Essay on Supply Chain---Tingtao Beer

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Course Code: OMGT 1021
Course Name: Supply Chain Principles
Date of Submission: 13/10/2006

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
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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.
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