Project C Manual

for Counters

1
Table of Contents:

Part I. Project Overview…………………………………………… 1

Part II. Coca Cola FEMSA Business Overview…………. 2
Part III. Items to be counted
 Full goods……………………………………………….. 3
 Raw Materials………………………………………… 5
 Empties…………………………………………………… 6
 Bad Orders (BOs)…………………………………… 9

Part IV. Detailed count procedures…………………………… 10

Sample Cases…………………………………………………. 12

Part V. Reminders to Counters…………………………………. 16

Annex A Project C Organizational Chart

Annex B List of Project C Locations

Annex C Forms

2
 I
PROJECT OVERVIEW
A. What is Project C?
Project C is an engagement between PricewaterhouseCoopers
Business Services Philippines Co. Ltd (PwC BSP) and Coca-Cola
FEMSA Philippines (the “Company”) which requires PwC BSP
associates and fixed-terms (counters) to assist in the Company’s
monthly inventory count and reconciliation of count results.
Associates and Fixed-terms will be working in the Company’s
Plants (production plants) and Distribution Centers nationwide
within weeks 1-3 of each month. The inventory count include
count of full goods (finished goods), containers (bottles and
cases), pallets, raw materials, and high value spare parts.

Total locations: 85 (Luzon- 58, Visayas- 14, Mindanao- 13)

B. What is our objective for Project C?

Project C aims to achieve the following:
 To ensure that the Company’s count procedures are properly
carried out in all count locations.

 To ensure the accuracy of the count results by facilitating the

reconciliation process and documentation of count results.

 To evaluate the effectiveness of the Company’s warehouse

and inventory processes.
 II
Coca Cola FEMSA BUSINESS OVERVIEW

A. About Coca-Cola FEMSA

Coca-Cola FEMSA Philippines, Inc. offers distribution and bottling
services for soft drinks. It distributes soft drinks, bottled water, and
juices, with outstanding brands, such as: Coca-Cola, Coca-Cola Light,
Coca-Cola Zero, Lift, Powerade, Real Leaf, Royal Tru, Samurai,
Sprite, and the bottled water brands Viva and Wilkins. The company
was formerly known as Coca-Cola Bottlers Philippines, Inc. and
changed its name to Coca-Cola FEMSA Philippines, Inc. in January
2013. The company was founded in 1979 and is based in Taguig City,
the Philippines. As of December 13, 2018, Coca-Cola FEMSA
Philippines, Inc. operates as a subsidiary of The Coca-Cola Company.
Source: https://www.bloomberg.com

B. Class of Inventory

Perpetual Inventory Method - Merchandise inventory and cost

of goods sold are updated continuously on each sale and purchase
transaction. Purchases are directly debited to inventory account
whereas for each sale two journal entries are made.

 Purchase of merchandise on account, Php 300,000

Merchandise inventory 300,000

Accounts payable 300,000

 Payment of freight on the purchase, Php 20,000

Merchandise inventory 20,000

Cash 20,000

 Return of merchandise purchased to supplier, Php 30,000

Accounts payable 30,000

Merchandise inventory 30,000

2
 III

ITEMS TO BE COUNTED

A. Full Goods

Full goods are inventory items that have undergone the manufacturing
process and are ready for sale or distribution to customers.

A.1 Returnable Glass Bottles (RGB)

RGB are products in which bottles/containers are
returned after consumption for cleaning and refilling.

3
A.2 Non-returnable Product (NRP)

NRP are products in which bottles/containers are not to

be reused in the future. This usually includes powdered
juices and items in plastic bottles.

4
B. Raw Materials (RM)
Raw materials are items that are used in the production of full goods. This
includes sugar, concentrates, caps and lids.

Concentrates
These items are counted per pallet.
The standard unit of measurement
for these is gallon.

Sugar
These items are counted per pallet.
The standard unit of measurement for
these is sack.

Calcium Hypochlorite (flakes)

These items are counted per pallet.
The standard unit of measurement for
these is gallon.

