Distilling supply chain resilience

Despite substantial market volatility, Heineken, Diageo and Pernod Ricard – three giants in the alcoholic beverage industry – have successfully maintained strong profitability. This was achieved primarily through digital transformation, strategic integration of supply chain operations and substantial investments in sustainability. However, industry leaders emphasize the urgency of optimizing inventory management and supply chain resilience in response to persistent disruptions.

Over recent years, alcoholic beverage companies have confronted severe volatility driven by factors including geopolitical instability, pandemics and climate change. Yet despite these challenges, detailed analysis of three industry leaders – Heineken, Diageo and Pernod Ricard – reveals sustained profitability. This has been achieved through agile supply chain management, targeted digital investments and increased sustainability efforts.

According to Magne Setnes, Chief Supply Chain Officer at Heineken, maintaining profitability amid disruptions has required ‘increased cross-border shipments’ and strategic digital transformations. “Disruptions have become business as usual. Supply chain resilience has accelerated to the top of the executive agenda,” he emphasizes.

Heineken has effectively transitioned its planning from localized units to multi-country integrated networks, leveraging global capacities more strategically. Setnes explains that the key to navigating volatility is better visibility: “With digital visibility over our network, we can better utilize our capacity as well as achieve cross-border fulfillment.” The Connected Brewery platform, which provides real-time operational data, has notably improved inventory management and reduced operational costs, even as inventory turnover rates declined.

Similarly, Diageo’s President of Global Supply & Procurement, Ewan Andrew, highlights how digital transformation played a pivotal role in managing recent crises. Diageo adopted advanced digital tools such as the Luminate Control Tower, enhancing real-time visibility across supply chains. This capability proved critical during disruptions such as the Suez Canal obstruction, allowing swift decision-making and minimal disruption. “During the pandemic, there was great recognition that an agile, resilient and efficient supply chain was critical to growth,” Andrew states. … … …

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