Budweiser APAC – Brochure 2020

Budweiser APAC: bringing people together for a better world through procurement Project partners

Budweiser APAC: bringing people together for a better world through procurement Jan Clysner, VP of Procurement and Sustainability, explores how procurement and sustainability go hand in hand as the company looks to create a better world

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D al e Bent o n Gr eg Chu r c h ill

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hat does sustainability mean to a business? What role can and should procurement play

in defining it and acting upon sustainable initiatives? As we talk of the procurement speak mostly around technology and a business-wide recognition that procurement is more than the back-office function of yesteryear. But where does sustainability come into the equation? For Budweiser APAC, which is part of AB InBev, operating as the largest and a fast growing beer company in Asia Pacific the brewing, importing, marketing, distributing and selling of more than 50 beer brands is achieved through a supply chain and procurement ecosystem that has sustainability embedded

actors to enable the change we want to

deeply throughout. “All of our procure-

bring to drive our sustainability agenda. ”

ment activities revolve around cost, supply

AB InBev has been a global steward for

security, quality, innovation and creating

sustainable action for many years and

efficiencies,” explains Jan Clysner, VP of

recognises its leading position to leave the

Procurement and Sustainability. “Running

world a better place for future generations

right alongside that is our sustainability

and in 2018 the company launched its most

agenda, which we try to embed as much

ambitious sustainability 2025 goals yet.

as possible in our procurement strategies

These goals include; Smart Agriculture

and our business going forward. One is

(100% of direct farmers will be skilled,

connected with the other. It's not that pro-

connected and financially-empowered),

curement is a different animal from sustain-

Water Stewardship (100% of communities

ability. They're very closely connected

in high stress areas will have measurably

and going forward, I see the connec-

improved water availability and quality),

tion growing further and getting closer

Circular Packaging (100% of products

and closer. Indeed our suppliers are key

will be in packaging that is returnable or

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BUDWEISER APAC

made from majority recycled content)

“Ultimately, in order to achieve our

and Climate Action (100% of purchased

goals as a business, we need the right

electricity will be from renewable

suppliers who will allow us to grow.”

sources; and a 25% reduction in CO2 emissions across value chain).

Looking at the APAC market, Clysner highlights that a large proportion of

For Clysner and Budweiser APAC,

suppliers had to be developed from

procurement is key to achieving these

a supply security, quality and innovation

goals. “At the end of the day, we produce

perspective. This is where procurement’s

and we sell beer. It's as simple as that,

much more integrated role within the

and we're supporting the process,” he

business comes to the fore as he recog-

says. “But it has been much more than

nises that it is about how procurement

just supporting. We are truly part of the

can support that it’s brands, both producing

business, being part of the discussions,

and selling them, are doing the right things.

the decision-making and the strategy

“The brand is the face towards consum-

including sustainability to ensure we still

ers. It’s about doing the right things with

produce and sell beer 100+ years from now.

our brands, also from an environmental w w w. c p o s t r a t e g y. c o m

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w w w. s h a n y i n g p a p e r.c o m

“A global leading provider of integrated green package solutions�

As a listed company (stock code: 600 567), Shanying International Holdings Co., Ltd. (Shanying International) is an international enterprise integrating industrial internet, comprehensive utilization of green resources, production of industrial and special-purpose paper and package product customization. Our industrial layout covers China, the US, the UK, Sweden, Norway, the Netherlands, Japan and Australia, with one industrial internet platform, 10 manufacturing enterprises of industrial and special-purpose paper, 30 enterprises of package product customization and 20 international and domestic trading enterprises of renewable resources at home and abroad. In 2020, we ranked 395th amongst the Top 500 Enterprises of China selected by Fortune.

