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Producing products of consistently high  quality at the right price is critical for creating a competitive advantage within the beer industry. We therefore engage in value-adding activities to get the most out of our resources. 

That is essentially what effectiveness and ef- ficiency are all about. Over the past decade, we have come a long way on this journey, but the bar is set high and we still have a lot more to do. 

This strategic lever has three priorities. 

## AN EFFICIENT CONSUMER- AND CUSTOMER-FOCUSED ORGANISATION 

Our customers and consumers are at the heart of what we do, and therefore our organisation should support them in the best and most efficient way. We will reduce costs that do not add value for our customers through our centralised supply chain organi- sation and our shared service centres. 

## MAXIMISE RETURN ON INVESTMENTS 

All investments throughout the value chain must create value for the Group and our shareholders. We are selective in our invest- ments and invest disproportionally more in activities that offer the greatest impact for the Group. To ensure maximum return on investments, we carry out strict return- on-investment analyses when prioritising resource and CapEx allocation, apply return- on-marketing-investment calculations and continually focus on reducing working capital. 

## SELECTED ACTIONS AND PROGRESS 2013 

An important milestone in 2013 was the kick-off of the Carlsberg Supply Company (CSC), which became operational. By bringing together Carlsberg’s central pro- curement, production, logistics and plan- ning functions under one roof, CSC is now managing the production and logistics network in Western Europe and setting the standards for the entire Group. 

A key enabler for achieving the full benefits of CSC is the roll-out of the general busi- ness standardisation project, which aims to standardise work processes across markets enabled by one common IT platform. In 2013, Carlsberg Sverige, Ringnes in Norway and CSC implemented the new platform, and all Western European markets will be on the system by the end of 2015. 

A very important task for CSC is to make sure that the Group’s products are always available at the point of purchase when 

## THE CARLSBERG WAY OF WORKING 

We have a clear understanding of what we believe is the best way of operating our busi- ness. However, we are always open to new ideas for improving what we do. To leverage the full potential of the Group, we share best practices across our business, as well as look- ing outside to learn from others. In order to use our capabilities to best effect, our tenet is “develop once – deploy everywhere”. 

the consumer wants to buy them. On-Shelf Availability (OSA) is a measure of this. In 2013, CSC designed a structured measure- ment process and a supporting reporting platform. This OSA tool will be used across markets with key customers to gather and deliver the right insights to drive timely ac- tions from supply chain and sales. 

Overall Equipment Effectiveness (OEE) is a measure of how efficiently machinery is running. The higher the OEE, the more efficient the production and the lower the costs per unit. OEE varies between the Group’s breweries for various reasons. However, all breweries can improve, and in 2013 CSC set targets for improving OEE across the Group’s breweries and launched initiatives to do so. 

