Discuss about the Transportation and Distribution for Asian Pacific Breweries.
The purpose of this paper is to analyses how effective Heineken Asian Pacific has been to the market by transporting its product within Singapore and to other countries in Asia. The paper analyses the transport method used by the company and recommending on other methods which can be used to produce a high yield. The paper also reviews the carrier criteria used by t Heineken Asian Pacific and recommend on the best carrier system to be used for shipping and distributing different products of the business, and finally, the relationship management of the carrier is analyzed and recommendations for good relationships,
Asian Pacific Breweries (APB) which changed its name to Heineken Asian Pacific is an Asian breweries company founded in 1931 at Malayan Breweries Limited in a partnership between Fraser and Neave and Heineken International. It was renamed Asian Pacific Breweries APB 1n 1989, and in 2013, it merged with Heineken International and gotten its present name.
The company sells over 40 variants and beer brands in 14 countries in the Asian Pacific, and it controls almost 30 breweries (Taveekitikun, 2008).
APB has breweries in Mongolia, Singapore, Laos, India, Sri Lanka, Thailand, Malaysia, New Caledonia, China, Vietnam, Solomon Island, New Zealand, and Papua New Guinea. The company controls the beer market in many of the Asia Pan Region, mainly in New Zealand, Papua New Guinea, Singapore, Cambodia, Malaysia, and China. In China, the beer continues to gain the market with the latest site to be established in Jia Shan, in Zhejiang Province a town close to Shanghai City.
Heineken gets competition from other breweries like Guinness, Jameson, Southern Comfort and Amarula who are trying harder to get to Singapore market. There is also a threat from the soft drink like Coca-Cola and Pepsi which are a substitute for Heineken products.
After the products of Heineken have been manufactured, they need a transport option on how the goods will reach the market. For the company transport strategy to be effective in chain management, they need not only to play one carrier against the other but to set good transport strategies. For the transport to be more effective, the company do not need to reduce the charge rate of delivering goods to their retailers, but they need to react to the dynamics of the business, its suppliers, operation, and clients (Carr and Stone, 2013).
This strategy should be organized for the goods supplied within the nation and those being exported abroad. Heineken Asian Pacific has developed strategies to ensure that all their services are delivered to their retailers and their foreign branches. They have a large truck of Lorries which enable them to deliver their products all over Singapore, and their procurement department is well organized to ensure the quality of the service is achieved. As the company operates across Asia and other products in another part of the world, they ensure that the products requested from other parts of the world are shipped the following business day after the order is placed (Cavusgil, et al, 2014). However, for the transportation to be more efficient, the business should practice the following recommendations:
The company must ensure that their products are delivered faster so that good customer relation is maintained. Heineken will make their operations fast and accurate
The company will treat their employee carefully so that the system is continuous. Such that no more expenses is spent in recruiting and orientation but the same employee are used making the process first. Maintaining the employees will also increase the morale.
The company should do the SWOT analysis to identify their strength, weaknesses, opportunity, and strength. They should capitalize on strength and opportunities. They should work on their weaknesses and also to avoid the threats. This will make the company relevant and competitive in the market.
The supply chain entails the movement of product from the producer to retailer to the customer. Therefore, Heineken Asian Pacific must implement policies that will meet the need of the customer. Customers value time and efficiency of the company hence the aspect of transportation is very vital for Heineken Asian Pacific (Rushton, et al, 2014).
Customer demand for their delivery to be shipped as per their preference. They need the product on the specified date, by the carrier of their choice, in proper shipping package method and full, both shipped delivered in good order and complete. When Heineken Asian Pacific have a transportation program that can deliver all this, customers will be satisfied with the arrangement of the company, and they will have competitive advantage over its competitors (Joshi, et al, 2014).
This is the cost and freight-Cost, insurance and freight incoterm
As a seller, you must be aware of the shipper’s liability for delivering well to the terminus. These incoterms are risk-free and recommended though they are competitive.
They allow the company to manage the cost of international shipping to the ship cost-effectively and the destination port. This enables the company to compare and to get good rates from freight forward (Setamanit and Pipatwattana, 2015).
This is the Incoterm for Delivery Duty Paid-Delivered at Place
Here the good are delivered to the warehouse of the customer or the nation of destination. The company is responsible for the good and everything that happens to the good before it is delivered to the warehouse. Therefore, they should be aware and able to manage possible complexities of the task.
The delivery company can deliver to the company with poor road network or prone to the terror attack. The country can also have many restrictions causing the delay in delivery of goods.
The transport selection goal of the company is to:
The transport management of Heineken Asian Pacific must address specific shipping issues and choose a mode that favors the company in terms of cost, rates, and services offered by competitors, special needs, the possibility of the item being damaged, delivery delay, loss, and instructions of the client.
In choosing the mode of transport, there are four principal that guides people and the company
There are four selection models that Heineken Asian Pacific can use to select the best transport method they include: cost trade off, judgment, systematic selection 1 and distribution, models
In this method, the transport manager identifies the vital factors affecting transport mode and transport problems from the shortlist of the available alternatives so that important features of the transport can be satisfied (Krishman, et al., 2014). The limitations of this approach are:
Off the effect of shipping is calculated following the immediate activities and total costs. The existence of trade is recognized by this method off within many other available approaches in an attempt to assess the situation to reduce total cost. In this approach distribution system can be optimized
Distribution approach identifies and illustrates the relationship between the composition of the distribution system at given levels, and this model is logical and mathematical. Operational conditions and practice are stimulated through this approach (Setamanit and Pipatwattana, 2015).