Shanying International is an environmentally friendly enterprise and we assume our social responsibility in areas such as carbon emission reduction, environmental protection and sustainable development, pursuing ecological benefits for the industry, the natural world and the wider society. We realize an efficient utilization of new energy with storage sheds for raw materials of photovoltaic power generation projects. Our self-built thermal power plants not only satisfy our own needs in production, but also provide clean energy to surrounding enterprises to realize an effective utilization of resources and each year we recycle 4.50 million tons of regenerated fiber and protect 200,000 hectares of forestry. Taking scientific and technological innovation as our core driving force, we promote the construction of intelligent factories by blending digital, network and intelligent technologies into each and every process of our intelligent, environment-friendly, flexible and sustainable manufacturing.

In 2006, the Packaging Business Division of Shanying International became a strategic

supplier of cartons for Budweiser Asia-Pacific.

Affiliated to the Packaging Business Division of Shanying International, Xiangheng Package owns a top-notch Package Printing Engineering R&D Center, a CNAS-certified professional laboratory, and 30 wholly owned subsidiaries specialized in the production of paperboard and carton in different provinces and municipalities of China. Depending on our full industrial chain advantages, our package production capacity has reached 2 billion ㎥/year and our products are widely applied in different industries such as household appliances, electronics, food and beverage, chemicals, medicine, garments, shoes and hats, hardware and auto parts. Our clients include Budweiser, Danone, Wal-Mart, Home Depot, Target, Dell, BOE, Foxconn, Philips, UPS, SC Johnson Wax, Kao and Haier.

Shanying International has cooperated with Budweiser for nearly 15 years and today we provide the dozens of Budweiser breweries in China with cartons of around 120 million ㎥ each year. We have established a firm relationship of interaction and mutual trust with Budweiser and in new forms of business with sustainable development, we provide them with integrated package solutions, covering creative package design, structural optimization design, package business consulting, package printing technology training, production & manufacture, value-added service of customer experience, order distribution system design, and carton production process improvement. In the future, we will provide Budweiser with green package design schemes of individuality, a light weight, reusability, recyclability, renewability and degradability (3R1D), in accordance with our independently developed guides to the transport packaging design of various products and based on such big data platforms as the Buffer Coefficient and Energy Absorption Database.

point of view and bring purpose to our

lost in translation. “Doing the right thing

brands with our sustainability agenda,”

sounds so easy on paper and indeed it

he says. “We have a responsibility as a big

can be,” he says. “It's about recognising

entity, we use resources and we want to

your responsibility between the brack-

use them in the most efficient way, and

ets and looking at the levels within your

at the same time have a positive impact

value chain and implementing the right

on our society and environment.”

techniques in order to deliver on the

This idea of moving beyond simply doing the right thing \ and into a position

promise of real sustainable change.”

The challenge of working towards

of having a positive impact is something

sustainability targets is that these targets

that is extremely close to the heart for

and the very definition of sustainability is

Clysner, and with a consumer base that

fluid, as it shifts for each and every part of

is becoming increasingly switched on

the procurement and supply value chain.

to the environmental responsibilities of

Budweiser APAC works with companies

businesses, the ‘right thing’ can easily be

in paper and cardboard, glass, agriculture

Established in 1987, Huaxing Glass has grown to a world-class integrated company with 15 manufacturing locations, 40 furnaces, 202 production lines as well as global famous customers, offering a comprehensive range of custom glass bottles service with various colors and shapes ranging from Extra Flint, Flint, Clear, Amber, Emerald Green and Printing glass bottles to complete Glass Design, Manufacture and Service. For customer services or to find out more about your business opportunities, please contact Jasmine Lim (E linyan@hxbl.com).

