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CHAPTER 5
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.