Diageo is a beverage company founded in 1997 and based in London. The company is one of the world’s major beverage producers, with products sold in more than 180 countries. Diageo has designed and developed its supply strategies as a result of globalization, with the company now having the ability to transport goods to other countries. source raw materials and even package their products in other countries around the world. Diageo has adapted its supply chain approach to maintaining consistent quality around the world. Diageo has established up production sites in some of the countries where they sell their products and even acquired local liquors plants to bridge the supply chain gap created by globalization. The company has designed its procurement and sourcing techniques to allow them to purchase more supplies, raw materials, and labor as a consequence of the increased demand for products as a result of the expanded market. The company’s global operations have also been separated into five regional divisions, followed by local markets. In addition, the company has been compelled to purchase a huge distribution center while also deciding on the ideal places for incorporating foreign goods near ports. In addition, the company has established new supply tactics, such as adopting paper board packing instead of plastic bottles to achieve more sustainable packaging options. All of these supply strategies are designed to meet the challenges of globalization.
The supply chain of the Diageo Company is influenced by key drivers of change such as politics, social change, the environment, economics, and technology. The company has been obliged to invest in technology throughout its supply chain to improve its ability to respond to new environments. When it comes to beer goods, the worldwide support for sustainable development has led to a shift in packaging from plastic to paper board (“Diageo – Annual Report 2021”, 2021). The company has also implemented supply chain methods to lower costs and increase profits. Furthermore, the corporation has devised strategies to manufacture a diverse range of products with fewer chemicals, to adapt to social developments in terms of health and taste. Lastly, the company is constantly modifying its supply tactics to abide by the changing rules and regulations in its operating countries.
Customer centricity is at the heart of Diageo’s supply chain strategy while focusing on customer needs is the most effective approach for the company to achieve profitability and long-term sustainability. To suit the different customer demands, the company produces variety of products such as beers, gin, and vodkas (“Diageo – Annual Report 2021”, 2021). For increased income and long-term viability, the company’s supply chain management should focus on producing products that meet customer demands in terms of quality, health, pricing, delivery, and environmental sustainability.
References
Diageo – Annual Report 2021. (2021). Annualreports.com. Web.