A matter of log(ist)ical thinking
Buckler appoints Lintas as European network agency
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Corporate Distribution and Logistics advises operating companies
Getting the finished product to the customer in the most cost-
effective way possible. You might say that this definition is a
fair reflection of what a physical distribution department ought
to do. But appearances are deceptive, since logistics (of which
physical distribution forms part) involves a great deal more.
Following in footsteps of Heineken brand
Starting this month the Lintas agency is to handle all advertis
ing for the Buckler non-alcohol beer brand in Europe. Holland,
France, Italy and Portugal were already using Lintas' services.
They will now be joined by Spain, Greece, Belgium and
Switzerland.
HEINEKEN INTERNATIONAL MAGAZINE NR. 29 PAGE 3
Cora Nieveen, Jan Teeuwen, Henk van Rooyen,
Herbert Schaap, Herman Bakker and Martin
Kroon. Sitting, left to rightCharlie Rabelink,
Henk van Klompenburg, Marc Veldkamp and
Robert van Bergen.
Naturally, the definition in the
first sentence of this story does con
tain a grain of truth. But logistics is
more than just moving goods from
A to B. It already starts with the
preparation of delivery plans for
brewing raw materials and packag
ing materials. When do these goods
have to arrive at the brewery? How
big a stock is needed? What are we
going to produce, where, and
when? How much finished product
has to be kept in stock so that we
don't have to disappoint our
customers? Where should we keep
this stock so that we can offer our
customers (usually the trade) the
best service at the lowest cost.
Orderly
Clearly, therefore, logistics plan
ning and activities have to be inter
linked throughout the brewery.
From the moment when the auxili
ary and raw materials are driven
onto the brewery site until the mo
ment when the beer reaches the
customer. That flow of goods, right
through the entire production pro
cess and the trade channels, has to
be orderly and efficient and in line
with the market situation. Logistics
is in fact the link between what pro
duction can produce and what the
market wants.
It is the task of the Amsterdam-
based CDL department (Corporate
Distribution and Logistics) to
provide advice and assistance to
Heineken breweries world-wide on
logistics problems. The depart
ment, set up in 1979 as Corporate
Physical Distribution, was a logical
follow-up to the recommendations
submitted to Heineken Nederland
by a small group of experts. 'In
those first years, therefore, the
main thrust of our work was in the
Netherlands. Later on, we tackled
projects in France, Italy and
Greece and, as the years pro
gressed, the whole world became
the operating area for our depart
ment', explains Kees Zandvliet, re
cently appointed head of CDL.
Diversified
Over the past eleven years the
nature of the department's work
has changed greatly. Whereas the
emphasis was formerly on provid
ing technical solutions in the dis
tribution field, its activities in re
cent years have been increasingly
geared to the overall flow of goods
as they move through the brewery
and are transported further to the
customer.
The projects that CDL under
takes are therefore of a highly di
versified nature. For the Common
wealth Brewery on the Bahamas
CDL developed a logistics control
system, for Bralima in Zaïre CDL
carried out a survey into the poten
tial for a better distribution set-up
in relation to local opportunities
and the competitive position.
Sometimes a project can last as
much as a year. A short project
takes about a month to complete.
Paperwork
In every project the CDL con
sultant needs lots of information as
a basis for his work. In the relevant
country he collects data on market
developments, sales figures, the
structure of the range, production
capacities, the distributive
organisation, and figures on, say,
wage levels, costs of transport, mar
gins, etc. On the basis of all these
data the CDL consultant identifies
where the problems lie and what
solutions are feasible. Mr Henk van
Rooijen, a senior consultant with
CDL, says that the basic aim of
such studies has changed a great
deal over the past few years. 'In the
past distribution studies were al
ways aimed at securing an econom
ic gain. In recent years we have in
creasingly started to appreciate
that distribution is a marketing in
strument, which means that you
must also look at cost-effective
ness, at the standard of service.'
Ivory tower
But looking into problems and
making recommendations is not all
that CDL does. 'We mustn't sit in
an ivory tower, but get together
more with the operating company
itself in seeking solutions. Our
work doesn't end when we write a
report and present our plans to the
local management. We have to see
to it that those plans are put into
practice as well', believes Kees
Zandvliet. His department may
therefore also provide monitoring
and guidance to local employees in
implementing the recommenda
tions made by CDL.
In addition, his department
makes progress checks on people
on training courses, whilst parts of
some training courses are also han
dled by CDL itself.
Local market
The solutions which CDL thinks
up together with the operating
company are always based on the
actual situation in the local beer
market. Close co-ordination with
the commercial and marketing de
partments is essential here.
Over the next decade that ability
to 'feel' what's about to happen on
the beer market will become even
more important than it already is.
Changes in the beer market will
make it even more complex to con
trol and manage the flow of goods.
CDL will find itself having to
deal with aspects such as: a broader
and more in-depth product range,
smaller orders per product, more
orders, shorter delivery times,
lower trade stocks and greater
numbers of packs. 'The competi
tive edge of Heineken will be deter
mined more and more by our abil
ity to respond flexibly to these
changes', claims Kees Zandvliet.
Until recently Lintas Amster
dam was the 'lead agency' in de
veloping a multi-country campaign
for Buckler. 'Several years ago we
decided on a 'pan-European' ap
proach for Buckler, coupled with a
pan-European advertising cam
paign. The product has the same
positioning everywhere in Europe
and so the campaign is also more or
less identical in all these countries',
explains Gary den Hertog, Buckler
brand manager Europe.
That approach was possible be
cause the segment for non-alcohol
beers was still in its infancy several
years ago. But, particularly since
the launch of Buckler, the non-alco
hol beers segment has showed such
spectacular growth that a network
agency became an obvious choice.
A European Lintas team has
now been given the task of coordi
nating the Buckler account within
the Lintas network of agencies.
Creative input for the campaign
will be in the hands of Lintas repre
sentatives from France, Spain and
To celebrate the co-operation, Lin
tas Amsterdam sent the marketing
department at Heineken head office
this cake - topped by a Buckler bot
tle made of marzipan. Marketing
department staff pictured here are
(from left): Alex van heeringen, Pe
ter Dadzis, Ellen Gruter, Marietta
Julio, Thomas Hakkaart and Gary
den Hertog.
Holland. Their job is to study the
strategy mapped out by Corporate
Advertising in co-operation with
the relevant operating companies
and then translate the concepts
into a full-scale advertising cam
paign.
Following in the footsteps of the
Heineken brand. Buckler has there
for now also opted for a Europe-
wide appraoch to its advertising ac
tivities. Last spring J. Walter
Thompson was chosen as the net
work agency for Heineken. The de
cision to engage a different network
agency for Buckler fits in with the
Heineken strategy of treating the
corporate brands separately. As
Gary den Hertog sees it, the major
benefits brought by a network
agency are that 'Buckler's identity
can be clearly maintained, but then
tailored to local market circum
stances. On top of that, we will get
greater benefits in efficiency, both
in advertising production and in
the total audience we can reach.
Today, in fact, advertising in Eu
rope is much less restricted by na
tional borders.'
