British American Tobacco Included Within Exclusive Supply Chain Management Feature in 'Australia's Best' Magazine

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Australia-based British American Tobacco has been included in a special feature of supply chain management within the industry-heavyweight magazine, Australia's Best.

Australia's Best Magazine has confirmed the inclusion of British American Tobacco in an exclusive editorial feature of procurement strategies at one of the world's most biggest tobacco companies. The article on BAT Australia has been published in July 2008 and is set for national distribution to the top manufacturing companies in Australia.

British American Tobacco Australia Limited (BAT Australia) is part of one of the world's most international tobacco groups - British American Tobacco. Headquartered in Sydney, BAT Australia is a wholly owned subsidiary of British American Tobacco p.l.c. in London.

Formed in 1999, as a result of a global merger, BAT Australia is Australia's leading cigarette company with a 46 percent market share.* The company employs over 1200 full time employees, with more than 800 of these based at the manufacturing facility in Sydney.

The British American Tobacco Group seeks to achieve both quantitative and qualitative leadership of the global tobacco market through its key strategy pillars of growth, productivity and responsibility, enabled by a winning organisation. These strategic pillars drive all aspects of their business, both globally and locally in each market. Supply chain management is no exception.

When it comes to procurement at BAT Australia there's a clear vision - to drive demand and smart spend management, enable innovation and build quality partnerships across the business by becoming the leading edge procurement function amongst FMCG companies.

BAT Australia achieves these objectives by obtaining the best overall value for each purchasing dollar spent and assuring the timely delivery of goods and services to meet company requirements. Equally important in achieving their company goals is the continuous search for new products, equipment and services to improve productivity, cultivating mutually beneficial relationships with suppliers and adhering to the highest ethical standards in all their business dealings.

When taking on a new supplier or reviewing an existing one, BAT Australia follows a leading edge strategic sourcing process which involves procurement working closely with BAT Australia business units and stakeholders. This process involves devolving requirements and needs, looking at innovations and the latest market trends, developing and implementing sourcing and negotiation strategies as well as addressing the final selection and implementation.
The value of this strategic sourcing approach was recognised at the CIPSA (Chartered Institute of Purchasing and Supply Australia) Awards in 2007 where the BAT Australia procurement team was presented with the award for Best Cross-Functional team work.

The type of relationship BAT Australia enters into with its suppliers is dependent on the individual circumstances, but may be broken into the following categories: Strategic, Leverage and Routine.

Within the Strategic supplier category, BAT Australia works on developing integrated partnerships with its suppliers. Long term relationships maintained with suppliers are based on solid performance from the suppliers; however factors such as price and transparency are also important elements in building a lasting affiliation. In response to their suppliers' strong performance, BAT Australia offers their commitment in helping their suppliers improve and develop as a business. BAT Australia rely on their suppliers to bring their expertise and a core business approach to the forefront in an effort to produce the best possible result for all involved.

The Leverage and Routine supplier categories, put simply, require less complex management with minimal monitoring for ongoing compliance built in.

BAT Australia uses supplier management processes to its advantage by unlocking value for mutual benefit. Striving for continuous improvement, BAT Australia is always looking to develop and grow with its suppliers.

*Nielsen Retail Audit - YTD March 2008

Key suppliers to British American Tobacco in Australia include Colmar Brunton and Schawk.

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CHRIS DUTTON
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