In the Carlsberg Group, improving efficiency is a continuous journey encompassing the entire value and demand chain and taking into account, amongst others, portfolio optimisation and simplification, trends within packaging, and production set-up changes. Optimisation of the brewery network, including brewery closures and divestitures, is evaluated in accordance with these dimensions, and has been and will continue to be part of continuous efficiency improvement. As a result of this, a number of breweries have been closed in recent years, including the one in Copenhagen. In the United Kingdom, the Leeds brewery will close in 2011. Closures will continue to be on the agenda in the coming years.
Carlsberg has implemented a number of Excellence programmes which have covered systematic streamlining of processes and procedures in areas such as production, logistics, procurement and administration. Excellence initiatives will continue in Carlsberg. In mature markets, second-wave initiatives are now being rolled out, building on the experience and knowledge acquired through the execution of the first round. In less mature markets, Excellence programmes are being rolled out in a modified form so that the cost base here too can be optimised.
Another important lever to further increase efficiency across the Carlsberg Group is the continuous work on globalising and centralising a number of back office functions. In 2009, steps in this direction were taken within procurement and IT.
Standardisation is the next phase in Carlsberg’s ongoing work to increase the efficiency of all parts of its business.
The aim of standardisation is to strike the best possible balance between centrally defined ways of running the business regardless of national and departmental boundaries, and respect and consideration for local markets, customers and consumption patterns.
This standardisation process will take a number of years. The first phase has involved identifying and mapping the many operational and administrative processes in the Carlsberg Group with a view to designing and optimising uniform procedures and IT systems across the Group’s companies. As with previous projects, the standardisation project will be rolled out first in the mature European markets and subsequently in the Group’s other markets. Besides creating immediate synergies by reducing the complexity of the Group, standardisation will result in greater transparency across the Company, which will provide new opportunities to optimise working methods and processes. This will also be a key lever for more accurate and faster decision-making. The first market to pilot the business standardisation programme will Switzerland in Q1 2011.
People
Continuous development of the Group’s employees is an important part of everyday life at Carlsberg. This ongoing work is supplemented with a number of programmes spanning not only management development but also talent development, internal academies for production, procurement and marketing, and personal development programmes for both managers and other employees at various levels of the organisation.