Every day our businesses take decisions regarding from whom we buy raw materials, capital equipment and business services and we do so in the context of a globalising economy.
As global trade has increased, so companies have been able to gain efficiencies and to reduce management costs through sourcing at the global level, which creates direct benefits for consumers. However, there are factors that strengthen the case for local sourcing models, such as improved access to quality raw materials.
Companies also need to manage their supply chains with a view to the long-term benefits to their operations. For our business, these include the availability of key brewing ingredients, such as malted barley, and the stimulus such purchasing gives to local economic growth. We take care to structure our distribution chains to provide efficient services to consumers in the context of local regulations.
There are also many potential areas of sensitivity, particularly regarding the protection of human rights, the working conditions that our suppliers offer to their workforce and their environmental impact. These challenges are not just about monitoring standards but also about working to encourage improvements, understanding and ownership throughout the value chain.
Why this is a priority
As a global business, we think carefully about where and how we buy our raw materials, as well as other products and services, to balance the commercial advantages associated with our scale with the benefits we attain from supporting the local communities in which we work.
Where it makes sense, we seek to source locally to maximise the economic benefit, as well as reduce import and distribution costs of raw materials. Moreover, by sourcing locally we can make a contribution to the health and economic development of the markets in which we operate.
Regardless of whether we source our materials at a local or global basis, we aim to work closely with suppliers as ask them to adhere to out responsible sourcing principles as they provide their products and services.
Enterprise Development and Value Chain Management: Building value chains that promote economic empowerment and development.