Budweiser Inbev Beers Group Discussion On Centralized Procurement Strategy For China

In this paper, I study various issues related to the procurement centralization, including its advantages and disadvantages. This study is based on my work experiences at AB-Inbev after its merge with Anheuser-Busch. In China, AB-Inbev has been growing mainly though a large number of acquisitions of state-owned beer plants. By following AB-Inbev's growth history and its background in China, we analyze through examples how AB-Inbev carried out its procurement centralization and why it was successful. The purpose of my study is to provide a case study for other companies in China, including both large state-owned and private enterprises, as how to successfully switch from a de-centralized procurement operation to a centralized one. As I try to demonstrate in this paper, the main reasons why AB-Inbev was able to accomplish this change are: 1) the persistence and will of its top management; 2) the support it received from its suppliers; 3) a good road map as well as good execution.