Global Sourcing at Anheuser-Busch InBev: Tapping (Beer) into the Chinese Supplier Market
(5 pages of text)
This case concerns the difficulties of global sourcing for InBev, an international brewery with branches in six geographical zones. In 2006, Pascal Baltussen came to China to set up the company's international procurement office and had it up and running by the end of the year. Not only were risks such as delivery delays and rising costs constantly lurking, but in 2010 his company, Brazilian-Belgian brewer InBev, acquired the almost equally large U.S. brewer Anheuser-Busch to form the world's largest brewer, AB InBev. This posed further complications. How could Baltussen now successfully roll out his sourcing vision for China and manage internal and external challenges?
This case was written for a graduate or MBA course in purchasing and supply management or supply chain management. It gives students the chance to develop their analytical and decision-making skills on a complex strategic sourcing decision. The case presents the opportunity to review sourcing risks, sourcing strategy, low-cost country sourcing, culture differences in global sourcing, sourcing organization, international procurement offices (IPOs), quality management, and supply chain integration.The case should motivate students to think about the difficulties of integrating suppliers, dealing with cultural differences, and setting up IPOs in China.
Accommodation & Food Services
China, Large, 2010
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