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UDWEISER APAC T B0086 139 2314 5263 (Mr. Chen Wei) | E linyan@hxbl.com (Jasmine )

“ Sustainability is in our hands. It’s up to us to manage and focus on because we have the knowledge or we know whom to work with to get it done” — J A N C LY S N E R , V P P R O C U R E M E N T A N D S U S TA I N A B I L I T Y, B U D W E I S E R A PA C

- all very different raw materials with their

feet. All of them are driven by the same

own process in place. Their individual

vision and this huge network with vary-

understanding of and capabilities around

ing degrees of maturity on this journey

sustainability is different. Clysner adds;

is something that Clysner can tap into

“That's where we aligned all our four key

in order to identify and apply best prac-

goals. Smart Agriculture, which is water

tices in his own region. This comes down

and elements which are key ingredients

to the way in which the business is struc-

for our products. Our products are our

tured. Sustainability in procurement is not

beers, which is packaging and circle of

spoken of or handled as an independent

packaging. One way or the other, you need

category, instead Clysner has people in his

a packaging material, carry it, to bring it

team that are procurement and sustaina-

to your consumers, and of course, there’s

bility focused that have either a regional

our carbon footprint. Our carbon footprint

or countrywide responsibility. These

stretches right from the farmers, all the

procurement people, no matter here they

way up to and including the refrigeration

are situated in the world, have a coun-

required to deliver it cold to our consumer.

terpart that they can communicate with.

“The targets are close to our core business,

“There is a lot of global interaction within

and there we can truly make a difference now,

procurement for many reasons. Category

and start making a difference going forward.”

managers discuss global sourcing and

As a global entity, AB InBev has businesses

supply strategies and they also interact to

the world over. Some of these businesses

learn and share best practices. That's how

are further along this sustainability journey

we treat sustainability as well,” he says.

than others, some are just finding their

“Of course it varies to a certain extent, 9

but ultimately we have a fairly flat structure where every counterpart in my organization knows who to go to, whether it’s day-to-day if it's very integrated or less rigid or on a monthly basis if it's about best practice sharing. That's where our global colleagues are very important for us. They can help us to get extremely quick visibility on good examples that are happening across the world, disseminate knowledge and bring them to Asia, or at least give the visibility where we can then see it would make sense to apply something similar or help us with the implementation.”

This flat structure that Clysner points to proves crucial in not only establishing, but truly fostering a culture within procurement and the broader business. This culture is defined by our 10 key principles that sit at the very core of the business: “These principles are not just something that we pin up on the wall and say this is our company culture. We live and breathe them each and every day. It's about ownership and leading by example,” he says.

“We try to give people clear targets. People are, obviously, motivated to deliver on their targets, so we have to make sure that our people have the right targets. If people have the right targets, the right mindset and the right ownership then the right things are happening.”

Procurement is a relationship based environment and people are crucial to striking and fostering the right relationships with key suppliers so that when it comes to driving growth, change and in this instance sustainable responsibility, these relationships are formed around trust and mutual respect. Budweiser APAC of course has a huge supplier footprint from farmers to manufacturers and distributors and each relationship has its own nuances and complexities. It's important for Clysner to highlight this and stress 10

BUDWEISER APAC

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that there is no ‘one size fits all’ approach

the right moments to them,” he says.

to any of them. He points to the relation-

“For those individuals, it's much more

ship with the farmers as an example.

focused on cooperation with these farm-

“With farmers it's a very particular

ers, and making sure that we can provide

working relationship, because it's not

support to them. You never know with the

your traditional negotiation like we do

harvest. There's not a single year which is

with some of our big suppliers. In India

the same as the previous, but you can do

we've got teams that are 100% focused

things to maximize the harvest. Because

on those farmers. We give them targets

if you maximize the harvest, it's good for

such as they have to make sure that the

us and it's good for the farmer because it's

barley we get is best for the quality that

good for his income. That is a completely

we need, but we also give them targets to

different cooperation and management

make sure that they provide the neces-

of your suppliers, in this case, the farmers,

sary amount of training and support to

than if you are talking to a glass manu-

those farmers and that they reach out at

facturer who delivers you thousands and

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BUDWEISER APAC

thousands of bottles on a yearly basis.”

