InBev outsources IT infrastructure to achieve savings

Related tags Logistics Inbev

InBev is outsourcing its IT infrastructure on a global basis,
arguing that this offers the best combination of cost efficiencies,
technical performance and flexibility for future growth.

The global brewer is currently engaged in negotiations with selected suppliers regarding the transfer of services. InBev claims that during these negotiations, the company will attempt to ensure that as many employees as possible have the opportunity to continue their careers in the suppliers' organisations.

Once these negotiations and related consultations are completed, InBev plans to provide more detailed information concerning the potential impact on our employees. Any impact would, of course, be subject to local legal requirements.

InBev's announcement comes shortly after the publication of a new report, which suggests that the rate of logistics outsourcing across the EU15's enterprises is likely to increase.

Market analyst Datamonitor's European Logistics Market Maps 2004​ predicts that total spend on outsourced logistics in Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain, Sweden, and the United Kingdom will reach €175.5 billion by 2008 to account for 45 per cent share of total logistics spend.

The report echoes InBev's arguments that a move away from in-house logistics models could lead to cost reduction, high-speed delivery and tightening budgets.

"There will be continued growth in the outsourcing of more complex logistics tasks such as order handling, logistics management, and the provision of value-added services,"​ said Tom Mills, Datamonitor logistics analyst.

"Escalating costs of research and development have contributed to the search for cost savings."

All this spells good business for outsourced logistics service providers (LSPs) as manufacturers and retailers increasingly look to outsource some logistics functions in their quest to gain competitive advantage. In the European grocery retail sector, Datamonitor expects outsourced logistics to account for 42 per cent (€15bn) of total 2008 logistics spend, up from 39 per cent in 2003.

InBev​ is a publicly traded company based in Leuven, Belgium, and today it is the leading global brewer by volume. InBev has a portfolio of more than 200 brands and employs some 77,000 people, running operations in over 30 countries.

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