5
C. Empties
Empties include returnable bottles, shells/cases, and pallets.

6
 Pallets

Material # 90 Plastic pallet (1x1)

Material # 86 AKA SANCAR

Wooden pallet (1x1.2) RENTED

Material # 91 Plastic pallet (1x1.2)

7
Shell

8
D. Bad Orders (BOs)
BOs are non-salable finished products. A product is considered a BO once it
expires and cannot be restored back to its original form.
(Note: Do not forget to conduct a full count of the BOs.)

9
 IV
DETAILED COUNT PROCEDURES

 Briefing. A short briefing will commence at the start of the

inventory count procedure.

 Count sheets. Count sheets will be distributed to the counters

according to their assigned area before the count starts.

 Count tags. Count tags serve as an indication that a particular

group of items have been counted. This will be attached to the
inventory items indicating the quantity counted as agreed and signed
by both Finance and Operations representatives.

(Note: Do not start the count without count tags!)

*Sample of inventory count tag

 Count procedure. Finance counter, represented by PwC, is

expected to perform a simultaneous count with the Operations
counter after the briefing.

(Note: Finance counter should be independent from the Operations

counter. Erasure/s by any parties involved should be countersigned by both
the Finance team and the Operations team counters.)

10
 Finance team should ensure to reconcile individual count with the
Operations team before leaving the area counted.

(Note: Finalize totals and enclose the final count in a box.)

 Signed and validated count sheets. Ensure that all count sheets
(PwC counter and Operations counter) have been validated and
signed.

(Note: Do not sign the count sheet/s that contain/s items which were NOT
counted.)

Count Sheet 330MLALSCN1X24 Schw Tonic

106445
Name of Inventory
5 10 5

Material Number

Number of Pallets
counted

Number of Cases
counted

Number of Pieces
counted
280.21
Total

(Note: Never use DRAFT COUNT SHEETS.)

11
 SAMPLE CASES

Case 1:

The picture has five pallets.

Assuming one pallet
contains 20 cases of

1 2 Schweppes Soda
Water, the total number
of cases would be 100 (20
multiply by 5).

330MLALSCN1X24 Schw Tonic

106445

3 45 5 100

12
Case 2:

237MLGLBTR1x24 Sprite Do not count the incomplete

105859 case as full and count the
items on a per piece basis. As
13 shown in the picture, there
are only 13 pieces of Sprite
instead of 24. Loose pieces
should be converted to cases
when recording in the count
sheets.

*This should be noted in

checking the mathematical
accuracy of the counted
items.

.542

13
Case 3:

240MLGLBTR1x24 Coke
106427
12

If there are mixed

240MLGLBTR1x24 Sprite products in one case,
106428 count it on a per piece
basis and do not count
6 the dominant product
as one case.

Note: Rainbow SKUs

(combination of
different products)
240MLGLBTR1x24 Fanta should be counted per
case as long as the
106429 combination is
6 correct.

14
Case 4:

1LPLBTN1x12 MM PLPY ORG

If there are different products
placed in one pallet, make sure to 101607
count the pallet in the correct
product code. 1 7

330MLALSCN1X24 RTO
107105
80

15
 V
REMINDERS TO COUNTERS

 What to wear?

Top: Everyone should wear red/white/maroon shirt. Revealing

clothes are strictly NOT allowed.

Bottom: Wear rubber shoes and jeans. Tattered/ripped jeans are

strictly NOT allowed.

 What to bring?

Photocopy of one valid school or government ID with 3

signatures for pay slip purposes and PwC BSP ID for gate
entrance at the assigned location. Every counter must have a
calculator and ball pen with him/her.

 What is your schedule?

Counters should arrive at the count location on/before the time

set and communicated to them by their HQ and TLs.

 Who to contact?

If counters have any questions/concerns regarding the count,

contact the Team Leader assigned for that location. If not
available, raise your concerns to the HQ Lead>Senior
Associate>Manager.

Team HQ Lead Senior Manager

Lead Associate

Kindly refer to Annex A for the contact details.

16
 Compensation and Overtime Pay

- Compensation varies depending on the location. If there are

clarifications regarding the compensation package, please
communicate it directly to the Engagement Manager.

