1. About Heineken and
Heineken Netherlands Supply (HNS)
Heineken is one of the world’s greatest brewers and
has a global network of distributors and 125 breweries
in more than 70 countries. The principal international
brand is Heineken but the Heineken Group brews
and sells over 200 beers and ciders. Of the 125 million
Hectolitres sold by Heineken in 2009, approximately
14% was produced by Heineken Netherlands Supply
(HNS) in 3 breweries in the Netherlands. In the
3 breweries, more than 900 SKU’s are produced on
30 packaging lines and sold to over 150 countries.
The workforce of HNS consists of approximately
1,300 employees.
Customer case Heineken Netherlands
“Better, faster management information and KPI measurement”
Heineken’s Corporate Strategy is “to be a leading
brewer in each of the markets in which it operates
and to have the world’s most prominent brand
portfolio (with Heineken as leading premium beer)”.
The strategy of HNS – linked to the NV-strategy –
is “to remain the sustainable, preferred supplier
for our existing and future customers by providing
the right product with the right quality/volume
at the right time in the right place at the best price”.
Heineken is one of the world’s greatest brewers of beers and ciders.
2. The logistic objectives of HNS
The logistic objectives that follow from this
integrated strategy can loosely be defined as…
1. Doing the right things ( being effective):
- Pre-set service and quality;
- Being the best in class for New Product
Introductions (i.e. cost level and time to market).
2. Doing the right things the first time right
( being efficient):
- Being the best in class for productivity;
- Ensure sustained low (transfer) prices;
- Reduce working capital.
The Supply Chain Set-up and Organization
at HNS is as described in picture to the upper right.
At HNS, 3 planning departments are responsible
for decisions on a strategic, tactical and operational
level (see the chart to the lower right).
Implementation of Every Angle
Every Angle was implemented in 2007 and was
initially used to improve data quality and reliability
and quickly obtain difficult to access SAP data.
A very powerful additional gain was that the SAP
users changed their sentiment and attitude towards
SAP in a very short time for the better. They suddenly
saw more clearly the benefit of the SAP system
and the way it helps Heineken to execute their daily
processes in an efficient way.
It became a powerful tool to help management and
staff members to answer questions regarding overall
stock levels (in order to reduce working capital),
measure the conformance to schedule of departures
of vessels from the Rotterdam Harbour and even
determine the carbon footprint of HNS.
Strategic
Tactical
Operational
Planning and Contol Framework:
Heineken Netherlands
The Supply Chain Set-up and
Organization at HNS
HUSA
ROW
HNL
Distributors
Distributors
Retail DC
Wholesale
Retail
Retail
Retail
On-site
Heineken Netherlands Supply Chain Management
Inbound
Logistics
Brewing
Packing
Buying
Suppliers
Contract
Mgt
Outbound
Logistics
Market Demand Management
Long-term
Forecast
Aggregate
Production
Planning
Materials
Requirements
Planning
Capacity
Requirements
Planning
Sales and
Operations
Planning
Shop Floor
Control
Input-output
(I/O) Control
Firm Orders
Intermediate
Forecast
Demand
management
Production
Scheduling
Financial
Planning
Strategy and
Objectives
Master
Production
Scheduling
Rough-cut
Capacity
Planning
Resource
Planning
3. Anton de Romijn, Strategic Supply Chain Analyst
Heineken Netherlands:
“The successful implementation of Every Angle has
had many positive effects. Staff members now have
a more accurate and up to date view of the achieved
performance of HNS, which has motivated them to
realize good scores. I also expect that the increased
understanding of the relationship between the different
KPIs will lead to a continuous optimization cycle.”
Fred Holvast, Logistics Director
Heineken Netherlands:
“Every Angle and the KPI Dashboard helps the
management of the breweries to get a better grip on
the overall performance of the supply chain, which will
ultimately help Heineken Netherlands to service its
domestic and international customers better against
lower costs.”
SOP Dashboard and the
Every Angle Dashboard Engine
Heineken is one of the first companies in the world
using the new Every Angle Dashboard Engine within
the area of Sales Operations Planning. The KPIs are
presented on an easily accessible (internal) website
of HNS and consists of several stock overviews, service
levels, lead times in the supply chain and measure
ments for forecast accuracy and bias. Usually, the
interpretation and analysis of this kind of data is a
well known, notoriously difficult exercise, but using
the new Every Angle ETL toolset, this topic is solved
with a minimum of effort. An overview of the most
important KPIs of Heineken Netherlands is presented
as a balanced score card. In a historic overview,
Heineken’s management can quickly evaluate the
progress on the KPIs, compare the performance with
pre-set targets, and slice dice the data using the
powerful and intuitive drill down functionality
of the KPI Dashboard.
The data for this SOP Dashboard is provided by
the EveryAngle Dashboard Engine mainly from SAP,
but also from sources in Oracle, SQL and even Excel.
The results gained by Heineken by implementing
Every Angle are very positive. The pay back time
of the overall investment was relatively short.
The most important results are:
• Improved data reliability in master data
and transaction data;
• Improved user acceptance and better use of
the SAP system;
• Stronger grip on the overall performance
of the supply chain;
• Lower stocks;
• Better, faster management information
and KPI measurement.
Results
Heineken