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BTEC level 3 Unit 35 D1
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BTEC level 3 Unit 35 D1
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In this D1 I will be evaluating the degree of organizational change necessary to exploit theadvantages of an integrated supply chain of Heineken. I will identify what changes are necessary
within the supply chain of Heineken, I will also explain how these changes improve the operations of
Heineken and finally I will explain the benefits that Heineken has from these improvements. I will do
this all using the case study given by our teacher.
The change that was necessary within the supply chain of Heineken is that the supply chain is made
less complex. The supply chain is made less complex by communicating better with the 425 separate
local distributers of Heineken beer. When the communication between Heineken and it’s distributor
is done right the supply chain will be more flowed because the supplier then know what and when
something has to be delivered. Heineken has also made its supply chain more fluently by making an
system that keeps track of the stock, on this way Heineken knows when something has to be
produced and how many units of that particular product should be produced.
These changes within the Heineken supply chain also improved Heineken’s operation in a way that
they are able to make more products within the same time they had before. This is again done by a
better way of communicating with customers. As said earlier Heineken also implemented different
systems for example an EDI system with the use of this particular system Heineken keeps track of its
stocks and this system doesn’t need a lot of afford for employees because the EDI system is all
arranged via computers. By using this system Heineken is able to measure the stocks at any time and
produce let’s say more beer when the stock of beer is low.
The benefits that Heineken gets from the improvements within the supply chain are that with the
use of good communication Heineken will save a lot of money. This is again done by better
communicating and the use of different technological systems. This is because when for example the
EDI system is used it will only cost money to place these systems and to maintain these systems, but
when people where used you have to pay them their wages every time they work and with this
system you need to spend money when they are broken or need to be maintenanced. Another
benefit that Heineken gets from the improvements to the supply chain is that customers and
suppliers will be happier to work for Heineken. The customers will be more happy because with the
use of the EDI system there will always be beer in the stores for him to buy. The suppliers will be
happy because the cooperation with Heineken goes well, so they get a good reputation and see that
their hard work has a great outcome.
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