Answer to Question #213332 in Management for Nablis

Question

Supply-Chain Management –

a. What is the supply chain strategy for Heineken Breweries company?

b. How is vendor selection/purchasing handled on Heineken Breweries ?

c. Discuss how the supply chain is managed on Heineken Breweries .

d. Discuss materials management/distribution on Heineken Breweries.

e. Is e-commerce applied in any form on Heineken Breweries ?

Answer 1

a) Heineken Breweries company uses a digital supply chain strategy. Raw materials are sourced from their farms and the grains are taken which are then taken to the industry for the manufacturing process. From the breweries, the beer is transported worldwide to Heineken's distributors ( Cider & Perry England, Coors light United States). The stores put purchase orders to the distributor who then ships the product to them. The stores obviously are now responsible to sell the products to the final consumer which is us.

b) Heineken have a great relationship with suppliers in order to improve information and product flows, and reduce surprises from demand fluctuations, enhance internal processes integration, work with suppliers to reduce lead times, reduce risk of supply disruption, mitigate the bullwhip effect, reduce supply chain cost of all members through collaboration and trust. Heineken suppliers are selected through a keen strategy focusing on the ones with a continuous supply of grains and related raw materials.

c) The grains and hops are transported to the brewery through trucks as well as which are needed. The cans and bottles are transported through trucks by cargo ships which depending on where they come from they can be considering as well as making it worthy in better ways. The first process is getting raw materials. Heineken has farms that supply raw materials which a machine picks grains and hops. The breweries the beer is transported worldwide to Heineken’s distributors.

d) The supply chain organization contributors have to reduce costs by handling inventory levels in manufacturing delivery cable. As stated by Maye et al. (2016), the local incomplete global evidence is about record levels and instructions. It is also a retailer that knows real end customers' demand. Stock costs are twofold as tall as list carrying prices. The inventory cost variations and fluctuations take home in SC. When live willing is frolicked dissimilar people without the similar construction like results are produced. The buyers and distortion propagate upstream in an amplified form are called forester effects. Unproductive use of resources such work and conveyance due to fact whether properties prearranged built on typical directive customary by talent or based on thoroughgoing order.

e) The e-commerce effort began in August of 2017 when Heineken which also owns Tecate, Dos Equis, Strongbow, Red Stripe, and Newcastle, among other beer companies, launched a Heineken-only store at now.heineken.com, as well as a separate site for Dos Equis at store.doseequis.com. Data showed a strong customer preference for having variety online, so in April, Heineken launched a new e-commerce site on which to sell and deliver beer from eight of its companies: Heineken, Dos Equis, Tecate, Strongbow, Red Stripe, Amstel Light, Newcastle, and Affligem. It currently does its supply chain, procurement, sales and marketing, and data storage online after engaging in e-commerce.