InBev to consolidate European supply chain services

Filed in archive News on February 25, 2006

Following a review of its supply chain structure, Belgian brewer InBev is to embark on a range of cost cutting initiatives across its operations.

According to Drinks Business Review, the company has said it intends to move to a shared service center model, with a focus on further integrating its export, finance and procurement divisions into one base.

A shared services center located in the Czech Republic will handle exports for Belgium, Bulgaria, Croatia, Czech Republic, Germany, hungary, Ireland, the Netherlands, Romania, Russia, the UK and Ukraine.

In terms of finance, InBev will centralize processes related to transactional activities and establish a shared service center for Belgium, the Czech Republic, Germany, Hungary, Ireland, Luxemburg, the Netherlands, the UK and possibly France. Hungary has been identified as the most appropriate location for this center.

InBev also announced that it was intending to outsource its European business systems and application services divisions to an external supplier with the aim of providing a more consistent approach at an optimal cost while maintaining strong service levels. The company said it will consult with its social affiliates and start negotiating with potential outsourcing partners.

Though InBev refused to speculate on how many jobs will be lost when the process is complete, around 360 jobs will be cut across five European countries. This will be offset by the creation of 295 jobs in the Czech Republic and Hungary.

The company said it would be seeking to minimize job losses during talks, and would ensure that its employees had the opportunity to continue their career in the supplier's organization.