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BTEC level 3 Unit 35 M2
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BTEC level 3 Unit 35 M2
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For this M2 I will be explaining how an integrated supply chain may contribute to the increasedeffectiveness for Heineken. At first I will do research on what the needs of Heineken are, then when I
found the needs I will be explaining how the advantages that I talked about in P4 will help Heineken
to achieve those needs.
The first need of Heineken is the further explanation of sustainability. This first need can have impact
on three different kinds of business operations, these business operations are: profit, people and the
environment from these three points of impact I will be explaining one and from that particular one I
will also be explaining what the advantages are. I will be explaining the first point, profit. Economic
sustainability is very important within such a big company like Heineken that’s because profit is the
most important factor to keep your business alive. Economic sustainability is the way a business
manage their business operations to make sure that the profits are at the similar level or get higher.
This point correlates with the fourth of the five advantages, the opportunity to maintain/increase
market position. This advantage can contribute in this need
of Heineken in a way that they set their standards. That’s
because if Heineken wants to stay ahead of its market
competitors they need to make a higher profit. If Heineken
invests into emerging markets they need to look closely in
what markets they would like to invests and have as little
risks taken as possible when investing in new markets. An
example of this can be that Heineken needs to take a close
look in the religion, culture, needs etc. of people in those
markets. They need to do this because if Heineken invests a
lot of time and money into let’s say Iran and they didn’t
know that alcohol is illegal over there they lose a lot of
money that could have been avoided. I got this information from
file:///C:/Users/Ben%20van%20Hoorn/Downloads/Heineken_AR14_Complete_Web_Download.PDF .
The second need of Heineken is the need to mitigating the risk of out of stock also known as OOS.
Out of stock means that the supply of a product can’t meet the demand of the product. When this
happens to Heineken they lose a lot of money and if the beer can’t meet its demand for a longer time
Heineken can lose their market share. So basically mitigating the risk of OOS means that the beer of
Heineken has to meet the demand for the beer to maintain or even increase the sales and therefor
the revenue. In a couple of times the complexity of a supply chain lead to OOS, so the second
advantage ( reduce the supply chain complexity) correlates with this need of Heineken. When the
supply chain of Heineken is as simple as possible they will meet this need, this because a simple
supply chain means that participants within that supply chain can communicate in a more easy way.
A few examples of making a supply chain simple is to get your extern part of the supply chain more
involved within that supply chain and therefore make communicating with them easier. When to
communication within the supply chain of Heineken is better all the participants can calculate the
time a particular thing has to be done within a supply chain whereby the supply chain will be less
complex.
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