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SABMiller gets global procurement systems on tap

Brewer nears end of programme

Brewing giant SABMiller has established global procurement and supply chain systems, a key stage in its ongoing business transformation programme.

The company, which makes brands including Miller, Pilsner and Grolsch, said it had also implemented finance systems in a number of countries.

All of the systems are modules of SAP enterprise resource planning software, on which there is an Infor supply chain management application.

As the company announced revenue for the year to 31 March was up seven percent at $28.3 billion (£17.5 billion), it gave an update on the programme.

Operational savings were over $60 million (£37 million) as a result of the programme, it said, though some $296 million (£182 million) was spent in the period designing, building and implementing the software. During the year, some of SABMiller's largest system implementations were in Peru, Colombia and South Africa.

The company had also set a working capital, or liquidity, target of $350 million for the end of the programme next year, but said it had hit $450 million (£277 million), "helped by the implementation of customer management systems, supply chain programmes and improved management of payables".

The brewer has already addressed raw and packaging materials under the procurement element of the programme, and indirect spending - such as transport, marketing materials and capital equipment - will be included in the final stages next year.

SABMiller has said the business transformation programme will deliver simplified processes, reduced costs and stronger data sharing.

It has an infrastructure services deal with HP, under which it is consolidating and virtualising servers onto the supplier's blades. The servers will be standardised on Microsoft Exchange 2010.


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