ANNUAL REPORT
2019

    ESPAÑOL

FEMSA STRATEGIC

BUSINESSES

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vehicles owned

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delivery points
per week

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square meters of warehousing capacity

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clients in seven countries

* Solistica’s data

In addition to our core business segments, FEMSA operates several strategic businesses that amplify our competitive advantage. Providing logistics, transportation, cooling systems, and foodservice solutions to FEMSA’s core businesses and other companies, these businesses include: Solistica and AlPunto.

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vehicles owned

0 +
delivery points
per week

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square meters of warehousing capacity

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clients in seven countries

* Solistica’s data

Solistica is a third-party logistics (3PL) provider that serves more than 4,000 clients in seven countries.

As the largest company within the FEMSA Strategic Businesses by revenue, Solistica is a third-party logistics (3PL) provider that serves more than 4,000 clients in seven countries. Since our founding in 1998, we have grown and evolved, and today, our more than 23,000 Solistica employees offer personalized and comprehensive solutions in Transportation, Warehouse, and other Value-added Services.

Solistica’s current client portfolio is primarily comprised of Fortune 500 companies across the following key industries: pharmaceuticals, automotive, technology, and consumer goods, among others. In addition, approximately 30% of our business is made up of the broad range of logistics and vehicle maintenance services we deliver to fellow FEMSA-affiliated companies. This includes managing primary distribution for Coca-Cola FEMSA and Heineken (that is, transferring beverages from bottling and brewing plants to distribution centers) and secondary distribution for FEMSA Comercio’s Proximity Division (that is, delivering products from OXXO distribution centers to OXXO stores). Solistica is proud to leverage our world-class logistics expertise and optimization strengths to be a trusted component of FEMSA’s supply chain.

Our vision is to continue strengthening our regional focus to become the leading logistics provider for Latin America.

Commitment to Safety
At Solistica, we are committed to ensuring the safety of all our employees and everyone connected to the supply chains that we support. By fostering a culture of safety across the organization, we strive to eliminate dangerous working conditions, accidents, and injuries. In addition to taking steps such as ensuring vehicles are equipped with advanced collision avoidance technology, we also implement a variety of management best practices. This includes regularly scheduled “safety briefings” to discuss safety issues with employees and “safety walks” to inspect site surroundings. To continuously improve performance and monitor safety, we also provide ongoing employee trainings and regularly conduct site audits.

Coffee

Consolidating our Capabilities
In 2019, we took bold steps to enhance our customer value proposition.

  • In recognition of the importance of putting our clients at the center of everything we do, we developed a comprehensive Business Model structured by our three product areas (Transportation, Warehousing, and Other Services) which serves to standardize our offerings across regions. Supported by three transversal enablers—technology, operational efficiency, and commercial efficiency—the model guarantees an integrated and standardized operation across our regions. It also helps to ensure the efficiency of resources through our Global Business Service (GBS) and business partners.
  • As part of our Global Commercial Model—which aims to move the company towards a unified sales effort focused on clients so we can work as a single team—we implemented a Customer Relationship Management system to enhance team collaboration and better manage sales leads. We also deployed a commercial methodology called “COMMET” that focuses on speeding up the sales cycle to close more high-quality opportunities.
  • We integrated new technological tools to operationalize our Global Commercial Model and strengthen our competitive advantage.
  • We focused on operational excellence and created a new role that oversees four key operational areas: safety, quality, performance management and continuous improvement. Through this role, we aim to create a differentiating competitive advantage for Solistica.
  • We completed the acquisition of AGV, a leader in value-added warehousing and distribution in Brazil, which increases our warehousing capability by more than 300,000 square meters in 15 Brazilian states. Combined with our existing less-than-truckload logistics platform, the AGV acquisition makes Solistica the first fully integrated 3PL solution provider in the Brazilian market. Regionally, the transaction represents a vital building block in our overall strategy of being a competitive industry player with both distribution and warehousing capabilities. AGV will generate new synergies, complement the existing platform, and significantly enhance Solistica’s customer value proposition in Brazil and the region .

In 2019 we focused on operational excellence and created a new role that oversees safety, quality, performance management, and continuous improvement.

Solistica’s Business Model ensures
cross-functional collaboration and alignment to deliver a more unified sales effort as a single team.

Sustainable Mobility
As a logistics company, we are highly aware of the environmental impacts of our operations, including the greenhouse gas (GHG) emissions that result from the fuel combustion in our vehicles. Through our Sustainable Mobility program, we strive to reduce our reliance on fossil fuels by utilizing alternative fuels and optimizing our transportation routes.

We also optimize our routes using a transportation management system that automates business processes and integrates all planning into a single application. With real-time tracking, mapping, and planning capabilities, we identify inefficiencies and opportunities to save time, costs, resources, and GHG emissions.

Transporte Limpio
In 2019, for the ninth consecutive year, Solistica was recognized by Mexico’s Ministry of Environment and Natural Resources (SEMARNAT) and the Ministry of Communications and Transportation (SCT) with the “Transporte Limpio” (“Clean Transport”) award for achievements to lower industry fuel consumption and GHG emissions.

