Drive end2end performance
11
Our business priorities (continued)
HEINEKEN is leveraging the global scale of its operations to
deliver increased efficiencies across the business. Driving end2end
performance will fuel future growth and increase our margins.
Report of the
Report of the
Financial
Sustainability
Other
Introduction
Executive Board
Supervisory Board
Statements
Review
Information
Heineken N.V. Annual Report2017
Our end2end perspective starts with our
consumers and customers and focuses on
reducing non-value adding costs. Our strategy
encompasses disciplined management of capital
expenditure and working capital and a drive for
functional efficiency. This means simplifying
processes and eliminating duplication. As a
global business we need to continue to realise
the full benefit of our scale.
In 2017, we continued toinvestin key developing
markets. We added capacity in Ivory Coast and
Vietnam and we started construction to extend our
Kilinto brewery in Ethiopia. We are on scheduleto
open our brand new Meoqui brewery in Mexico in
early 2018. We also laid the foundation stone of our
first HEINEKEN brewery in Mozambique. The first
bottle of beer is expected to come off the production
line in the first half of 2019.
In procurement, we continue to leverage HEINEKEN's
global scale with fewer, more strategic suppliers,
supporting both top and bottom line growth.
With this strategy, we have continued to reduce our
cost base as well as leveraging our supplierfinancing
tools and delivering cash benefits.
Applying continuous improvement to our New
Product Implementation (NPI) process allows us
to introduce more new products faster and more
efficiently. Our Sales and Operational Planning Process
capabilities are instrumental for matching supply
versus demand and anticipating increasing market
volatility. Through our Commercial Spend Productivity
(CSP) initiative, we continued to focus on investing
our commercial resources in the most efficient and
effective way.
We made good progress on our BASE programme,
which enables HEINEKEN to become more agile and
efficient by standardising core business processes
in Finance, Procurement, Production, Logistics and
Sales supported by Enterprise Resource Planning
(ERP) systems. Overthe coming three years we plan
to deploy BASE in various regions and territories: Asia
Pacific, Africa, Middle East Eastern Europe and
the Caribbean.
Taken together, these efforts to improve our
productivity contribute to increase our margins
and fuel future growth.
Media waves project
By aligning the commercial and
procurement agendas, we have
supported our Win with Brands strategy
through the consolidation of the media
spend into two global competitive
partners. This allows us to build a
sustainable relationship with our media
partners whilst maximising our reach to
the global consumers.
HEINEKEN Financial Shared
Services centre (HFSS)
In 2017, we continued to work end2end
to achieve process improvements and
seamless operations between H FSS and
the countries.
a Global supply chain
64% of our beverage production sites
reduced energy consumption and 63%
reduced water consumption in 2017.
Integration of Brasil Kirin
into HEINEKEN Brazil
By using an end2end approach for the
integration of Brasil Kirin, procurement,
production and logistics played
an instrumental role in identifying
the synergies and optimising the
supplier networks, contributing to
a successful integration.
