Each year this brewer, one of the largest in the world, spends more than $5 billion on materials—from ingredients such as malt and barley to glass and cans to other essentials such as marketing items and freight.
Historically, it carried out its purchasing activities on a regional level. While this approach had worked well over the years, company leaders believed the company could improve efficiencies and effectiveness by centralizing its procurement functions.
The company had recently established a new global purchasing organization. And while the savings were significant, within two years of the new organization’s launch, less than a third of the brewer’s global spending was being channeled through the new organization. For help in architecting—and then implementing—an integrated global procurement operating model that would leverage its considerable scale and global expertise, the company turned to its long-time service provider, Accenture. Several factors influenced the decision, including Accenture’s deep strategic procurement skills and insights, its team and its reputation for helping other alcoholic beverage companies successfully transform their procurement operating models.