How SABMiller reduced the carbon footprint of its supply chain
Global drinks company and brewer SABMiller has announced that it has made a small but very significant change to how its brewing ingredients are prepared and is a more sustainable and efficient business unit as a result.
Using a new technique known as ‘dry de-husking’ (DDH) the outer husk from malted barley grains is removed before the first stage of the brewing process, which is known as mashing and involves soaking the barley in hot water to extract sugars.
DDH has two major benefits: less energy is used in mashing, since less hot water is required to penetrate the grains and the discarded husks can be collected and used as biofuel for the brewery’s boiler, meaning less reliance on fossil fuels.
SABMiller developed DDH in partnership with patent-holder Dillenburger & Hertel GmbH, a German firm that is a renowned innovator in brewing technology. Following a successful pilot at its Mwanza Brewery in Tanzania the company is now looking to apply the technology at more of its breweries across the globe.
Thomas Brewer, Engineering Manager at SABMiller, explained: “By using DDH in Mwanza Brewery we have made a significant improvement in energy efficiency and emissions, with no impact on our traditional brewing techniques or the quality and taste of the beers that we brew there.
“Dry de-husking helps brewing move a step closer to being a truly circular process which generates no waste: barley is harvested, malted and milled, we harness the energy of the husks and can even make use of the ash that is left behind, as this can be used as fertiliser for the fields in which the barley is grown.”
The DDH initiative forms part of the company’s wider commitment to reduce waste and operate as cleanly as possible; its breweries already reuse or recycle nearly 90 percent of their general waste, while 99 percent of spent grains are reused by farmers as animal feed or to generate renewable energy. SABMiller is confident that it is on track to achieve a 50 percent reduction in on-site greenhouse gas emissions from its breweries by 2020.
5 Minutes With: Jim Bureau, CEO Jaggaer
What is data analytics, and why is it important for organisations to utilise?
Data analytics is the process of collecting, cleansing, transforming and analysing an organisation’s information to identify trends and extract meaningful insights to solve problems.
The main benefit for procurement teams that adopt analytics is that they’re equipped to make faster, more proactive and effective decisions. Spend analysis and other advanced statistical analyses eliminate the guesswork and reactivity common with spreadsheets and other manual approaches and drive greater efficiency and value.
As procurement continues to play a central role in organisational success, adopting analytics is critical for improving operations, meeting and achieving key performance indicators, reducing staff burnout, gaining valuable market intelligence and protecting the bottom line.
How can organisations use procurement analytics to benefit their operations?
Teams can leverage data analytics to tangibly improve performance across all procurement activities - identifying new savings opportunities, getting a consolidated view of spend, understanding the right time for contract re-negotiations, and which suppliers to tap when prioritising and segmenting suppliers, assessing and addressing supply chain risk and more.
Procurement can ultimately create a more comprehensive sourcing process that invites more suppliers to the table and gets even more granular about cost drivers and other criteria.
"The main benefit for procurement teams that adopt analytics is that they’re equipped to make faster, more proactive and effective decisions"
Procurement analytics can provide critical insight for spend management, category management, supplier contracts and negotiations, strategic sourcing, spend forecasting and more. Unilever, for example, used actionable insight from spend analysis to optimise spending, sourcing, and contract negotiations for an especially unpredictable industry such as transport and logistics.
Whether a team needs to figure out ways to retain cash, further diversify its supply base, or deliver value on sustainability, innovation or diversity initiatives, analytics can help procurement deliver on organisational needs.
How is data analytics used in supply chain and procurement?
Data analytics encompasses descriptive, diagnostic, predictive and prescriptive data.
Descriptive shows what’s happened in the past, while diagnostic analytics surface answers to ‘why’ those previous events happened.
This clear view into procurement operations and trends lays the groundwork for predictive analytics, which forecasts future events, and prescriptive analytics, which recommends the best actions for teams to take based on those predictions.
Teams can leverage all four types of analytics to gain visibility across the supply chain and identify optimisation and value generating opportunities.
Take on-time delivery (OTD) as an example. Predictive analytics are identifying the probability of whether an order will be delivered on time even before its placed, based on previous events. Combined with recommendation engines that suggest improvement actions, the analytics enable teams to proactively mitigate risk of late deliveries, such as through spreading an order over a second or third source of supply.
Advanced analytics is a research and development focus for JAGGAER, and we expect procurement’s ability to leverage AI to become even stronger and more impactful.