Supply Chain Performance Assessment Of Brewery Industry The Case Of Heineken Brewery

In this thesis, the researcher assessed the perceived performance of supply chain in the case ofrnHeineken brewery companies in Addis Ababa. The study focused on seven supply chainrnperformance variables, integration with suppliers, integration with customers, supply chainrnreliability, supply chain responsiveness, supply chain agility, supply chain operational cost andrninventory management Practice. The main objective of this paper is to get in-depth insight aboutrnthe supply chain performance of Sales outlet in the case of Heineken brewery. The researchrnstrategy of this study is a multiple case study and the brewery companies were the unit ofrnanalysis. Moreover, the study included first tier local strategic suppliers and their first andrnsecond tier customers of the case breweries to ensure the reliability of the research output. Thernresearch design applied was mixed approach. The quantitative data was analyzed using SPSS forrndescriptive statistics and the qualitative data was used to further explain the findings of thernquantitative data. The finding of the study indicates that the downward supply chain is morernreliable and flexible than the upstream supply chain. The supply chain operation of the case ofrnHeineken breweries was perceived high. The study also found the gap related to joint planning,rnforecasting and sharing of supply chain information of the case breweries with their suppliersrnand customers. This study also identified gaps in managing supply chain inventories in relationrnto visibility of the inventory status along the supply chain.rnIn conclusion, the Heineken breweries focus on responsiveness and reliability with highrnoperational cost. The case brewery companies collaborate with their chain partners only onrnlimited areas. The level of trust is also minimal due to high completion with rivalries.rnConsequently, long term demand forecast or sales forecast are very rarely shared with channelrnpartners. The inventory management practice also shows potential risk of holding overstock orrnunder stock due to lack of using standard inventory management tools consistently. Thernupstream supply chain is less reliable and flexible due to limited local suppliers‟ capacity as wellrnas long import process than the downward supply chain and that the supply chain operationalrncost along the chain was considered high.

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