Working As An Integrated
Global System
Ron Lewis
Vice President, North America
Coca-Cola Enterprises
What Is Cross Enterprise Procurement
Group?
• System’s Global Bottler Collaborative Procurement Initiative
• Work Together Across Key Categories of Spend
• Collaborative Effort Involving Company, Bottlers and Suppliers
• 86% Global Unit Case Sales Represented in CEPG
• 33 Initiatives Link in 215 Bottlers
          Closures & Labels
                     Glass
                      Metal
                                                                   % System
                       PET
                                                                   Spend In
Sales & Marketing Equipment
                                                                    CEPG
                Sweeteners
                      Total

                              0   20    40      60      80       100
CEPG Operates On A Global Scale
        $19 Bn = 2/3 Of Global Buy


        CCBSS       Entecom                  CCBSC

    Promesa                           CBPC


                              EAJPF

                AFBCC
Unique Rules Of Engagement
                    Approve strategies and business
        OPERATING
                    plans, hold teams accountable
        COMMITTEE
                    and measure performance




        PROGRAM     Direct and validate
        SPONSORS    program strategies




                    Empowered to negotiate for all
        PROGRAM
                    members, accountable for
         TEAMS
                    delivering results
How CEPG Adds Value
   Deep Category                              Global Supplier
   Knowledge                                 Relationships To
                                              Leverage Scale



                     Alignment To Speak
                   To System And Suppliers
                        With One Voice


   Commodity Price Risk                        Sustainability
   Management                                 And Innovation
   Expertise
Driving CEPG To The Next Level
  TODAY                                   2020


          Operational Excellence


          Sustain Competitive Advantage


          Expanding Scope
We Are One Of The World’s Largest Consumer
Goods Businesses                                                                                    ESTIMATE




    BUY               MAKE                         MOVE                 SERVE



$64 Bn        ~$32 Bn                       ~$8 Bn                ~$16 Bn                  ~$8 Bn
Cost              (50%)                      (12.5%)                 (25%)                   (12.5%)
          > $19B system               900+ manufacturing      8,500 warehouses       65 MM cases/day
            controlled spend          operations
                                                              200,000 delivery       16 MM distribution
                                      ~300 contract fillers   trucks                 points
                                                                                     2.4 MM vendors
                                                                                     7 MM coolers

$50 Bn        ~$6-8 Bn                 ~$10-15 Bn             ~$25-30 Bn                 ~$6 Bn
Assets    (raw materials inventory)           (plants)        (warehouses & fleet)   (cold drink equipment)

$8 Bn
Capital
                       Per Year, Current Business Model
We Are One Of The World’s Largest Consumer
Goods Businesses                                                                                    ESTIMATE




    BUY               MAKE                         MOVE                 SERVE



$64 Bn        ~$32 Bn                       ~$8 Bn                ~$16 Bn                  ~$8 Bn
Cost              (50%)                      (12.5%)                 (25%)                   (12.5%)
          > $19B system               900+ manufacturing      8,500 warehouses       65 MM cases/day
            controlled spend          operations
                                                              200,000 delivery       16 MM distribution
                                      ~300 contract fillers   trucks                 points
                                                                                     2.4 MM vendors
                                                                                     7 MM coolers

$50 Bn        ~$6-8 Bn                 ~$10-15 Bn             ~$25-30 Bn                 ~$6 Bn
Assets    (raw materials inventory)           (plants)        (warehouses & fleet)   (cold drink equipment)

$8 Bn
Capital
                       Per Year, Current Business Model
We Are One Of The World’s Largest Consumer
Goods Businesses                                                                                    ESTIMATE




    BUY               MAKE                         MOVE                 SERVE



$64 Bn        ~$32 Bn                       ~$8 Bn                ~$16 Bn                  ~$8 Bn
Cost              (50%)                      (12.5%)                 (25%)                   (12.5%)
          > $19B system               900+ manufacturing      8,500 warehouses       65 MM cases/day
            controlled spend          operations
                                                              200,000 delivery       16 MM distribution
                                      ~300 contract fillers   trucks                 points
                                                                                     2.4 MM vendors
                                                                                     7 MM coolers

$50 Bn        ~$6-8 Bn                 ~$10-15 Bn             ~$25-30 Bn                 ~$6 Bn
Assets    (raw materials inventory)           (plants)        (warehouses & fleet)   (cold drink equipment)

$8 Bn
Capital
                       Per Year, Current Business Model
We Are One Of The World’s Largest Consumer
Goods Businesses                                                                                    ESTIMATE




    BUY               MAKE                         MOVE                 SERVE



$64 Bn        ~$32 Bn                       ~$8 Bn                ~$16 Bn                  ~$8 Bn
Cost              (50%)                      (12.5%)                 (25%)                   (12.5%)
          > $19B system               900+ manufacturing      8,500 warehouses       65 MM cases/day
            controlled spend          operations
                                                              200,000 delivery       16 MM distribution
                                      ~300 contract fillers   trucks                 points
                                                                                     2.4 MM vendors
                                                                                     7 MM coolers