- Overtime pay computation

𝑛𝑜.𝑜𝑓 𝑂𝑇 ℎ𝑜𝑢𝑟𝑠
OT pay = (Basic pay x x 1.25)
8

Counters are compensated for the number of hours

rendered. Ideally, hours should always be productive. If
counter is done with the count, counters should ask the TL
for any other procedures to complete, if there is none, this
can be considered as the end time of the inventory count
procedure.

Overtime will be paid and discussed with the counter as the

TL hands over the pay slip. Contact your HQ Lead if
otherwise.

17
 Annex A
Project C Organizational Chart

Romeo Victor Vergara

Manager
0917-870-5832

Rea Ann De Jose

Senior Associate
0917-875-0217

Kenneth C. Aquino
Maria Loisa Navidad
HQ Lead
HQ Lead
Region I – Ilocos Region
Region IV A – CALABARZON
Region XIV - CAR
Region IV B - MIMAROPA
Region XVI – NCR
0905-595-5697
0917-841-0507

Myrafe Malpal
Ma. Samantha Crisanta Eliza Cardino
HQ Lead
HQ Lead
Region II – Cagayan Valley
Region III – Central Luzon
Region VI – Western Visayas
Region V – Bicol Region
Region VII – Central Visayas
0956-674-2712
0936-819-1833

Eliza Policarpio
HQ Lead
Region VIII – Eastern Visayas
Region XI – Davao Region
Region XII – SOCCKSARGEN
Region XIII – CARAGA
Region XV – ARMM
0995-329-9209

18
 Annex B
List of Project C Locations
EX- External Warehouse

DC- Distribution Center

PL- Plant

CW- Concentrate Warehouse

Inventory
Type LVM Region Area Location
San Miguel
4A Yamamura
EX LUZON CALABARZON LAGUNA Glass Plant
4A ABI - Asia
EX LUZON CALABARZON LAGUNA Brewery
4A Sta. Cruz Sales
DC LUZON CALABARZON LAGUNA Warehouse
Parañaque
Distribution
DC LUZON 16 NCR NCR Center
Antipolo Sales
DC LUZON 16 NCR NCR Warehouse
Bagumbayan
Sales
DC LUZON 16 NCR NCR Warehouse
Quezon City
Sales
DC LUZON 16 NCR NCR Warehouse
Meycauayan
Distribution
DC LUZON 16 NCR NCR Center
Malabon Sales
DC LUZON 16 NCR NCR Warehouse
DC LUZON 16 NCR NCR Leveflex
Lagro Sales
DC LUZON 16 NCR NCR Warehouse
Pampanga
3 CENTRAL Distribution
DC LUZON LUZON PAMPANGA Center
3 CENTRAL BPSI
EX LUZON LUZON PAMPANGA Warehouse
3 CENTRAL
EX LUZON LUZON BULACAN Old Malolos
3 CENTRAL Tarlac Sales
DC LUZON LUZON TARLAC Warehouse
19
 3 CENTRAL Subic
DC LUZON LUZON ZAMBALEZ Warehouse
Balanga
3 CENTRAL Distribution
DC LUZON LUZON BATAAN Center
3 CENTRAL Talavera Sales
DC LUZON LUZON NUEVA ECIJA Warehouse
2 CAGAYAN Cauayan Sales
DC LUZON VALLEY ISABELA Warehouse
2 CAGAYAN NUEVA Solano Sales
DC LUZON VALLEY VISCAYA Warehouse
Tuguegarao
2 CAGAYAN Sales
DC LUZON VALLEY CAGAYAN Warehouse
Baguio Sales
DC LUZON 14 CAR BENGUET Warehouse
Carlatan Sales
DC LUZON 1 ILOCOS LA UNION Warehouse
Urdaneta Sales
DC LUZON 1 ILOCOS PANGASINAN Warehouse
Bangued Sales
DC LUZON 14 CAR ABRA Warehouse
Silangan
4A Distribution
DC LUZON CALABARZON LAGUNA Center
4B Puerto Princesa
DC LUZON MIMAROPA PALAWAN Sales Ware
Dasmariñas
4A Sales
DC LUZON CALABARZON CAVITE Warehouse
4A Lipa Sales
DC LUZON CALABARZON BATANGAS Warehouse
4A Batangas Sales
DC LUZON CALABARZON BATANGAS Warehouse
CAMARINES Daet Sales
DC LUZON 5 BICOL NORTE Warehouse
Legaspi Sales
DC LUZON 5 BICOL ALBAY Warehouse
Lucena
4A Distribution
DC LUZON CALABARZON QUEZON Center
PL LUZON 1 ILOCOS PANGASINAN Calasiao Plant
Villasis
EX LUZON 1 ILOCOS PANGASINAN Warehouse
Lingayen
EX LUZON 1 ILOCOS PANGASINAN Warehouse
4A Canlubang
PL LUZON CALABARZON LAGUNA Plant

