Standards bring millions in benefits for Baltika Breweries

Summary

Baltica Breweries, part of the Carlsberg Group and headquartered in St. Petersburg, Russia, efficiently produces 520 million liters of beer monthly using a variety of international standards. These standards, including ISO 9001, 14001, and 10002, have enhanced operational efficiency, quality management, and customer service. By optimizing procurement, production, distribution, and customer feedback processes, Baltica has saved 3 billion rubles annually. CEO Issac Shep emphasizes that these standards provide a unified 'language' for communication within the company, across suppliers, and internationally, driving continuous improvement and fostering better relationships with stakeholders.

Takeaways

• 😀 Baltica Breweries is based in St. Petersburg, Russia, and is part of the Carlsberg Group.
• 😀 The company produces 520 million liters of beer every month.
• 😀 Baltica uses a wide range of operational standards to improve efficiency across its breweries.
• 😀 Implementing standards helps Baltica create a unified approach to operations across different breweries and functions.
• 😀 The adoption of standards helped Baltica save 3 billion rubles, which represents 3.4% of its annual revenue.
• 😀 Standards improve procurement, production, distribution, and after-sales services.
• 😀 Using quality management systems with suppliers ensures consistent, high-quality ingredients and reduces the need for frequent lab testing.
• 😀 ISO 9001 and 14001 management systems have optimized operations across Baltica's factories and improved integration with acquired companies.
• 😀 Standardized railway wagons have helped Baltica develop a nationwide distribution network.
• 😀 ISO 10002 for customer complaints handling encourages customer feedback, which improves product quality.
• 😀 CEO Isaac Shep emphasizes that standards provide a common language, enhancing communication both within the organization and with external stakeholders, including businesses and countries.

Q & A

What is the main focus of the Baltica brewery's approach to improving its performance?

The main focus is the use of standards to create a systematic and efficient way of doing things across different breweries and functions, improving both effectiveness and efficiency.

How does Baltica brewery use standards to improve its operations?

Baltica brewery applies standards in various areas such as procurement, production, distribution, and after-sales services. This ensures consistency, enhances efficiency, and improves quality control.

What financial benefit has Baltica gained from using standards?

By using standards, Baltica saved 3 billion rubles, which is about 3.4% of its annual revenue.

How does the implementation of standards impact the company's procurement process?

Standards require suppliers to implement robust quality management systems, ensuring that ingredients are consistently of high quality and reducing the need for frequent lab testing.

What specific standards have Baltica implemented to optimize its operations?

Baltica uses ISO 9001 and ISO 14001 standards to optimize operations between factories and better integrate the companies it has acquired.

How has the use of standards helped Baltica in distribution?

The use of standards for railway wagons has enabled Baltica to develop a successful nationwide distribution network.

What role does the ISO 10002 standard play in Baltica's customer service?

ISO 10002 helps Baltica handle customer complaints effectively and encourages customers to share their suggestions, leading to product improvements.

Why does CEO Issac Shep consider standards important in the business context?

Issac Shep believes standards are crucial because they create a common language both within the organization and between businesses, countries, and stakeholders, facilitating communication and cooperation.

What is meant by a 'common language of standards' in Baltica's operations?

A common language of standards refers to using consistent practices and terminology across different functions and regions, helping to align operations and enhance communication between all parties involved.

How do standards help in international business for companies like Baltica?

Standards help create uniform practices that make it easier to communicate and cooperate between businesses across different countries, enabling smoother operations and reducing misunderstandings.