SUPPLY CHAIN CASE STUDY-
TSINGTAO BREWERY
Course Code: OMGT 1021
Course Name: Supply Chain Principles
Students:
Date of Submission: 13/10/2006
TABLE OF CONTENT
Executive Summary 4
1. Introduction 6
1.1 Investigation 6
1.2 Objectives 6
1.3 Assumptions 7
1.4 Scope 7
2. Current Situation 8
2.1 Tsingtao brewery-marketing and business strategy 8
2.2 Tsingtao brewery-supply chain policy and strategy 9
2.3Tsingtao brewery-supply chain management…………………………………………….11
3. IssuesIdentified 12
3.1 Distribution network 12
3.2 Information flow 13
3.3 Inventory level 14
4. Analyses 15
4.1 SWOT Analyses---the current situation of Tsingtao beer supply chain 15
4.1.1 Strengths: 15
4.1.2 Weaknesses: 15
4.1.3 Opportunities: 16
…show more content…
1.3 Assumptions
It is assumed that the logistics strategies outlined in this report would apply to any divisions in Tsingtao Brewery. As such, it is also assumed that other divisions run very similar supply chain management systems to that of South China Sales Company. The final assumption is that investment by the Tsingtao Group in the supply chain is a very manageable investment for them.
1.4 Scope
The scope of this investigation is limited to a pure academic exercise of Supply Chain Analysis in a real world situation. Even though, the study aims to provide insight on how to improve Tsingtao’s Supply Chain. The report is also limited to a specific division in South China. This method was chosen to enable detailed analysis of a current supply chain in action. Moreover, anglicizing on the Tsingtao’s supply chain in general would be too complex, and therefore not generate meaningful outcomes or strategies. In addition, the availability of information limits the study to a suggestion of a series of broader initiatives.
2. Current Situation
2.1 Tsingtao Brewery-marketing and business strategy
China has become the second beer market in the world today. Tsingtao Brewery is the top beer manufacturer in China. The Tsingtao Brewery was founded in 1903 by German settlers in Qingdao, China.
Supply chains manage the movement of products from the acquisition of raw materials through production and finally distribution to the end user. A properly designed supply chain can create many opportunities to drive down cost and increase revenue opportunities. In order to create a supply chain that is sustainable and flexible it is necessary to identify and align company goals and initiatives with the manufacturing and distribution of products.
A Customized Textbook, Supply Chain Management SCHM2301, ISBN9781308037400 Copies are on reserve in the library
In the first round of the root beer supply chain game there was a lot of confusion, mystery, and chaos; and the data showed that (Please see separate excel spreadsheet of data with mean, standard deviation, and variation calculated). Analysis of the data shows a classic bullwhip effect; the customer places an order and order fluctuations build up through the supply chain. You can also see that these effects are magnified as you get farther from the customer up the supply chain. This holds true for mean, standard deviation, and variation. Without proper communication between the supply chain, it felt like every group was working blind and three steps behind. This was due to
The overall objective of this chapter is to give the reader a sense of the importance of purchasing and the supply chain and how they fit in to and impacts the business environment.
The supply chain management is considered as a management concept from past two decades as the customers are concerned about timely and safe delivery. The competitiveness has been increasing among the companies to deliver the products as quickly as possible to the customers all around the world. This has made the supply chain management as a vital tool for the management. This is also measured as a competitive parameter for the companies.
Simchi, D., Kaminsky, P., Shankar, R. (2008). Designing and managing the supply chain: concepts, strategies, and case studies, 3, 384-385.
To start, it is vital to clarify the concept of a supply chain. It consists basically of all the process that the materials suffer as they flow from the source to the final customer. There are many concepts linked to this term, purchasing, warehousing, manufacturing, etc. Or more precisely: “a supply chain is a system of business enterprises that link together to satisfy consumer demand. The elements of a supply chain can be contained in the same business or be part of different companies” (Riddalls et Al., 2000)
Based upon his ten years research on supply chain issues in diverse industries such as food, fashion, apparel and automobiles he devises a framework which will help
In 2010, PepsiCo Beverage Company (PBC), a working unit of PepsiCo Inc. (PepsiCo), the second biggest sustenance and refreshment organization on the planet, got the inventory network advancement recompense from the Council of Supply Chain Management Professionals (CSCMP). PepsiCo was given this grant for its creative conveyance procedure, the "Direct to Store Delivery show", that decreased framework wide stock, disposed of stockroom space imperatives, upgraded the potential for boundless SKU development, and conveyed distribution center expense reserve funds. In the wake of indicating tremendous development in the 1990s and early2000s, PBC thought that it was hard to deal with its dispersion focuses and distribution centers.
Many companies produce products from parts of raw materials that are purchased from suppliers, till these products are reach the markets and presented for the customers, then you have the supply chain starting from the purchase of raw material from different areas , through the manufacturing steps and stages till is being sold by the consumer. Some of supply chains are well defined and easy to determined, while there are other supply chains complex to analyze. However, supply chains vary with the size of the facility such as; complexities, performance, abilities, flexibility, quality, speed, dependability and cost of preparing goods for manufacturing and the chain length distribution. So the supply chain is a network of wholesalers, retailers, distributors, workers in the transport, storage facilities, suppliers, and manufacturers who participate in the production, delivery and sale of the product to the last consumer. A supply chain is a group of facilities that coordinate activities among it and to avoid the competitors. Moreover, to ensure the supply chain management is operating efficiently and generating the highest level of customer
According to our class text Supply Chain Management’s goal is to create fast, efficient, and low-cost network of business relationships to get a company’s product from concept to market. In order to understand the goal we must know that the supply chain is the process the raw materials of a product go through in order to be available to the consumer. The relationships that the business creates are needed in order to create the product, each process the product goes through creates value, the supply chain is often called the value chain. Internet technologies are increasingly making the supply chain management process much more efficient and worth the initial investment. The supply chain management life
Tsingtao brewery has a good brand awareness and builds good word-of-mouth effect. In Canada, Tsingtao brewery established a huge selling system. In Canada and India, Tsingtao brewery uses a powerful sales model named direct
On the surface, bringing beer to China seems to be undoubtedly a good idea. The Chinese market is responsible for the consumption of a quarter of the world 's overall beer volume. Also, a tenth of the revenue from the beer industry can be traced to the Chinese market. The Chinese beer market is so massive it seems like a sure-fire way to generate an increase revenue for any beer company. The Chinese market seems so viable that many western brands are looking to expand into the market possibly as a way to compensate for lagging sales in America as a result of the increase in American preference for craft beers and local brews.
National and International businesses are becoming ever more dependent on logistics and supply chain management in order to keep pace with the demands of an increasingly global economy. This is why business leaders acknowledge that the supply chain can be a value creator and a source of competitive advantage.
Supply Chain Management: An International Journal, Volume 7, Number 5, 2002, pp. 271 – 282;