SABMiller introduces new management reporting structure in Europe

According to an internal memo, SABMiller reviewed its manufacturing and supply chain structures last year and saw that while its operations have made good progress in driving the efficiency and effectiveness of its brewing and warehouse operations, there still remain some variances across the countries SABMiller operates in.

SABMiller came to the conclusion that its planning and forecasting accuracy and the efficiency of its distribution operations could also be improved. The achievement of these improvements will take more than one year but should yield USD 60 million to USD 100 million per annum in additional profit.

It is expected that SABMiller will seek to find cost savings in distribution through downsizing and outsourcing. Redundancies could be announced in the course of this year. In Europe, SABMiller employs some 14,000 people.

SABMiller’s new European organisation structure will see a change in reporting lines. Regional Technical Directors and their teams will report to European Manufacturing Director, while Supply Chain Planning to European Supply Chain Planning Director. Both teams will report to a European Operations team based in Zug, Switzerland, however, they will continue to be employed by the respective businesses in each country.

The new organisation will be headed by Andy Walter, European Operations Director.

SABMiller will also appoint a European Human Resources Director in due course.