Aligned with our priority to expand our total and digital client base across our markets we will continue to build a future-ready omnichannel multi-category commercial platform—which will seamlessly interact with other interconnected platforms and encompass our business-to-business (B2B), direct-to-consumer (D2C), indirect, and digital trade channels.
become our
customer’s preferred
Omnichannel Commercial Platform
To achieve our vision, we are building a profitable, customer-centric omnichannel B2B commercial platform across our multi-category product offerings, with a differentiated end-to-end customer experience.
10:00 AM
Juan has been our client for some years. Today, as every Monday, Juan is visited by Mario, his usual pre-seller.
While Juan is busy taking care of his business, he asks Mario to place his weekly order.
03:30 PM
Hours later, Juan realizes that he forgot to order a specific product, but it is too late. Mario will visit him again in a few days.
Juan then uses KOF’s chatbot to place an additional order, including the specific product he had forgotten.
03:35 PM
Mario instantly receives a notification in his handheld: “Juan has placed an additional order.”
04:02 PM
Mario decides to call Juan to confirm his new request.
08:00 PM
Overnight, Juan’s cooler malfunctioned.
10:30 AM NEXT DAY
Next, he confirms that his most recent orders will be delivered in the afternoon, using the order tracking functionality.
12:55 PM NEXT DAY
As the delivery truck approaches Juan’s business, he receives a notification: “Your order is about to be delivered. You will be the next customer in our route to be served.”
01:50 PM NEXT DAY
The delivery truck arrives, and Juan receives both of his orders. He uses the built-in e-payment system in KOF’s mobile app to create a QR Code.
Juan validates his payment was successful and verifies his total balance. Juan is a satisfied customer.
10:00 AM
Juan has been our client for some years. Today, as every Monday, Juan is visited by Mario, his usual pre-seller.
While Juan is busy taking care of his business, he asks Mario to place his weekly order.
03:30 PM
Hours later, Juan realizes that he forgot to order a specific product, but it is too late. Mario will visit him again in a few days.
Juan then uses KOF’s chatbot to place an additional order, including the specific product he had forgotten.
03:35 PM
Mario instantly receives a notification in his handheld: “Juan has placed an additional order.”
04:02 PM
Mario decides to call Juan to confirm his new request.
08:00 PM
Overnight, Juan’s cooler malfunctioned.
10:30 AM NEXT DAY
Next, he confirms that his most recent orders will be delivered in the afternoon, using the order tracking functionality.
12:55 PM NEXT DAY
As the delivery truck approaches Juan’s business, he receives a notification: “Your order is about to be delivered. You will be the next customer in our route to be served.”
01:50 PM NEXT DAY
The delivery truck arrives, and Juan receives both of his orders. He uses the built-in e-payment system in KOF’s mobile app to create a QR Code.
Juan validates his payment was successful and verifies his total balance. Juan is a satisfied customer.
During the year, we significantly accelerated the evolution of our customer-centric Juntos+ B2B omnichannel multi-category commercial platform. Through this omnichannel platform, we will connect every point of contact in real time for our large base of more than 2 million traditional trade clients. To this end, we are building on our successful pre-sale model and call center experience with digital touch points to amplify our customer service—from direct messaging and chatbot-enabled conversational commerce to mobile and desktop experiences via our app and web portal—so our clients can interact with us whenever, wherever, and whichever way they want.
Our Juntos+ platform is focused on the customer first and foremost. With that mindset, we are building out our omnichannel platform around them, offering a growing array of customer-centric options and features to provide a holistic client experience across multiple points of contact. Recognizing that this is very much a relationship-driven business, we are enhancing the face-to-face personal customer experience our clients enjoy with digital order-entry tools, including our chatbot-enabled conversational commerce solution and our evolving web portal and mobile app—which we are scaling up companywide after our successful deployment across Brazil, Mexico, and now Colombia. The mobile app’s latest version 3.0 provides our clients with a wider array of features, including 24/7 digital order entry and tracking, exclusive promotions, and a developing customer loyalty program.
