Leadership | Heineken

Continued from page 13 a renowned certification agency to help train and certify other domestic welding companies so they can come and work on our sites. This does not only benefit HEINEKEN, but for sure these suppliers and any other customer who will receive qualified welding services safely.

especially when operating in dynamic markets. How successful have you been in achieving this?

By design our markets used to operate autonomous, including planning, risk management and in supplier relationship management. Through the introduction of cross-OpCo end-to-end supply (chain) planning we improved our own demand fluctuations and are better at matching supplier production plans. Now that we use tools for supplier collaboration we still have the benefits of our decentral footprint, whilst collaborating with our supplier base as a united front.

Did COVID force the hand slightly on this endeavour to bring the supplier base closer or has it always been a longerterm plan?

Covid made it a necessity to find alternative supply options, but HEINEKEN has been on a journey that prioritises social responsibility and sustainability way before Covid impacted our supply chains. Our local sourcing programme looking after Barley, Sorghum, and maize crops dates back to way before Covid came into our world and is a great example of how we seek to brew our beverages using local ingredients and package them in re-usable packaging.

Outside of supplier development there is always a requirement to seek innovation and collaboration within the supply chain,

Strong collaboration exists with many of our suppliers to optimise material specifications, reduce CO2 emissions, increase security of supply and improving the conditions for employees in terms of fair wage and safety. With several of our glass bottle suppliers we work on production technologies that allow for lighter, stronger bottles. This provides more production output and lower CO2 emissions both in production as well as in logistics.

Many of our innovation efforts now target reducing the CO2 footprint of our value chain. Therefore, when I first heard about BCCI Chemicals’ 100% sustainably produced caustic soda in Jordan, we immediately organised for a meet. By using hydro- and solar powered technology they can produce caustic soda we need for cleaning our bottles and equipment in a sustainable way, contrary to many of their European competitors that rely on chemical processes and non-sustainable energy. The possibility of servicing the HEINEKEN network in AMEE offered a great opportunity for them to expand their business across borders. We are now looking at expanding BCCI supply into the Caribbean.

Procurement within HEINEKEN has excellent visibility. Procurement in many of the countries you operate does not. What can be done about this?

Several of my markets are small- to midsize operations, where across functions a trade-off has to be made where to allocate resources. Needless to say, business starts with successful sales and producing quality products for our consumers, thus staffing these functions remains priority one. As local procurement does not have an MT seat, the function is often light staffed and aimed at making transactional procurement run smooth and compliant. Capabilities required for more tactical or strategic sourcing tend to be thin or not available at all, causing these operations to fully rely on the global sourcing teams who service 80+ markets. No doubt we are missing out on opportunities that could benefit our operations.

Where many may claim we need more resources in procurement I would argue we need to staff local procurement teams with higher educated and better skilled people. In order to do so we need to elevate job positions to be able to recruit at the right level. When these resources then act as a procurement network across geographies, I am convinced more value will come from procurement than continuing with the domestic transactional focus. Better utilising technology and data for transactional processes will support this direction. Even considering having the procurement function as a member of the MT will help the business to commercially make better decisions.

Across my markets we are already using a network way of working, where procurement managers jointly define capability development objectives. These objectives are then pursued through an agile methodology, where we learn, share, and reapply across markets. By empowering the teams to set their own priorities I continue to be surprised by their creativity, delivery, and motivation. Some results include a ‘text book’ on how to prepare for and run a supplier visit, or on how to scan domestic and surrounding markets for supply. My OpCos now also have the best e-sourcing statistics in HEINEKEN through consistent ways of working and utilising the system to its full extend.

It’s fair to say you are a strategy man.

During your time with HEINEKEN you have been involved and led many projects. What is the long-term strategy for procurement in your territory? What do you foresee as the primary barriers to the advancement of the strategy? If we were to speak again in 18 months, what would you have liked to have achieved?

The development of a supplier base for raw, packaging and production materials with increased domestic and regional suppliers performing alongside our global partners I view as pivotal for sustained operations in Africa. This requires our global procurement teams to continue setting category strategies and to leverage our scale for cross-OpCo sourcing. Our global suppliers should dare to invest in the region, where HEINEKEN can reduce the risk on these by positioning itself as preferred client.

To strengthen the power of the global teams I believe in establishing a network of regional procurement talent that operates from various geographies. By leveraging talent from one market into another I am sure we can drive new sources of value, whilst growing capabilities within our OpCos and suppliers. This will also strengthen the relationship of procurement with our production and sales functions, who are in need of procurement to act as an equal business partner.

18 months from now we will see further tangible developments in localising our supplier footprint in Africa, reducing our supply risks, and supporting our journey towards becoming a more sustainable business. I’m convinced initiatives like we have with BCCI Chemicals is a first of many. AMEE procurement teams will have improved capabilities, where there is a visible shift from transactional procurement to tactical and strategic procurement. For me personally the above can only be called a success if we have visible exciting people moves from AMEE into other markets, spreading the great work we do in Africa into wider HEINEKEN.

Last but very much not least, I will be having the pleasure to join the HEINEKEN Ethiopia team as their Head of Procurement. In 18 months I will be able to brief you on all that is happening in one of HEINEKEN’s fastest growing markets.