Solistica was recognized for its efficient distribution practices in 2017-2018 to FEMSA‑affiliated customers: Coca-Cola FEMSA, HEINEKEN México, and OXXO. Through its Sustainable Mobility program, it avoided the issuance of 281,975 tons of CO2 and avoided fuel consumption equivalent to 103,659,386 liters.

 
  

Sustainable Features
Solistica

People
Career development

  • Training and development: 517,470 hours of training
  • More than 20,000 jobs

Sustainable services
Integrated logistical solutions

  • Legal Compliance
    • Zero environmental fines
  • Comprehensive safety system
    • 70,994 hours of training in occupational health and safety
  • Certifications:
    • ISO 9001-2015 *
    • ISO 39001-2001 **
    • ISO 14001-2015 ***
    • Gold seal for good practices and commitment to safety of children on the road. ****

 

* Scope for some operations in Brazil, Colombia and Mexico.
** Scope for some operations in México.
*** Scope for some operations in
Colombia and Brazil.
**** Scope for some operations in Colombia.

Circular economy
Redesign, reduce, reuse, repair, recover and recycle

  • Reduce
    • Reduced waste generation by 9%
  • Recycle
    • Recycled 44% of waste generated

Sustainable actions
Addressing solutions to global challenges

  • Route optimization
    • 281,975 metric tons of CO2 avoided
  • Environmental impact of transportation
    • 9 consecutive years of Clean Transport Certification
  • Water management
    • 1,874,993 liters of rainwater captured and reused for truck washing
 

In the Mexican state of Queretaro, FEMSA Strategic Businesses represent the second most important employer in the region.

 

PTM operates a recycling line which can process 2,000 kilograms of material per hour. Learn more in this video

Other Businesses
FEMSA Strategic Businesses also include operations related to the food service industry, which drive significant economic and social value. For example, in the Mexican state of Queretaro, FEMSA Strategic Businesses represent the second most important employer in the region. Each company serves diverse customer bases and also supports other FEMSA business units.

 AlPunto 
A group of companies focused on providing equipment solutions, material handling and other comprehensive services at points of sale. In alignment with FEMSA’s mission, AlPunto aims to create social and economic value in the communities in which it participates by delivering innovative products and services that guarantee the highest return on clients’ assets. Four of the companies that make up AlPunto include:

Imbera
As the world’s largest commercial refrigeration manufacturer with facilities in Mexico, Colombia and Brazil, Imbera manufactures equipment for the soft drink, beer and food service industries, including coolers, food processing, storage and weighing equipment. As of the end of 2019, Imbera had an annual capacity of approximately 1 million units, 30% of which were delivered to Coca‑Cola FEMSA, with the remainder being sold on the open market to customers in 56 countries. Because innovation and customer satisfaction are strategic priorities for Imbera, we are committed to developing efficient products that address global challenges. For example, over the last 10 years, Imbera has reduced the energy consumption of its coolers by more than 85%. In addition, Imbera’s coolers use the eco-friendly R290 refrigerant, which has a low environmental impact.

PTM
Through its state-of-the-art design and manufacturing facilities, PTM designs, manufactures and recycles plastic products that support operational and marketing strategies for materials handling, automobiles and food and beverage production. In addition to serving diverse external customers across Latin America, PTM also supports FEMSA’s core businesses.

PTM operates a recycling line which can process 2,000 kilograms of material per hour. Learn more in this video

 

Torrey
Through an extensive distributor specialist network, Torrey delivers high-quality food processing, preservation and weighing equipment for butcheries, small retailers, supermarkets, convenience stores, hotels and restaurants in more than 50 countries worldwide.

Cooking Depot
For 50 years, Cooking Depot has been meeting the kitchen equipment and accessory needs of the market’s points of sale and consumption centers through continuous innovation in service and by making hundreds of useful products available to its customers.

In 2019, a new recycling plant was opened to collect end-of-life refrigerators and reuse or recycle as much as 90% of their interior parts.

Accelerating the Transition to the Circular Economy
The circular economy promotes the responsible and cyclical use of resources. It is designed to encourage the reduction and reuse of its supplies and represents an opportunity to reinvent the way the business finds, uses and disposes the materials it requires to offer its products and services.

At FEMSA, we are developing innovative opportunities in our business model to progress towards a circular economy. Across the FEMSA Strategic Businesses division, we are rethinking our product design: recovering waste, increasing recycling and reducing packaging materials. The following are some of the results:

  • AlPunto is committed to supporting measures for the responsible disposal of its equipment. In 2019, a new recycling plant was opened to collect end-of-life refrigerators and reuse or recycle up to 90% of its components. Once collected, the refrigerators are completely dismantled and all metals, plastics, electrical components and fuels are carefully separated. A comprehensive monitoring, tracking and verification program is then employed to ensure that all components are reused or recycled rather than sent to a landfill.
  • PTM plays a key role in finding solutions to the global waste challenge by recovering more than 27,000 tons of plastic annually (equivalent to 66% of the plastic used in PTM’s operations per year)—including bottle caps collected by Coca-Cola FEMSA that would otherwise be considered waste. In 2019, 90% of PTM’s manufactured products—including pallets, ice chests, furniture, and plastic crates, among others—were made from recycled raw materials.