / Operational Excellence auditor • One week agenda agreed to in advance • Go and see • Strive for consensus • Share successful practices from other plants • Identity new successful practices

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The SCE3 Methodology Post Work & Sustainability
• Post-Work
– Recognition – Corrective Action Plans – Annual Business Plan

• Sustainability
– Global Business Process Lead – SCE Team Biweekly Conference Calls – Tool Enhancements – SCE4 11
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Basis Requirement High Level View

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World Class High Priority Process

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What we Gained from this
• • • • • Global Standardization – Processes & Metrics Global Collaboration – Across Plants Demonstrated Process Improvements...
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