$50 Bn        ~$6-8 Bn                 ~$10-15 Bn             ~$25-30 Bn                 ~$6 Bn
Assets    (raw materials inventory)           (plants)        (warehouses & fleet)   (cold drink equipment)

$8 Bn
Capital
                       Per Year, Current Business Model

Ko 2020 Global Procurement Alignment

  • 1.
    Working As AnIntegrated Global System Ron Lewis Vice President, North America Coca-Cola Enterprises
  • 2.
    What Is CrossEnterprise Procurement Group? • System’s Global Bottler Collaborative Procurement Initiative • Work Together Across Key Categories of Spend • Collaborative Effort Involving Company, Bottlers and Suppliers • 86% Global Unit Case Sales Represented in CEPG • 33 Initiatives Link in 215 Bottlers Closures & Labels Glass Metal % System PET Spend In Sales & Marketing Equipment CEPG Sweeteners Total 0 20 40 60 80 100
  • 3.
    CEPG Operates OnA Global Scale $19 Bn = 2/3 Of Global Buy CCBSS Entecom CCBSC Promesa CBPC EAJPF AFBCC
  • 4.
    Unique Rules OfEngagement Approve strategies and business OPERATING plans, hold teams accountable COMMITTEE and measure performance PROGRAM Direct and validate SPONSORS program strategies Empowered to negotiate for all PROGRAM members, accountable for TEAMS delivering results
  • 5.
    How CEPG AddsValue Deep Category Global Supplier Knowledge Relationships To Leverage Scale Alignment To Speak To System And Suppliers With One Voice Commodity Price Risk Sustainability Management And Innovation Expertise
  • 6.
    Driving CEPG ToThe Next Level TODAY 2020 Operational Excellence Sustain Competitive Advantage Expanding Scope
  • 7.
    We Are OneOf The World’s Largest Consumer Goods Businesses ESTIMATE BUY MAKE MOVE SERVE $64 Bn ~$32 Bn ~$8 Bn ~$16 Bn ~$8 Bn Cost (50%) (12.5%) (25%) (12.5%) > $19B system 900+ manufacturing 8,500 warehouses 65 MM cases/day controlled spend operations 200,000 delivery 16 MM distribution ~300 contract fillers trucks points 2.4 MM vendors 7 MM coolers $50 Bn ~$6-8 Bn ~$10-15 Bn ~$25-30 Bn ~$6 Bn Assets (raw materials inventory) (plants) (warehouses & fleet) (cold drink equipment) $8 Bn Capital Per Year, Current Business Model
  • 8.
    We Are OneOf The World’s Largest Consumer Goods Businesses ESTIMATE BUY MAKE MOVE SERVE $64 Bn ~$32 Bn ~$8 Bn ~$16 Bn ~$8 Bn Cost (50%) (12.5%) (25%) (12.5%) > $19B system 900+ manufacturing 8,500 warehouses 65 MM cases/day controlled spend operations 200,000 delivery 16 MM distribution ~300 contract fillers trucks points 2.4 MM vendors 7 MM coolers $50 Bn ~$6-8 Bn ~$10-15 Bn ~$25-30 Bn ~$6 Bn Assets (raw materials inventory) (plants) (warehouses & fleet) (cold drink equipment) $8 Bn Capital Per Year, Current Business Model
  • 9.
    We Are OneOf The World’s Largest Consumer Goods Businesses ESTIMATE BUY MAKE MOVE SERVE $64 Bn ~$32 Bn ~$8 Bn ~$16 Bn ~$8 Bn Cost (50%) (12.5%) (25%) (12.5%) > $19B system 900+ manufacturing 8,500 warehouses 65 MM cases/day controlled spend operations 200,000 delivery 16 MM distribution ~300 contract fillers trucks points 2.4 MM vendors 7 MM coolers $50 Bn ~$6-8 Bn ~$10-15 Bn ~$25-30 Bn ~$6 Bn Assets (raw materials inventory) (plants) (warehouses & fleet) (cold drink equipment) $8 Bn Capital Per Year, Current Business Model
  • 10.
    We Are OneOf The World’s Largest Consumer Goods Businesses ESTIMATE BUY MAKE MOVE SERVE $64 Bn ~$32 Bn ~$8 Bn ~$16 Bn ~$8 Bn Cost (50%) (12.5%) (25%) (12.5%) > $19B system 900+ manufacturing 8,500 warehouses 65 MM cases/day controlled spend operations 200,000 delivery 16 MM distribution ~300 contract fillers trucks points 2.4 MM vendors 7 MM coolers $50 Bn ~$6-8 Bn ~$10-15 Bn ~$25-30 Bn ~$6 Bn Assets (raw materials inventory) (plants) (warehouses & fleet) (cold drink equipment) $8 Bn Capital Per Year, Current Business Model