DNV partners with Diageo in Brazil to strengthen supply chain governance through the impactful License to Operate project
Discover how DNV’s technical and digital expertise supported Diageo to implement a nationally standardized model for supplier compliance now recognized as a benchmark across global operations.
Strengthening governance in a complex supply chain
Diageo, a global leader in premium alcoholic beverages with 132 production facilities worldwide, a portfolio of over 200 brands, and sales in nearly 180 countries, operates in Brazil through a diverse network of suppliers and co-packers. As the supply chain grew in complexity, maintaining consistent standards for quality, safety, and compliance became an increasingly significant challenge.
Before launching the License to Operate (LTO) initiative, Diageo conducted supplier audits and controls through fragmented, manual processes, limiting traceability and hindering effective risk mitigation. To address this, the company set out to implement a unified and robust governance model to secure its “license to operate” across the entire value chain .
Building a standardized and digital model with DNV
To structure and standardize the LTO project, Diageo relied on the strategic support of DNV to implement enhancements to its protocol. The initiative aimed to embed excellence in safety, integrity, quality, and sustainability throughout the supply chain. DNV was selected to collaborate on this challenge due to its recognized expertise in assurance services, audits, and risk management, as well as its ability to integrate digital platforms that enhance traceability and transparency.
DNV drove project success by:
- Impartial assessment of compliance criteria for suppliers of raw material, packaging and co-packing services
- Suppliers evaluation and support for engagement across the network
- Coordination and oversight of schedules and deadlines for independent audits and corrective action plans
- Providing digital tools for real-time traceability
This combination of hands-on technical support and digital assurance enabled Diageo to achieve full visibility over supplier performance and improve control across operations.
Delivering scalable impact
The results of the LTO project were significant:
- National standardization of supplier compliance requirements
- Increased supplier engagement and clear audit expectations
- Real-time oversight of audit status and action plans
- Reduction of operational risks and improved governance
The robust implementation of the Diageo protocol in Brazil was internally recognized as a benchmark and is now being adopted by other company operations worldwide.
Looking ahead
Diageo plans to expand the use of digital assurance tools and extend the LTO framework to other audit programmes, reinforcing its global commitment to quality, safety and sustainability with DNV as a continued strategic partner.
