Helping Diageo Transform Its Supply Chain, To Serve
Customers Across 100 Countries
Whilst enjoying a creamy pint of draft Guinness, have you ever
wondered about its journey from brewery to bar? The famous black
stuff (it's actually ruby red) is available in 100 countries
worldwide and is brewed in almost 50. As you can imagine, it's
a complex undertaking getting it from plant to pub – and one
that's fundamental to the company's success. So in 2014,
Diageo came to us for help.
A Deloitte team from Risk Analytics, Financial Advisory and
Consulting has spent the past two years working with Diageo on its
commercial and supply chain programme, Project Ice Cap. The
objective was to iron out peaks and troughs in sales by improving
the client's understanding of customer demand and sales
behaviour. At the same time, we looked at removing inefficiencies
to help save costs. The programme spanned Diageo's enormous
logistics process from production and warehousing to distribution
and retail. Our work supported Diageo in becoming a consumer-driven
organisation, and with reduced volatility and unpredictability in
Working closely with Diageo's global commercial and supply
chain leadership, we performed a comprehensive evaluation of its
existing supply chain in five high-priority markets: Ghana, Brazil,
Spain, Global Travel & Middle East and Great Britain. In each
market, we looked at different commercial practices, supply chain
arrangements and distribution channels to model scenarios showing
the benefits and costs for Diageo implementing certain
The model allowed Diageo to run 'what if' scenarios to
determine the impact of its commercial decisions – as well as
changes in demand and production - across the entire value chain.
It has also identified significant opportunities to increase
revenue growth, improve the supply chain and reduce Diageo's
working capital. We're now helping with an implementation
process that will also benefit Diageo's customers, thanks in
large part to Diageo having to carry less stock.
The foundation for our work was a project that garnered the
prestigious 'Supply Chain Strategy and Design' award at
Logistics & Supply Chain's European Supply Chain Excellence
Awards. This honour recognised Diageo's achievements in
transforming its supply chain, as well as its new approach to
considering the entire value chain, rather than looking at
everything in silos, allowing better decisions to be made for the
business as a whole.
After studying bioengineering and completing a PhD in the San Francisco Bay Area and a two-year postdoctoral research fellowship in London, Mark has spent the past four years analysing global health policy.
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