Procurement in Carlsberg’s Integrated Supply Chain

Carlsberg Group Headquarters (Credit: Carlsberg Group)
Carlsberg Group Headquarters (Credit: Carlsberg Group)
How Carlsberg Group Brought Together Procurement, Production, Planning and Logistics in an Integrated Supply Chain

Carlsberg’s Integrated Supply Chain (ISC) strategy has brought together key business functions like procurement, planning, logistics and productions under one business unit.  It manages the world-wide brewery network for Carlsberg Group, sets standards, handles global procurement operations, and oversees end-to-end delivery of their supply chain.

The procurement function manages key categories at a group level to optimise terms and conditions for the business, across raw materials, packaging materials, operational equipment and marketing. 

By incorporating production and logistics under the same department, it allows the company to bring together world-wide best practices and ensure the consistent supply of goods. Having planning within the ISC it ensures Carlsberg produces the right products in the right quantities, and that the company has the right amount of raw materials at all times.

By setting global standards through the core functional areas within the ISC, it allows improvements in the the utilisation of company assets, standardise and streamline processes, increase speed and efficiency and improve service to customers.

Carlsberg Snap Pack (Credit: Carlsberg Group)

Cutting value chain emissions at Carlsberg

The integrated approach to their supply chain allows for greater contributions to the company’s wider sustainability agenda.  

The Carlsberg Group’s value chain carbon emissions statistics shows the company exceeded its 2022 target for reducing carbon emissions across the full value chain. from Having targeted a 15% reduction versus 2015 benchmark figures, it has since delivered a 16% reduction.

Carlsbery Value Chain Emissions (Credit: Carlsberg Group)

Key areas of success have included lower carbon packaging, lower carbon solutions during malting, removing coal power from breweries and by using more energy efficient fridges in bars and restaurants.

"I am very pleased to see that Carlsberg is delivering on its commitments to cut carbon emissions. As the incoming CEO my ambition is to drive progress and with these solid results at the 2022 milestone, we are starting with a strong foot forward as we continue the decarbonisation journey towards 2030 and 2040,” said Jacob Aarup-Andersen, CEO of Carlsberg Group.

Jacob Aarup-Andersen, CEO of Carlsberg Group (Credit: Carlsberg Group)

"I am very proud of the progress we have made towards a ZERO Carbon Footprint by reducing our emissions in line with our promises. When we launched our Together Towards ZERO programme in 2017, we were among the first to introduce science-based climate targets aligned with the Paris Agreement on Climate Change. Fast forward to just a few years later, and we are now part of a greater movement of companies that have set ambitious targets to decarbonise their operations and their value chains. I am thrilled to see colleagues and suppliers reducing our joint impact every day – we are gaining momentum towards ZERO, together with our value chain partners and industry peers," said Victor Shevtsov, EVP Integrated Supply Chain.

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