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Supply Chain Collaboration and Visibility The Supply Chain Dance |
| Compiled by Lothair, Written by Norbridge | |
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Company: Coca-Cola FEMSA Goal: Headquartered in Mexico
City, KOF is the largest bottler of Coca-Cola products for Mexico and
Argentina and the second-largest bottler and distributor of Coca-Cola
products in Latin America. With eight production plants and 63 distribution
centers, KOF needed a supply chain solution that could help decrease
stock-outs, reduce inventory, minimize variability in operations, improve
asset utilization, forecast accuracy, manage promotions, and enhance
customer service. KOF implemented J.D. Edwards’ Advanced Planning
software to more effectively manage its manufacturing and distribution
operations.
Process: In the company’s Valley of Mexico plants, KOF has increased demand-planning accuracy up to 93 percent and reduced stock-outs to just 0.6 percent. The software has helped KOF redistribute production-planning operations due to a plant closing and is enabling the company to balance reduced inventory levels with shipping frequency. In production planning, J.D. Edwards Advanced Planning has helped KOF achieve 80 percent utilization of the production plan and reduced the number of necessary plant floor changes by 20 percent. In addition, J.D. Edwards’ real-time Order Promising application factors plant floor changes into KOF’s product availability dates. If a pallet of Coca-Cola is damaged, the order-processing system captures the information and updates the availability data so customer service reps promise only what KOF can deliver. Result: Greater overall efficiency, and most importantly, happy Coca-Cola drinkers in Vera Cruz and throughout Latin America.
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