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Agile Supply Chain: Technology & Management Systems Best Practices
- 5. Introduction Agile Supply Chain: Technology & Management Systems Best Practice Building a Sustainable Supply Chain Post-Pandemic and beyond: Navigating Supply challenges Today’s Agenda 5 01 02 03 04
- 7. WHO AM I PETER KRAEMER CHIEF SUPPLY CHAIN OFFICER CHIEF GLOBAL BREW MASTER EDUCATION MOST PROUD OF: BEING CHAMPION OF BEER QUALITY FAVORITE BEER: BUDWEISER WORK EXPERIENCE • Chief Supply Officer, 2016 • Vice President, Supply 2008 • Vice President, Operations 2006 • Group Director, Brewing 2004 • Senior Brewmaster, St. Louis Brewery 1996 • Sr. Assistant Brewmaster, St. Louis Brewery 1995 • Executive Assistant, Corporate Brewing 1994 • Assistant Brewmaster, St. Louis Brewery 1992 • Brewing Staff Associate, Corporate Brewing 1990 • Group Manager, Tampa Brewery 1989 • M.B.A., St. Louis University 1992 • B.S., Chemical Engineering - Purdue University 1988
- 8. +20K Farmers +100K Suppliers 169K Colleagues 580Mio hl of Beer +500 Beer brands +200 Breweries +2B Consumers Company Ecosystem +600 DCs
- 9. Supply Chain Mission Statement Produce & Deliver Superior Beers with best-in-class cost and the right availability All to create a Future with More Cheers! Lead&Growthe BeerCategory 1 Optimizeour Business 3 Digitize&Monetizeour Ecosystem 2 Company Strategy
- 10. Agile Supply Chain: Technology & Management Systems Best Practices 10
- 11. Supply Chain of the Future is empowering our people with new capabilities that fuel growth
- 12. We are moving from a manual, linear, and production-centric supply chain… Plan Brew Pick Innovate Source Package Deliver
- 13. …to one that is digital, interconnected, consumer-centric and sustainable
- 14. TRANSFORM Scale digital & physical technologies DELIVER Build healthy management systems OUR MANAGEMENT SYSTEMS ARE KEY TO OUR SUPPLY CHAIN STRATEGY
- 15. DELIVER Withhealthy management systems and a strongasset base, weare empoweringour front-lineoperators throughATO LighthouseBrewery Pre-2018 LighthouseBrewery Post-2018 Manual Activities (22%) Transactional Activities (7%) Add Value (71%) Manual Activities (52%) Transactional Activities (22%) Add Value (12%) Waste (14%) ✓ Upskilling ✓ Ownership ✓ Reliability ✓ Performance ✓ Decision Making
- 16. Physical Transformation 3 Transform physical assets – e.g. AGV forklifts, electric fleets, flexible packaging lines 16 As we strengthen our people foundation, we are layering on digital & physical technology to help operators drive new capabilities TRANSFORM Digital Transformation 2 Digitize & enhance existing operations with artificial intelligence and machine learning People Transformation 1
- 17. Senior Leaders Front Line Leaders Managers Front Line 17 Using our management systems – we are transforming from a traditional hierarchy where operators work for supervisors and managers … We’re transforming how we operate 1 1
- 18. …to a front line-focused model where supervisors and managers empower operators and their teams Senior Leaders Front Line Leaders Managers Front Line 18 1 We’re transforming how we operate 1
- 19. We’re building advanced capabilities 19 Agile teams built on zone best practices Consumer-driven portfolio prioritization Fast and flexible small-batch capabilities Innovate 2
- 20. 20 Farmer & supplier data integration Automated, simplified procurement Source We’re building advanced capabilities 2
- 21. 21 Predictive & prescriptive maintenance Advanced analytics that drive real-time decisions Flexible & productive processes Supply: Brew & Package We’re building advanced capabilities 2
- 22. 22 End-to-end integrated planning Synchronized transportation management Integrated mobile ordering & delivery experience (B2B) Logistics: Plan, Pick & Deliver Optimal Route to Market up to consumer integration D2C We’re building advanced capabilities 2
- 23. Breweries & Vertical Operations Tier 1 Distribution Centers Tier 2 Distribution Centers São Cristóvão Brazil Guarulhos Brazil Jaguariúna Brazil Waltloo South Africa Ibhayi South Africa Cartersville United States San Diego United States Magor United Kingdom Tocancipa Colombia Zacatecas Mexico Apan Mexico San Pablo Mexico Chengdu China Putian China Gimpo South Korea Shanghai China We’re establishing lighthouses to test and execute at scale 23 Tierra Blanca Mexico MinasGerais Brazil Passo Fundo Brazil 3