Our large base of traditional trade customers is rapidly embracing the digital options available on our omnichannel platform. Notably, we are now serving over 1.3 million registered clients, reaching more than 800 thousand digital monthly active users, on our B2B platform—up over 170% and 210%, respectively, year over year—in Argentina, Brazil, Central America, Colombia, and Mexico. Clients’ preference for our robust omnichannel platform is clearly reflected in their growing customer satisfaction, acceptance, and rising orders, while amplifying the performance of new categories across our product portfolio.
Overall, we processed more than 17.7 million orders on digital channels, generating close to US$1.2 billion in digital revenue that represents roughly 16% of our company’s total orders—a triple-digit increase in orders and revenue as compared to 2021.
This year, digital sales accounted for almost US$1.2 billion.
We processed more than 17.7 million orders on digital channels in 2022.
We are serving over 1.3 million registered clients, including more than 800 thousand monthly active users digital, on our B2B platform.
Digital revenue represents approximately 16% of our company’s total orders.
This year, our Colombian operation expanded its base of digital purchasing clients to over 177,000 digital monthly active users on our B2B omnichannel commercial platform. Building on the successful strategic evolution of our omnichannel platform in Brazil and Mexico, we capitalized on growing customer demand for our chatbot-enabled conversational commerce solution. This easy-to-use solution enables our large base of traditional trade clients to expand their order entry window to 24/7, empowering them to place an order for their favorite brands/categories whenever and wherever they want.
During 2022, our Brazilian and Mexican operations reached approximately 917,000 registered users—including almost 615,000 monthly active users—on our B2B omnichannel multi-category commercial platform. Appealing to customer demand for a one-stop solution, our B2B platform enables our large base of traditional trade clients to not only place an order for their favorite brands/categories whenever, wherever, and whichever way they choose, but also take advantage of a constantly evolving array of features—from 24/7 digital order entry and tracking to exclusive product promotions and a customer loyalty program now deployed to over 100 thousand customers.
For the year, our Brazilian and Mexican traditional trade customers generated over US$1 billion digital revenue on our B2B omnichannel platform—up 221% from 2021.
Our goal is to develop a profitable and scalable D2C business model to market our company’s products and services directly to our consumers’ homes, acting as a benchmark in the market. Aligned with this goal, our mission is to become households’ favorite D2C multi-category platform throughout our operations, offering top-class services.
EVOLVING D2C OMNICHANNEL PLATFORM
Aligned with our mission, we continue to enhance and develop the functionalities of our evolving D2C model throughout our customer-centric points of contact to become the favorite platform for home consumers throughout our company’s operations.
Vision
Develop a profitable and scalable standardized model to sell products directly to the consumer at home, being a reference in the market
Mission
Be the favorite B2C platform for consumers in KOF’s operations offering top class service
This year, we carried on with the historic expansion of our D2C home delivery model, rolling out 400 new routes—reaching close to 1,650 routes serving almost 600 thousand households in Mexico. Our home delivery coverage continued to prioritize the cities and territories with the most market potential, including Mexico City, Leon, Puebla, San Luis, Tapachula, Toluca, Tuxtla, and Veracruz. Looking ahead, we are exploring the possible expansion of our home delivery model to other countries of operation based on their market potential and digital maturity.
Importantly, we integrated our consumer-centric D2C omnichannel platform across 85% of our home delivery routes, and we dramatically expanded our base of monthly active users.
Thanks to our evolving D2C omnichannel platform, home consumers enjoy the personalized attention and direct support of their delivery route drivers and customer call centers; the 24/7 digital home order-entry platform; and the digital shopping experience of the Coca-Cola en tu Hogar (CCETH) website, enabling them to view our complete portfolio with all of our promotions. The success of our D2C platform is reflected not only in home consumers’ growing acceptance and digital orders, but also in our multi-category portfolio’s enhanced price-mix performance, with the average ticket of consumers who buy online increasing almost two times.
We processed more than 900 thousand digital home delivery orders in 2022, expanding our average ticket by 2 times versus auto sales model.
