Performance Improvement in the Private Sector
EY partnered with global beverage leader Diageo to conceive and lead an enterprise-wide digital supply chain transformation. The project has brought data analytics, AI and technology to the forefront of value creation, unlocking significant ongoing financial benefits and drastically reducing the water and carbon footprint of Diageo’s operations, which will help the business hit its market share goals and become carbon neutral by 2030.
The EY team partnered with Diageo – a global leader in premium drinks with sales in around 180 countries – to conceive and lead an enterprise-wide digital supply chain transformation. This consisted of crafting a strategic 2030 vision and defining the capabilities required to digitise the supply chain, knitting data, technology, people and processes together, and implementing these in a global programme to create significant value across the business, contributing to Diageo’s 2030 financial and sustainability objectives.
Working together with Diageo, we used a combination of the EY team’s insights and collaboration with strategic partners to define a future-fit strategy and lasting capabilities. This strategy brings together data, analytics, artificial intelligence (AI) and technology to the forefront of value creation supported by a people journey to drive digital skills and culture to deliver Diageo’s digital future.
The strategy was built on five interconnected pillars spanning the entire value chain:
1. Consumer Connected
To enhance innovation and product management, we assessed Diageo’s innovation capabilities against leading peers to inform the strategic roadmap for driving a closer connection with the consumer.
2. Self-Driving Value Chain – intelligent and integrated business planning
To improve Diageo’s responsiveness to market changes by integrating statistics with market intelligence and enhancing reliability and adaptability across the end-to-end planning processes.
3. Operational Excellence – Scotch Intelligence Platform
To deliver a world-first for Diageo by digitising its Scotch (whisky) supply chain from grain to glass. The EY team built three cutting-edge digital products, including a world-first trading marketplace.
4. Operational Excellence – Smart Manufacturing
To enable touchless and augmented operations to improve safety, agility, efficiency and sustainability – putting in place better capabilities for data standardisation, intelligent automation and touchless flows.
5. Integrated Ecosystem
To transform Procurement and how Diageo partners with its Suppliers to enable a joined-up ecosystem – leveraging capabilities like advanced automation and supply risk visibility.
We drew on design thinking using the EY’s team’s innovation hubs – known as Wavespace – to foster innovation and challenge conventional thinking at Diageo to unlock fresh ideas. We brought together the best of the global EY organisation and our alliances – a diverse team with a varied set of experiences, skills and capabilities to support the definition and delivery of Diageo’s digital strategy, including our external alliance partners such as Aera, Microsoft, Databricks and P&G.
The collaboration positions Diageo for long-term success in a competitive landscape and is directly aligned to Diageo’s core business objectives, delivering tangible value for Diageo’s people, shareholders and the wider society. It is set to unlock significant ongoing financial benefits and drastically reduce the water and carbon footprint of Diageo’s operations – accelerating its journey to its Society 2030 objectives. It has also delivered considerable strategic value to the global EY organisation.
We think all those involved in the project from both organisations can be proud. Not only has it pushed Diageo’s supply chain to reach the next level of maturity, but it demonstrates how the Consulting industry can be a positive force for change through partnering and collaboration.
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