Key to Carlsberg’s implementation of its strategy for Western Europe is a sharper focus on costs. Since its launch in 2003, the Operational Excellence programme has looked systematically at production, administration, procurement and, most recently, logistics and a wide range of initiatives have been launched over the years. An important element of Carlsberg’s strategy for the region is a continued focus on efficiency as a means of minimising costs. One example of this is a new project to standardise processes in the Western European businesses.
Commercial Excellence
The Carlsberg Group’s Commercial Excellence programme continued in 2006. One of the tenets of the programme is that an overview of individual customers’ market situation, profitability and possible sales initiatives promotes profitable growth. This overview derives from systematic collection, processing and presentation of experience from Carlsberg employees’ day-to-day contact with customers.
One example of an important tool in day-to-day work is an electronic guide used by sales representatives in their dealings with customers. This helps the sales representatives to advise on marketing, product range, pricing and advertising on the customer’s premises or in various media. For example, the sales representative can help to recommend the most effective marketing initiatives for customers wanting to attract more consumers, drawing on the wealth of experience amassed every day throughout the sales organisation.
Logistics Excellence
Logistics is in several respects a key area for Carlsberg. Logistics personnel have direct contact with the customer, and professional logistics can provide important information and impressions for use in deciding on service frequency and order structure. Logistics expenses account for a substantial proportion (around 15%) of Carlsberg’s total costs. One of the Group’s latest Excellence programmes therefore focuses on this particular area, and a number of countries in Western Europe have reviewed and analysed their logistics operations with a view to identifying and implementing initiatives to make improvements and savings.