14. September 2021
New augmented reality technology helps us cope with the complexity of our expanded 24/7 portfolio. Technology helps our warehouse colleagues extract inventory from the warehouse and package them for customer delivery, improving the speed and accuracy of our service. • We have installed photovoltaics (solar energy) in our factories in Oricola, Nogara and Marcianise in Italy. We have also invested in an advanced multi-tier inventory optimization tool and have fully implemented it. It supports the management of growing supply chain risks due to economic uncertainty, customer expectations and demand volatility. Multi-stage inventory improvement helps to strengthen service levels while optimal working capital. Coca-Cola HBC also divides suppliers into three categories based on criticism and potential opportunities: Critical Suppliers Group are those that meet one of the following criteria: high percentage of expenses, critical components (e.g. sweeteners, juice, resin, cans, glass, preforms, rents, aseptic packaging), limited alternatives and partnerships that support our business strategies. Countries strategic suppliers are those of strategic importance at local or regional level.
Group Critical and Country Strategic Suppliers are considered critical to the overall competitiveness and success of Coca-Cola HBC. Tactical suppliers represent low-volume and/or low-expense suppliers who provide goods or services for which many alternative sources are available, allowing for a flexible delivery base. We attach great importance to establishing partnerships with suppliers with delivery points in our countries, both multinational and local, while developing strong local suppliers in our territories. These efforts support our local sourcing strategy and contribute to socio-economic development in the countries in which we operate. These suppliers contribute significantly to our business and cover key markets such as Russia, Nigeria, Italy, Romania and Poland. Coca-Cola HBC`s annual spending with suppliers in 2019 reached €3.3 billion in direct and indirect and Appr spending. €5.0 billion, including concentrates, cold beverage equipment and commercial goods. Our practice is to source locally, provided that goods and services are available to meet our requirements and quality standards in an economically viable manner. New suppliers must prove that they comply with the SWP before being admitted as an approved supplier. The company reserves the right to terminate an agreement with any supplier who is unable to prove compliance with the SGP requirements.. . .