Drinks giant Diageo (DGE) has unveiled plans to delegate responsibility for its supply chain to local managers in its 21 key markets in a bid to save £60m a year.
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The move to manage supply chains locally fits well with Diageo's growing footprint in faster-growing markets. That's because many of the brands it has acquired over the past few years, such as Meta beer in Ethiopia, have their own supply chain anyway so it makes sense to keep them local.
Managing directors in each of Diageo's 21 key markets will now be accountable for everything from suppling products to sales and marketing. But international brands will continue to be managed globally. Cost savings should be achieved in three years.