As we move forward, we will continue to enhance and develop the functionalities of this evolving D2C omnichannel platform throughout our main consumer-centric points of contact—from the integration of web-based digital payment platforms and multi-category product offerings to 24-hour and scheduled deliveries—to improve our value proposition and expand our household penetration while continuing our consumer-focused evolution.
Aligned with our vision, the mission of our digital and analytics hub is to enable the expansion of our omnichannel commercial platforms by connecting the needs of our customers, consumers, and business—using technology to drive a new way of working across the company. Through our agile, digital, analytical, and customer-focused talent and mindset, we not only empower our organization’s cultural transformation and strategic capability building, but also co-create prioritized digital and analytical solutions that accelerate the deployment of our commercial platforms and solutions holistically through agile cells—ranging from our Juntos+ B2B, D2C, and indirect omnichannel platforms to digital payments, pricing, and promotions.
Enabling A New Way of Working (WoW)
Through our digital and analytics hub, we have implemented a co-creation process where we assemble agile cells—with different profiles, skills, functions, and areas—that ensure our business units’ participation from the conception and development to the delivery of our digital and analytical solutions to our operations, clients/customers, and consumers. To this end, we use agile product construction frameworks such as scrum or kanban that enable continuous value deliveries over short time spans, while building workspaces and environments that facilitate collaboration and encourage teamwork.
Enabling An Aggressive Pipeline of Digital and Analytical Solutions
Through our co-creation model, our agile cells are not only accelerating the expansion of our omnichannel platforms, but also generating positive value through an aggressive pipeline of digital and analytical solutions. One of our agile cells is working to design, implement, and scale the suggested order analytical solution for our Juntos+ B2B platform, utilizing machine-learning algorithms. This solution enables us to predict the number of products our clients’ need to prevent out of stocks, and thereby, improve the customer experience by tackling two key pain points for our traditional trade clients: increasing sales while reducing out of stocks of their preferred products. Consequently, the more than 1.1 million Brazilian and Mexican customers with suggested order have increased their sales significantly.
Another agile cell is optimizing distribution planning at the strategic, tactical, and operational levels, using machine learning and digital applications to accelerate our delivery response capacity in order to increase customer service and business profitability. As a result, we have improved our customer service levels considerably, utilizing artificial intelligence to calculate the necessary delivery times for 1 million customers in Brazil and Mexico.
Furthermore, our Juntos+ app cell is capitalizing on our customer knowledge to optimize the user interface of our mobile app, considering user frictions, expectations, and objectives. In this way, we have improved the customer experience at every stage of the journey—from searching and browsing to gathering product knowledge and ordering, to consulting and confirming delivery status.
Our agile cells co-create a growing portfolio of digital and analytical solutions that accelerate the expansion of our omnichannel commercial platforms.
Our omnichannel multi-category strategy leverages our leading-edge supply chain enablers to enhance our customers’ experience when they interact with us, while evolving our capabilities to win in the market and the industry.
Digital Distribution
After the successful deployment of our Digital Distribution 2.0 platform throughout our Brazilian and Mexican operations, we began the implementation of this platform across our Colombia, Costa Rica, and Guatemala operations over the course of 2022. Addressing the entire strategic and tactical planning cycle of our secondary distribution process—from analytics to delivery route planning and execution—this enhanced platform features route traceability, a web-based app for supervisors, end-to-end supply chain network analysis, digital real-time control of our distribution operation, and interaction with customers to track their orders. Through our increasing operational discipline and use of these digital tools, we seek to continuously improve our customer service and the productivity of our delivery teams.
Through our Customer Control Tower, we monitor and manage our entire commercial and distribution operation, enabling both real-time and dynamic routing. With the deployment of dynamic routing across our secondary distribution fleet in Argentina, Brazil, Colombia, Costa Rica, Guatemala, Mexico, Panama, and Uruguay, we are able to offer 24/7 order entry. Thanks to this enabler, we enjoy the flexibility to plan vehicles’ routes on a daily, weekly, and monthly basis, thereby optimizing available delivery resources and distances traveled to serve our customers.
