Ko 2020 Global Procurement Alignment

Working As An Integrated

Global SystemRon LewisVice President, North AmericaCoca-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

0 20 40 60 80 100

% System

Spend In

CEPG

Closures & Labels

Glass

Metal

PET

Sales & Marketing Equipment

Sweeteners

Total

CEPG Operates On A Global Scale

CBPC

CCBSS

AFBCC

Promesa

EAJPF

CCBSCEntecom

$19 Bn = 2/3 Of Global Buy

Unique Rules Of Engagement

Direct and validate

program strategies

Approve strategies and business

plans, hold teams accountable

and measure performance

Empowered to negotiate for all

members, accountable for

delivering results

OPERATING

COMMITTEE

PROGRAM

TEAMS

PROGRAM

SPONSORS

How CEPG Adds Value

Sustainability And Innovation

Global Supplier Relationships To

Leverage Scale

Commodity Price Risk Management Expertise

Deep Category

Knowledge

Alignment To Speak

To System And Suppliers

With One Voice

Driving CEPG To The Next Level

Operational Excellence

Sustain Competitive Advantage

Expanding Scope

TODAY 2020

We Are One Of The World’s Largest Consumer

Goods BusinessesESTIMATE

$50 Bn

Assets

$8 Bn

Capital

~$6-8 Bn(raw materials inventory)

~$10-15 Bn(plants)

~$25-30 Bn(warehouses & fleet)

Per Year, Current Business Model

~$6 Bn(cold drink equipment)

$64 BnCost

> $19B system controlled spend

900+ manufacturing operations

~300 contract fillers

8,500 warehouses

200,000 delivery trucks

65 MM cases/day

16 MM distribution points

2.4 MM vendors

7 MM coolers

~$8 Bn(12.5%)

~$8 Bn(12.5%)

~$16 Bn(25%)

~$32 Bn(50%)

BUY MAKE MOVE SERVE

We Are One Of The World’s Largest Consumer

Goods Businesses

$50 Bn

Assets

$8 Bn

Capital

~$6-8 Bn(raw materials inventory)

~$10-15 Bn(plants)

~$25-30 Bn(warehouses & fleet)

Per Year, Current Business Model

~$6 Bn(cold drink equipment)

$64 BnCost

> $19B system controlled spend

900+ manufacturing operations

~300 contract fillers

8,500 warehouses

200,000 delivery trucks

65 MM cases/day

16 MM distribution points

2.4 MM vendors

7 MM coolers

~$8 Bn(12.5%)

~$8 Bn(12.5%)

~$16 Bn(25%)

~$32 Bn(50%)

BUY MAKE MOVE SERVE

ESTIMATE

We Are One Of The World’s Largest Consumer

Goods Businesses

$50 Bn

Assets

$8 Bn

Capital

~$6-8 Bn(raw materials inventory)

~$10-15 Bn(plants)

~$25-30 Bn(warehouses & fleet)

Per Year, Current Business Model

~$6 Bn(cold drink equipment)

$64 BnCost

> $19B system controlled spend

900+ manufacturing operations

~300 contract fillers

8,500 warehouses

200,000 delivery trucks

65 MM cases/day

16 MM distribution points

2.4 MM vendors

7 MM coolers

~$8 Bn(12.5%)

~$8 Bn(12.5%)

~$16 Bn(25%)

~$32 Bn(50%)

BUY MAKE MOVE SERVE

ESTIMATE

We Are One Of The World’s Largest Consumer

Goods Businesses

$50 Bn

Assets

$8 Bn

Capital

~$6-8 Bn(raw materials inventory)

~$10-15 Bn(plants)

~$25-30 Bn(warehouses & fleet)

Per Year, Current Business Model

~$6 Bn(cold drink equipment)

$64 BnCost

> $19B system controlled spend

900+ manufacturing operations

~300 contract fillers

8,500 warehouses

200,000 delivery trucks

65 MM cases/day

16 MM distribution points

2.4 MM vendors

7 MM coolers

~$8 Bn(12.5%)

~$8 Bn(12.5%)

~$16 Bn(25%)

~$32 Bn(50%)

BUY MAKE MOVE SERVE

ESTIMATE