InBev, Europe, Shared Services, Outsourcing
InBev to create European shared service centers and to outsource
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InBev, the leading global brewer based in Belgium, has determined that there is a need to update its existing support platform for Europe. Depending on the function, InBev will either create a shared service center or outsource.
Shared Services
It is InBev's general intention to move to a Shared Service Center model in 2006 for selected transactional activities within its Export, Finance and Procurement functions in a number of countries. The goal would be to create a single, integrated cross-functional organization that is able to deliver a greater focus on the consumer, customer and supply chain.
Export:
InBev will establish a Shared Service Center to provide Export services for the following countries: Belgium, Bulgaria,Croatia, Czech Republic, Germany, Hungary, Ireland, the Netherlands, Romania, Russia, the UK and Ukraine. The Czech Republic has been identified as the best location for this center.
Finance:
It is also InBev's intention to centralize processes related to Finance transactional activities and establish a Shared Service Center for these services for the following countries: Belgium, the Czech Republic, Germany, Hungary, Ireland, Luxemburg, the Netherlands and the UK. Hungary has been identified as the most appropriate location for this center.
In summary, for the first part of 2006, about 360 job reductions are contemplated, covering five European countries. At the same time, it is InBev's expectation that 107 jobs would be created in the Czech Republic and 188 in Hungary.
Outsourcing
It is also InBev's general intention to outsource Global and Western European Business Systems and Application Services based in Belgium, the Netherlands, Luxemburg, the UK, Ireland, Germany, Italy, and France to an external supplier. Improvements to the existing model would potentially provide a more consistent approach to these services for InBev's business in a number of European countries at an optimal cost while maintaining strong service levels.
During these discussions, InBev will ensure that employees have the opportunity to continue their career in the supplier's organization. The experience of several employees having transferred when InBev outsourced its Information Technology infrastructure to IBM and BT in mid 2005 was that it can be beneficial to join an employer that specializes in their core business.
Objectives
The changes contemplated by these intentions have two objectives. They would ensure that InBev would provide the best possible service for its sales and supply activities across Europe. It is also InBev's goal to free up resources to invest behind these activities (including its brands), which is vitally important in what continues to be a very challenging trading environment in Western Europe.
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