For more information on the positive environmental impact of dynamic routing see →Climate Action
With the evolution of our Digital Distribution 2.0 platform, we have completed the rollout of real-time routing across 100% of our Brazil and Mexico operations’ secondary distribution routes, serving 220 thousand clients per day. With real-time routing, we adapt our delivery process to unplanned daily events, constantly integrating and analyzing traffic, road, climate, and other conditions to define the most efficient delivery sequence and route, thereby fulfilling our sales promise while improving customer service and engagement.
Aligned with the deployment of our Digital Distribution 2.0 platform, we have implemented our web-based Delivery Supervisor App to enable delivery supervisors to better manage their teams in Brazil, Mexico, Panama, and Uruguay. By connecting our route monitoring tools and telemetry equipment, this app allows managers to not only make quick inquiries about routes, drivers, and customers, but also to act swiftly to account for any incidents or deviations during the execution of delivery routes.
Consistent with our omnichannel multi-category strategy, we further deployed our order-tracking platform to enable customers to track their orders—created on any commercial channel—from the moment of shipment to delivery.
Through our increased operational discipline and utilization of these digital tools, we look to continuously improve our customer service and our delivery teams’ productivity. For example, in Mexico, we implemented the My KOF Route project, a business initiative that processes key information from different strategic areas to generate added value and facilitate integrated operational teams management. During the year, we also explored the use of advanced analytics to predict customer service times, maximizing our route planning capabilities through a tool capable of serving all of our operations.
Warehouse Optimization & Digitalization
During the year, we continued with our warehouse optimization to enable our growing multi-category product portfolio and to increase our warehouses’ storage density and productivity, while avoiding significant capital expenditures (CAPEX).
We are transforming the way we analyze, design, and utilize our warehouses. Through the introduction of new concepts—from optimal height utilization to more fronts and less depths, and honeycombing effect reduction—our estimated increase in warehousing capacity is around 25,000 pallet positions, equivalent to an estimated CAPEX avoidance of US$30 million. Based on the methodology derived from a customized artificial intelligence (AI) platform, our teams developed several different algorithms and implemented optimizations across 16 operating units with positive results. Using this AI platform, we continued working on new warehouse design capabilities for pallet and case slotting, staffing, and docks optimization. Moreover, we plan to expand these capabilities to the rest of our territories and to explore optimization opportunities across the rest of our supply chain, from inventory to distribution.
We also continued the systematic deployment of advanced picking solutions, including both real and optimal picking. Utilizing voice and digital images, these advanced picking solutions improve our warehouses’ level of service through the assertive assembly of mixed pallets according to each client’s specific needs, maximizing load and route optimization while increasing productivity. By year-end 2022, we not only integrated real picking across 100% of our Brazilian operating units, but also rolled out this solution to 87 operating units across three different operations. We further finalized the implementation of optimal picking throughout all of our Brazilian operating units.
As part of our digital supply chain strategy, we defined the technological tools and applications behind our Manufacturing 4.0 strategy to ensure seamless manufacturing performance, while focusing on developing the capabilities to ensure operational responsiveness and efficiency.
| Line Performance |
Connected Workforce |
Digital Maintenance |
Digital QSE |
|
|---|---|---|---|---|
| Objectives | Improve bottling line reliability and productivity through deployment of line visualization platform | Digitize and automate operation model activities to create execution efficiency | Improve maintenance planning and execution processes through digital solutions that mitigate risk and maximize asset productivity and reliability | Implement future state of Quality and Safety evolution by leveraging digital solutions |
| Foundations | Digital Manufacturing Capabilities Development OT/IT Management and Architecture Cybersecurity |
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During the year, we further carried out proofs of concept, where we compiled insights about those technologies that will enable us to build scalable, digital capabilities. Starting in 2023, we will begin the deployment of use cases for different digital technologies and applications in Brazil, Colombia, and Mexico.
