Report of the
Report of the
Financial statements Other information
by a Service Management agreement. Drawing
on LEAN and Six Sigma practices the HGSS and
operating companies employees are focused
on Continuous Process Improvement, a key
component to unlock the End-to-End
As an example of this success. Ireland has achieved
100 per cent accuracy on the monthly reporting
process only six weeks after migrating to HGSS.
Global Procurement Company
Based in the Netherlands, the HEINEKEN Global
Procurement (HGP) Company is leveraging scale
benefits to drive operational cost savings, improve
working capital and reduce cost price volatility
risk. As part of H EINEKEN's focus on operational
cost saving, approximately 30 global initiatives
were activated in 2012 on raw materials and
packaging expenses and over 2,000 on non-
product related spend areas by the HGP team.
HEINEKEN is also working with suppliers
to secure 'win-win' benefits, of which the Supplier
Finance initiative is an example. In the third
quarter of 2012, the UK went live with the
Supplier Finance programme, to improve the
working capital efficiency of both H EINEKEN
and its suppliers. The HGP is instrumental in the
global implementation of HEINEKEN's Supplier
Code, a key element in our approach to
Global Information Services
HEINEKEN's Information Services strategy
is focused on supporting the business, through
centrally coordinated IS assistance for global
strategic initiatives and implementation
of common IS solutions in the operating
companies. Delivery of this agenda will increase
both global uniformity in the ways of working
and drive local efficiencies.
HEINEKEN continues to focus on the effective
and efficient use of Information Services
by reducing complexity in the infrastructure
and applications landscape.
In 2012, a new HEINEKEN standard Enterprise
Resource Planning (ERP) system for brewing
operations and sales force key accounts was
implemented in the Poland operating company.
Outside of Europe, HEINEKEN IS has supported
the business through the roll-out of solutions
to Sierra Leone, Nigeria and Ethiopia.
Starcom MediaVestwas appointed in luly 2012
as HEINEKEN's first global media agency. HGP
played an important role in negotiating the
agreement. By consolidating 14 agencies into
one global partner, we are able to leverage the
scale of our global footprint in a number of ways.
Scale efficiency generates cash savings in media
investment and scale effectiveness leads to
better ways of working. Going forward, we are
confident that successful media innovations can
be identified, spread and embedded faster.
Global Supply Chain
We continue to leverage our global scale
by centrally developing programmes which are
implemented across all regions. HEINEKEN IS is
supporting Global Supply Chain across a number
of these projects.
In production and logistics, we continued
improvement initiatives to achieve sustainable
results via our Total Productive Management
(TPM) programme. This was supported by global
training initiatives, twice yearly audits and we
further strengthened the customer focus via
End-to-End Supply Chain Mapping.
In order to meet demand in growing markets,
HEINEKEN invested heavily in the expansion of
its production capacity. By leveraging this scale
we have been able to reduce the Total Cost of
Ownership, achieve higher equipment reliability
and shorten time-to-market.
We continue to leverage our unique global
brewery network by getting better insights in the
total Supply Chain from source to customer. This
allows us to innovate within a shorter time. Our
Supply Chain structure has been re-organised
to support the Company's innovation agenda.
We continue to accelerate our knowledge sharing
through our global Knowledge Management
system, which drives best practices by exchanging
knowledge from all our production units around
Heineken N.V. Annual Report 2012