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BTEC level 3 Unit 35 M3
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BTEC level 3 Unit 35 M3
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for this M3 I will be explaining in what scenarios the integrated supply chain of Heineken may notwork. Because Heineken is an international company their supply chain has participants all over the
world.
In the sustainability report of Heineken is stated that the situation in Mexico is fairly bad because of
the drugs war that are going on over there. Because of the situations going on over there there is an
chance that certain specialists that are living in Europe don’t want to go to Mexico. This is because
the report states that employees of Heineken don’t want to go to Mexico because of the high
amount of violence that is in Mexico. In the report is seen that in 2012 ten people lost their live
because of violence in Mexico. Because this happens the employees are un-motivated to go to
Mexico. This may result in that Heineken and the companies in Mexico won’t be able to work
together anymore.
On page 41 of the sustainability report of Heineken, Heineken discusses child labour and how
Heineken interacts with child labour. On this page they say that the minimum age of workers by law
is 13, that one operation has a minimum of 14 but that that Heineken wants all the employees for
from the operations to be aver eighteen years of age. Heineken also states that 92.6% of the
operations verify the age of the contracted employees and that 100% of the operations checks the
age of the employees that are about to be hired.
It can also happen that the media finds out that Heineken is cooperating with companies that have
poor working conditions despite Heineken not even knowing. This will result in a huge drop of sales
because customers don’t want to give money to a company that doesn’t take care of its employees.
But this is of course too late for Heineken, so if Heineken finds out that a company has poor working
conditions Heineken will fall because Heineken doesn’t want to be connected to child labour. In the
sustainability report (p.9) Heineken says that they want to provide good working conditions for
everyone. So to achieve this Heineken founded the Beer Selling Industry Cambodia (BSIC) this
organisation provides beer sellers and promotors with better welfare and better working conditions.
As a final conclusion I think that I have explained when the integrated supply chain of Heineken may
fall and what Heineken does to prevent this to happen. I also explained what Heineken does to make
sure things like child labour won’t happen within the supply chain of Heineken or anywhere else.
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