- 24. “Segue”– Developed by ABI to modulate line speed & increase throughput DEEPHOW + POWERED BY ACADIA Insert video • Optimizes line speed overall for maximum throughput • Uses intelligence to reduce speed based on buffer capacity • Prevents micro stops from causing downtime on packaging lines
- 25. Global best practice sharing made simple by Technology DEEPHOW + POWERED BY ACADIA Insert video • 10X faster learning of SOPs via colleague-made videos • Instant, AI-powered translations into local language • Digital tracking of compliance and feedback
- 26. Leveraging digital twin + AI to improve top KPIs DEEPHOW + POWERED BY ACADIA Insert video • Advanced Process Controls: Reduce Fuel & Electricity 5% • Predictive Maintenance: Improves Gross Line Yield 2% • Abnormality Detection: Reduce Raw Material Cost 1%
- 27. Integrated End-To-End Planning • E2E visibility across entire supply chain from Supplier to Customers • Heuristics Driven Optimization Driving Customer Service and Cost • AI and Machine Learning Statistical Forecasting
- 28. Building a Sustainable Supply Chain 29
- 29. 2025 Sustainability Goals This aims for holistic environmental and social impacts, driving transformational change across our entire value chain. SMART AGRICULTURE WATER STEWARDSHIP CIRCULAR PACKAGING CLIMATE ACTION
- 30. 100% of our direct farmers will be skilled, connected and financially empowered 100% of our communities in high stress areas will have measurably improved water availability & quality 100% of our products will be in packaging that is returnable or made from majority recycled content 100% of our electricity will come from renewable sources & 25% carbon emissions will be reduced across our value chain SMART AGRICULTURE WATER STEWARDSHIP CIRCULAR PACKAGING CLIMATE ACTION
- 31. 2017 OUR VISION FOR A SUSTAINABLE FUTURE Advanced agtech solutions We have expanded our ambition to Achieve Net Zero by 2040 100% renewable electricity 35% absolute emissions reduction (Scopes 1 and 2) 25% emissions reduction per hectoliter across value chain (Scopes, 1, 2 and 3) 100% packaging either returnable or made from majority recycled content 2025 SUSTAINABILITY GOALS ON TRACK CATALYZING ACTION ACROSS OUR VALUE CHAIN Scale energy efficiency and renewable thermal energy solutions Accelerate low-carbon packaging solutions Implement green logistics initiatives Expand regenerative agriculture practices Alternative fuel fleet Integrated solutions with suppliers Innovative cooling solutions ACHIEVED2017 ENVIRONMENTAL GOALS 2025 2030 2040 100+ Accelerator identifying breakthrough solutions Supplier collaboration platform Eclipse Carbon Neutral Lighthouses
- 32. Increase yield through new, more resilient crop varieties Work with farmers on nutrient management and optimized fertilizer application Advance nature- based solutions for carbon removal Increaserecycled content Scale low-carbon packaging solutions Implement lightweighting solutions Continue load optimization Improve routing efficiency and reconfigure modes of transportation Implement alternative fuel trucks (electric, hydrogen, biofuels) Increase efficiency in malting and milling processes Shift to biofuels and biomass Implement energy recovery Implement more efficient refrigeration with innovative cooling solutions Scale renewable electricity across our retailers Promote local recycling Reduce waste through use of recycled content and lightweighting initiatives in packaging Agriculture End of life Packaging Conversion of brewing ingredients Operations Product cooling Logistics Implement renewable electricity and heat solutions Near-Zero to landfill production waste in brewing operations Key initiatives to Transition to Net Zero
- 33. Post-Pandemic and beyond: Navigating Supply challenges 34
- 34. Building resilient operations to overcome challenges… Management Systems Technology Sustainability Enabling your teams to act autonomously, creating reliable operations, more agile and resilient when dealing with uncertainty Embedding Technology to build an Integrated Supply Chain enables us to anticipate and react to uncertainty more precisely than before. Through minimizing resource consumption and transitioning to renewables, we reduce our exposure to uncertainty.