20
 4A Canlubang
PL LUZON CALABARZON LAGUNA Plant
4A Calamba
EX LUZON CALABARZON LAGUNA Warehouse
2 CAGAYAN
L LUZON VALLEY ISABELA Ilagan Plant
2 CAGAYAN
PL LUZON VALLEY ISABELA Ilagan Plant 2
2 CAGAYAN CBC CLOSED
EX LUZON VALLEY ISABELA PLANT
ILOCOS
PL LUZON 1 ILOCOS NORTE Ilocos Plant
4A
PL LUZON CALABARZON CAVITE Imus Plant
3 CENTRAL Meycauayan
PL LUZON LUZON BULACAN Plant
3 CENTRAL
EX LUZON LUZON BULACAN BBC
CAMARINES
PL LUZON 5 BICOL SUR Naga Plant
CAMARINES
EX LUZON 5 BICOL SUR Naga Whse
3 CENTRAL San Fernando
PL LUZON LUZON PAMPANGA Plant
3 CENTRAL San Fernando
PL LUZON LUZON PAMPANGA Plant 2
Nirobi
3 CENTRAL Extension
EX LUZON LUZON TARLAC Warehouse
4A
PL LUZON CALABARZON LAGUNA Sta. Rosa Plant
4A
CW LUZON CALABARZON LAGUNA Sta. Rosa Plant
4A
EX LUZON CALABARZON LAGUNA Royal Cargo
4A
EX LUZON CALABARZON CAVITE Tanza Whse
4A General Trias
EX LUZON CALABARZON CAVITE Whse

21
 Masbate Sales
DC LUZON 5 BICOL MASBATE Warehouse
6 WESTERN NEGROS
PL VISAYAS VISAYAS OCCIDENTAL Bacolod Plant
6 WESTERN NEGROS Alijis
EX VISAYAS VISAYAS OCCIDENTAL Warehouse
6 WESTERN
PL VISAYAS VISAYAS ILOILO Iloilo Plant
6 WESTERN
EX VISAYAS VISAYAS ILOILO IBI Warehouse
6 WESTERN Zarrage
EX VISAYAS VISAYAS ILOILO Warehouse
7 CENTRAL Cebu City Sales
DC VISAYAS VISAYAS CEBU Warehouse
7 CENTRAL Consolacion
DC VISAYAS VISAYAS CEBU Warehouse
7 CENTRAL
PL VISAYAS VISAYAS CEBU Cebu Plant
7 CENTRAL Cebu-Wilkins
PL VISAYAS VISAYAS CEBU Plant
7 CENTRAL Tagbilaran
PL VISAYAS VISAYAS BOHOL Plant
7 CENTRAL S & CU
EX VISAYAS VISAYAS BOHOL Warehouse
8 EASTERN Ormoc Sales
DC VISAYAS VISAYAS LEYTE Whouse
8 EASTERN
PL VISAYAS VISAYAS LEYTE Tacloban Plant
8 EASTERN Burauen Mktg.
EX VISAYAS VISAYAS LEYTE Corp.

