Eskom Procurement Book 2015

SUPPLIER RELATIONSHIP MANAGEMENT

A5.1.2 SABMILLER INVESTING IN LOCAL SUPPLIERS [26]

In procuring its raw materials, SABMiller combines the scale benefits of global sourcing with the advantages of sourcing locally where this makes sense. Local sourcing means zero import duties and shorter, more secure supply chains while encouraging enterprise and stimulating the local economy on which every SABMiller business depends. In Africa, in particular, it supports the group’s strategy of developing new, low-cost products based on indigenous crops, such as sorghum and cassava, which can be marketed as affordable alternatives to traditional home brews. SABMiller is working hard to source more of its raw materials (both conventional and new) from local suppliers. In Africa, it’s scaling up commercial barley production in countries such as Zambia and Tanzania and recently won donor funding to help establish a cassava supply chain using small-scale farmers in Southern Sudan. In Peru and Ecuador, it’s developing high-quality, local supplies of maize and rice to replace imported crops. In India, the business is working with small-scale barley farmers to improve their yields and quality, enabling them to meet more of SABMiller’s requirements while also boosting their incomes. There are currently some 9 000 farmers involved in this project.

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