Budweiser beer cartons procurement experience (3)

Budweiser's EHS Requirements for Suppliers

Many companies believe that the introduction of environmental protection concepts in the procurement process will lead to an increase in procurement costs. actually not. Nowadays, domestic carton suppliers and user companies are caught in a turbulent cycle: repeatedly reducing prices during the procurement process, causing suppliers to be unprofitable, and suppliers do not have much capital to invest in the research and development of new products, which in turn causes the user companies themselves to fail Using technological innovations in materials, the ability to innovate profitability in the entire supply chain is gradually weakening, and it is in the midst of fierce market competition.

In the past 25 years, Budweiser has made great progress in the effective use of energy and reducing environmental impacts. For example, since 1991, it has reduced the amount of solid waste landfilled by 57% and the amount of hazardous waste used by 61%. 31% of toxic waste, 7% of water consumption, and 5% of energy consumption.

Budweiser has also reduced the weight of packaging aluminum cans by more than one-third over the past 25 years, accumulating over 250 million pounds of aluminum per year. Budweiser will continue to make unremitting efforts in environmental, health, safety (EHS-environment, health, safety) in order to achieve better results. In order to reflect the company's commitment to EHS and continuous improvement, an environmental, health, and safety management system has been established and implemented within the company. This comprehensive EHS management system involves EHS tasks throughout the company's plans, decisions, and daily activities, including relationships with various suppliers.

In the printing field, the use of water-based inks and varnish is also a trend. In this respect, the flexo printing method is ideal. Therefore, Wuhan Budweiser has taken the lead in introducing the pre-printing mode of flexo printing in the procurement of cartons, which not only reduces costs, but also is environmentally friendly.

Wuhan Budweiser also requires suppliers to participate in our EHS strategy while doing a good job of internal EHS. Ensure the safety of the materials used from the source of the supply.

The supplier's evaluation criteria are for suppliers to provide products and services for Budweiser in the production process.

Look for opportunities to continually improve EHS performance. Budweiser evaluates suppliers' EHS from the following five aspects.

Development of safety plan

The supplier's safety plan must have detailed objectives and action plans to achieve the defined targets. The safety program of the entire plant is included in the scope safety plan.

At the same time, the safety plan covers all areas of the factory, combined with the factory's production operation standard procedures or activities for improving safety.

Implementation of safety plan

Budweiser requires the supplier's factory to have the minutes of the staff meeting and the safety plan training records. Employees participate in training records and certifications of first aid, fire fighting, emergency training, and other safety and health activities, as well as personal safety program skill certification materials (such as special job training certificates). It also requires that a substance handling program be included in the safety manual.

Continuous improvement of safety work

Budweiser requires suppliers to provide data to present a trend of reduced safety incidents and improved safety performance. The factory has data proof of the safety plan and actual improvement. The safety team or committee ensures that the safety performance of the plant is improved and the implementation and adoption of the established procedures result in continuous improvement of the environmental performance of the plant.

At the same time, the supplier should establish the factory's environmental goals and improvement plans, such as energy consumption, solid and hazardous waste generation, exhaust emissions, process waste, use of raw materials, reduction in the use of daily necessities, use of recycling and recyclability as much as possible. Substances have a record of periodic internal or external environmental inspections to reflect the company's continuous improvement actions. The supplier has systematically reflected correcting the identified non-conforming behavior. The factory has standardized environmental training materials. The factory or general manager leads and supports the implementation of environmentally sound processes and programs.

Cleansing procedures

The supplier's factory has documented hygiene training programs and clean and hygienic standard operating procedures. It is also being implemented.

There are records of periodic internal or external inspections to reflect the company's continuous improvement actions. The problems discovered by Budweiser last year's inspections have completed the record of improvement and reflected satisfactory results.

Work environment is upgraded to an environment conducive to quality improvement

The supplier factory work area should provide employees with tools that can be queried to ensure that employees can improve the quality of EHS, such as standard operating procedures, quality manuals, and control flow charts. There are minutes of safety meetings. Reflects that the factory has proper working conditions and quality improvement. It responds appropriately to employees’ safety, health and quality concerns. The work area is very clean and meets the conditions allowed by the production process. “Correctly knows” the Chemical Safety Data Sheet (MSDS-), which is properly placed where employees can easily access. The labor bureau or the fire station was inspected, and the items that required rectification could be improved.

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Budweiser Company Profile

Founded in 1876, Anheuser Busch Corporation is headquartered in St. Louis, USA. The company has been the largest beer company in the world since 1957 and has the best-selling brand Budweiser and Budweiser. (BudUltra). Budweiser has 12 factories in the United States, and there are 23 international wineries outside the United States, of which 2 are AB-owned wholly owned brewery: STAG in the UK and 8W in Wuhan, China. In addition, there are 5 winemaking collaboration companies and 6 packaging collaboration companies around the world. Budweiser is one of the largest aluminum beverage cans in the United States and one of the largest theme parks in the United States. In 2003, the beer sales revenue was 11.6 billion US dollars, the sales volume was 130 million barrels, and the profit was 3.5 billion US dollars. In February 2003, the company's market value was 51 billion US dollars. AB's sourcing strategy is to choose high quality, low cost suppliers and guarantee supply with the lowest total system cost procurement. Through centralized procurement and integration requirements, the company achieved better quality and service control with the lowest total system cost. On the basis of guaranteeing supply, the purchasing and purchasing power will be increased. Integrate procurement, increase the purchase volume of single products, understand the main suppliers and cost components in the industry, and how to control costs. Optimize bidding and negotiation processes based on group purchases to maximize savings.

Wuhan Budweiser was established in 1995 with a registered capital of US$117 million. Budweiser invested 70 million US dollars in 1995 to purchase the original ZD brewery, and afterwards added about 100 million U.S. dollars for reconstruction and expansion projects. Budweiser's controlling share is 97.1%. In 2004, the company's production capacity was 370,000 tons. It owns 5 production lines, including 3 bottling lines, 1 listening line and 1 barrel beer line. The main production Budweiser, Budweiser ice beer, Budweiser fresh cool three brands.

Source: Global corrugated box industry