Heineken Asian Pacific should know how its strategies and carriers are working. This can be done using two approaches. The first mean is measuring, comparing standards and performance. The company should check the set standard, and how it performs such that when the standards are higher than performance, then the business must pull up and when the performance is higher than the standard then the business must put more effort to maintain and come up with strategies on how to maintain that Benchmarking means learning how other companies work.
The goal of the organization is to satisfy its customers by building a good reputation and providing good services. This can be achieved by following the customer’s instructions and delivering in time. Heineken Asian Pacific cannot achieve these goals single handed, but they need the support of carriers. The company has engaged in with many carrier services to ship their products making it more reliable and efficient but for this to be effective and the company to use lesser cost in shipping their products, they need to engage one reliable carrier service (Setamanit and Pipatwattana, 2015).
Heineken Asian Pacific should choose the mode of shipping their products. When the order is being placed, the company should have the options of how urgent is the order so that they can choose suitable mode to ferry the demand. They should put in place cargo planes to ferry urgent orders in abroad and cargo Lorries to ship the orders within the country. They should also check on their transit time to ensure that the customer is satisfied as the vision of the business. This will create good relationship when the deadline is achieved.
The number of carriers trying to meet with your business makes the business to develop the strategy for shipping. Frequent shipping also promotes the approach of the business. When the business supplies many items outside the country, it will attract the attention of other carrier services which will want to work for the business. Heineken Asian Pacific should not divide the business among many carriers instead it should work with one reliable carrier service. The carrier service should not be changed all the time because it will fracture the business of the company, lavage position, and negotiations. The second v will not be able to develop carrier alliances which need the business to acquire carrier chain services. Developing supply chain available programs requires a contribution of the carrier service and that of the company. Transport creates a competitive advantage for the company; therefore, it must be responsive (Graham, 2013).
Effective carrier relationship enables the carrier to advocate on behalf of the client. The two interdepend on each other hence it is important to have a healthy relationship. Without the carrier services, the business is unable to ship its product and to earn the profit, and without the company, the carrier company will have nothing to ship hence the business will be useless. Due to this the relationship between the businesses must be strong.
The benefits the company can get from strong relationship are
Conclusion
In conclusion, transporting products to the warehouse and the retailers from the manufacturing plant in the region, within the country and international can value to half of the company logistic costs. When the cost of international sourcing and the transportation to the customer are added, then the costs can be much higher. Therefore the company needs to use transportation management solution that gives the company the resource and visibility at a low cost. This is done whether the carriers are managed, a dedicated fleet is created, and reliability and control over the movement of the product to the customer are needed the company must ensure that they use effective transport system that will enable the goods to reach their destinations. This can be chosen by analyzing the type of good to be shipped and how agent the goods are (Taveekitikun, 2008).
It is also recommended that before the DDP-DAP incoterm is used the carrier company must know the topography of the area and the road network system. Also, the relationship between the supplier and the cargo company must be maintained so that the services provided might be easy and first. It is advisable that the supplier engages few companies which can provide them with better services rather than be gaining many corporations and not creating a good rapport (Johnson, 2015).
References
Carr, I., & Stone, P. (2013). International trade law. Routledge.
Cavusgil, S. T., Knight, G., Riesenberger, J. R., Rammal, H. G., & Rose, E. L. (2014). International business. Pearson Australia.
Choudhary, D., & Shankar, R. (2013). Joint decision of procurement lot-size, supplier selection, and carrier selection. Journal of Purchasing and Supply Management, 19(1), 16-26.
Graham, A. (2013). Understanding the low cost carrier and airport relationship: A critical analysis of the salient issues. Tourism Management, 36, 66-76.
Grimm, C. M. (2015). Low Cost Carriers: Emergence, Expansion and Evolution. In Journal of the Transportation Research Forum (Vol. 54, No. 2, pp. 117-118). Transportation Research Forum.
Johnson, E. (2015). Setting the benchmark: successful transportation benchmarking depends on proper alignment with a company’s strategic goals. American shipper (Jacksonville, Fla.: 1991).
Joshi, R., Choi, H., Pardo-Castellote, G., & Thiebaut, S. S. (2014). U.S. Patent No. 8,671,135. Washington, DC: U.S. Patent and Trademark Office.
Krishnan, V. I. J. A. Y. K. U. M. A. R., Groza, M. D., Groza, M. P., & Fredricks, E. (2014). Linking Customer Relationship Management (CRM) Process to Sales Performance. The role of CRM Technology Effectiveness. Marketing Management Journal, 24(2), 162-171.
Rushton, A., Croucher, P., & Baker, P. (2014). The handbook of logistics and distribution management: Understanding the supply chain. Kogan Page Publishers.
Setamanit, S. O., & Pipatwattana, A. (2015). Criteria for ocean freight carrier selection: A perspective of Japanese automotive company in Thailand. ASBBS E-Journal, 11(1), 89.
Taveekitikun, T. (2008). Heineken in Asia Pacific. ?????? ???????? ?????? (Journal of Management Sciences), 25(1), 41-46.
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