Supply chain responsibility



 
 

Heineken relies on its suppliers to be able to brew and sell our beer and soft drink brands. We take great care in the selection of our suppliers as we aim to build long-term relationships with them. We need to be certain that they can deliver the right quality and quantity of goods and services at a price that allows both parties to run a profitable business. In 2007, we began the global rollout of our Supplier Code, requiring our suppliers to act with integrity, treat their employees fairly and aim for continuous reduction of their environmental footprint.

Our objectives

Simply put, we want to ensure the sustainability of our business and our business model. Our ultimate objective is therefore to reflect our own sustainable ambitions throughout our entire supply chain via companies that act in accordance with our own business principles.

In our 2006 Sustainability Report, we set the following targets based on this objective:
  • Achieve a 100 per cent response rate from all suppliers that were contacted by Group Purchasing in 2006
  • Integrate supply chain responsibility in the periodic quality audits and subject at least 20 per cent of Group suppliers to a quality audit
  • Further integrate supply chain responsibility in the supplier assessment process
  • Start the expansion of the Supplier Code to local contracts for raw material, packaging, promotional materials and investment goods from operating companies in our regions of Western Europe, Central & Eastern Europe and Africa & Middle East (to be completed in 2008)
  • Define a process for integrating the Supplier Code in goods and services other than those mentioned above (for example, utilities, advertising, maintenance and repair work).
Our strategy

We have adopted a gradual introduction of the Supplier Code in order to provide clarity to our suppliers and the opportunity to become compliant where this is necessary. We adopted the Supplier Code at the end of 2005, beginning with central implementation in Group Supply Chain for those purchases made centrally on behalf of the Group. The Code is now in the process of being rolled out within our Operating Companies. Ultimately, we believe that all activities related to the Supplier Code should be integrated into the supplier selection, appointment and audit processes. In our approach we aim to include the Supplier Code in all contracts with suppliers that require a preferred supplier status and all other major contracts. At a local market level, a risk analysis of locally purchased goods is undertaken and, on the basis of this, the Supplier Code is implemented with appropriate actions and discussions with suppliers where relevant.

Case study

Implementation in Athenian Brewery