22
 9 ZAMBOANGA ZAMBOANGA
PL MINDANAO PENINSULA ZAMBOANGA PLANT
9 ZAMBOANGA ZAMBOANGA
PIER MINDANAO PENINSULA ZAMBOANGA PIER
ZAMBOANGA
9 ZAMBOANGA LIM BROS.
EX MINDANAO PENINSULA ZAMBOANGA CORP.
10 NORTHERN LANAO DEL ILIGAN SALES
DC MINDANAO MINDANAO NORTE WAREHOUSE
MISAMIS
10 NORTHERN MISAMIS ORIENTAL
PL MINDANAO MINDANAO ORIENTAL PLANT
DAVAO
DISTRIBUTION
DC MINDANAO 11 DAVAO DAVAO CENTER
DAVAO 1
PL MINDANAO 11 DAVAO DAVAO PLANT
ULAS
EX MINDANAO 11 DAVAO DAVAO WAREHOUSE
DAVAO 2
PL MINDANAO 11 DAVAO DAVAO PLANT
TAGUM
DISTRIBUTION
DC MINDANAO 11 DAVAO DAVAO CENTER
12 SOUTH GENSAN
DC MINDANAO SOCCKSARGEN COTABATO REGION DC
BUTUAN
AGUSAN DEL DISTRIBUTION
DC MINDANAO 13 CARAGA NORTE CENTER
COTABATO
SALES
DC MINDANAO 15 ARMM MAGUINDANAO WAREHOUSE

23
 Annex C
Forms

Inventory count time sheet form

Name of Counter BOs

Dasmarinas Sales Warehouse x
18-Nov-18
Arrival and
departure time
of the PwC TLs
or counters
validated by the
client’s 6:00am
staff/guard 8:00pm
30 mins

6:30am
Start and end 11:00am
time of the count
process
validated by the
operations
counterpart

Joevy T. Carretero, Jr. Maria Loisa Navidad Rea Ann De Jose

18-Nov-18 18-Nov-18 18-Nov-18

*Should be filled up by the TL and FT assigned per location

24
*Pay slip form

25
 *Observation Form

Observation Details Implication/ Action Status as of

Impact Period 10
Count

Sample:
Status as of
Period 10
Observation Details Implication/Impact Action count
No count tags
were used for all
inventory items Resolved.
counted. Upon Mandatory Printed count
inquiry with the Some items may use of count tags were
Absence of Operations team, be counted not only tags as per provided and
count tags since there are once or may not be count used during
only few inventory counted at all. protocol. period 10
items stored in the count.
warehouse, it has
been a practice
not to use count
tags.
Resolved. As
per
BOs/NCPs were Warehouse
stored in the same design,
area where good This may result to Inventory Bos/NCPs are
inventory items improper tagging in items being stored
No proper were stored. the count sheet should be and kept on a
segregation Furthermore, that may result to stored and Bin location
of inventory some items such variances in the segregated near FG
items as Wilkins 500mL, reconciliation. properly. items, also
Coke, Royal and these were
Sprite 500mL did properly
not have labels labeled as
that they were NCPs for
BOs/NCPs. Trade, Core
and
Warehouse.

26
 The assigned
counter from
Operations, Jayson
Cabungcal, had to
pick up Ms. Evelyn,
Finance Head, at the
airport in the middle
of the count so Noel
Vera, IMS/MLS and All counters Resolved. No
also the reconciler, and such incident
took over the count. reconcilers happened
After 30 minutes, should be during Period
No Jayson Cabungcal This may result to familiar with 10 count. Sir
segregation came back and delay due to the count Jayson
of duties continued the rest of reperformance of protocol Cabungcal
the count.
count. especially was the
During the recon on the Warehouse
between the limitations counter
counters from PwC on their representative
and Operations, roles. during the
some items counted count day.
by Noel Vera did not
tie up with the PwC
Representative's
count. Because of
this, the count team
took more time in
rechecking the items
counted by Noel.
Delay in the The inventory Results to delay in The New
start of count started at the start time operations
Inventory 9:30am instead of should be
count the usual 8:00am. more
The delay is prepared
mainly caused by next time
the waiting time of knowing
the certain that an
shipments to be inventory
pulled out in the count will be
warehouse. conducted

27
 Management
should be
Probable that keen and
Loose pallets strict on the
were noted 1. Pallets will be proper piling
Loose around count misplaced. Such will of the
pallets area, which were result to reduction in unused
New
around not included in their inventory. pallets. As
count area their stack piles of 2. Damaged. Loose there's a
pallets behind the pallets can be present risk
covered area. damaged due to to the
incorrect stacking. damage on
their
property.

28