Ultimately, the one commonality through-

capabilities the suppliers have, we work with them to get them to the

out the supplier relationships (however

level that we want and need them to be

big or small) for Clysner is striking the

in order to drive sustainable change.”

right balance between innovation, qual-

The relationships are measured on key

ity, cost and the ability to deliver it on

goals and metrics, for sure, but they're

a timely basis. Sustainability, as mentioned

built and fostered on key conversations.

above, is not a separate part of this; it goes

These conversations need to be open

hand-in-hand with it. We do operate and

and transparent when dealing with costs

we do cooperate in sustainability, slash,

and efficiencies and even more so when

innovation as well. Again looking at farmers

dealing with sustainability. Clysner and his

as but one example, Clysner notes that

team strive to be as direct as possible with

Budweiser APAC is there to help them

suppliers because he firmly believes that

because if they do well, it immediately

it allows Budweiser APAC to better manage

impacts Budweiser APAC and drives the

risk and to act fast when things go wrong.

sustainability conversation forward.

“Depending on the supplier, sustainability

“Whatever the plan is, we can debate for days and months on it but the only thing

is right there at the heart of it,” he says. Is

we know is that it never is fully executed

it through water? Is it through electricity?

as per plan,” he says. “The whole chain is

Is it through the use of recycled content

too complex. Sometimes it's the weather,

in packaging material? These are all a part

sometimes it's a machine but things do

of the decision process. Then, of course,

go wrong, and communication is key.

depending on the country and what

“This is good for suppliers because

“ Ultimately, in order to achieve our goals as a business, we need the right suppliers who will allow us to grow” —

J A N C LY S N E R , V P P R O C U R E M E N T A N D S U S TA I N A B I L I T Y, B U D W E I S E R A PA C

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BUDWEISER APAC

“ It’s up to us to decide on the road which we want to follow. The journey is not over yet. It’s a never-ending test for all of us, including our suppliers, to see how successful we can be” — J A N C LY S N E R , V P P R O C U R E M E N T A N D S U S TA I N A B I L I T Y, B U D W E I S E R A PA C

they can show what they're capable of and their agility. That's where sustainability becomes an additional tool in your communication with the supplier. You can look at it as a burden, as the problem, something else that you need to work on, or you can look at it as another facilitator in your discussion. It's an engaging discussion that most of the suppliers want to participate in. I think that's how to approach it and how you bring people along on the journey successfully.”

One thing that caused significant disruption is the COVID19 pandemic. AB InBev and Budweiser APAC have not been immune to the challenges faced as a result of the pandemic, but by having these conversations with the suppliers, the company has been able to collaboratively mitigate the challenges as best as possible.

“Our first priority was the safety of our own people first.

Then we started working with our suppliers to see if we could support them on a case-by-case basis,” he says.

“Sometimes it's by giving them orders early, sometimes it's through payments or giving them visibility on what we know is going to happen earlier than we probably would do but it was about asking; How can we help you?

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Jan Clysner VP Procurement and Sustainability Budweiser APAC

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BUDWEISER APAC

Because we need you going forward.”

In spite of the COVID19 pandemic,

for all of us, including our suppliers, to see how successful we can be. During

the future looks incredibly bright for

those moments, you really see who

procurement and indeed sustainability

are the ones that you can count on.

at Budweiser APAC. With solid founda-

“In the end, it doesn't matter what kind

tions in place, Clysner can look to the

of contract I have with a supplier; if we

future with a certain degree of opti-

cooperate badly, if our communication

mism as 2025 comes closer and closer.

among the two of us is poor, it will be

“Sustainability is in our hands. It's up to

tough in a normal situation. And it's prob-

us to manage and focus on because we

ably going to become impossible during

have the knowledge or we know whom

such a crisis like COVID, so communi-

to work with to get it done,” he says.

cation and cooperation are even more

“It’s up to us to decide on the road

important. I do believe that we have some

which we want to follow. The journey

very good and solid suppliers that we can

is not over yet. It's a never-ending test

continue to drive real change with.”

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