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BTEC level 3 Unit 35 P3
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BTEC level 3 Unit 35 P3
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By: maureenkoek1 • 2 year ago
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For this P3 I will be describing ways in which the supply chain for Heineken has been integrated. I willdescribe ways in which the supply chain for Heineken has been integrated. I will use relevant items
that are applied to Heineken.
Above is the supply chain of Heineken, this supply chain is divided into different parts, the agriculture
of the raw materials, the brewing of the beer, the transportation to the customer and the production
of packing materials. The first step within an supply chain that is integrated is the horizontal
integration of that particular supply chain (in my case Heineken). Horizontal integration is connected
to the process that happens within the internal processes of a manufacturer. So for horizontal
integration every process needs to be connected with each other. So in the first step and the second
step of the supply chain is the production of the beer we call the production line. Within the first two
steps of the supply chain every process is very timely arranged this because if all the products are
done at the right time the machines can work all the time and as fluently as possible. The factories
that Heineken uses are also doing better for the environment for example in 2012 they managed to
reduce the emission of CO2 with 5%1. The third part of the supply chain is the transportation of the
beer for the transportation Heineken uses trucks to transport the beer within certain countries.
Heineken doesn’t ship their beer because they have different breweries all over the world.
Within vertical integration there are two main steps, the first is the integration of the supply chain
between Heineken and external suppliers also known as the upstream part within a supply chain. The
second step within vertical integration is the integration between the manufacturer (Heineken) and
the external distribution channels these are also known as the downstream supply chain participants.
The first thing that happens in the first step is sourcing this means that Heineken goes and look for
companies that for examples make their bottles. When Heineken has found a different amount of
suppliers they will go and compare them with each other. The compare these suppliers in prices,
quality, time etc. When Heineken wats to compare these suppliers with each other they of course
need information so they approach the suppliers and ask about their prices, quality, delivery time,
credit terms etc. Based on the information given they compare these suppliers based on risks that
Heineken may have to take. After Heineken has compared the suppliers they will negotiate about the
terms and set up a contract. When done this the search for a supplier is done.
1http://www.duurzaamgeproduceerd.nl/nieuws/20130715-heineken-brengt-co2-uitstoot-in-2012-met-5-
procent-omlaag
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