STAR CHAIN PROJECT
MAKES DISTRIBUTION
A LOT EASIER
Star Chain
Distributing beer in the USA seems so simple. But, if you consider
such aspects as 3,000 to 8,000 miles of ocean, multiple brands
and pack sizes, multiple configurations of those packages,
government-mandated labelling requirements, the different
types of product required for different states and a need for
freshness, then all of a sudden the distribution of beer starts to
become a complex issue. That's why Heineken USA, Heineken
Export Group and Heineken Nederland have worked together on
the Star Chain project, aimed at making distribution faster and
much more efficient.
Heineken USA sells its beers to 425 independent wholesalers,
who demand prompt delivery of their orders. In the competitive
US beer market the rules of the game are simple: if your products
are not delivered in time, your space in the warehouse is filled in
by other brands. Reason enough for Heineken USA to study a
totally new concept for moving beer from Holland to the U.S.
This process started several years ago with the development of
HOPS, the Heineken Operations Planning System. This system
revolutionised the way distributors ordered from Heineken USA.
Before HOPS, district managers took orders manually and then
fed them to the Heineken USA corporate office in White Plains.
Eventually the order reached the brewery in Holland and the beer
was then brewed on the basis of those orders. Which meant a
twelve-week lead-time to delivery. HOPS - the industry's first
internet-based ordering system - reduced that lead-time to six
weeks. HOPS was so innovative that it won several awards for
e-business excellence.
The next step came in conjunction with the establishment of the
Star Chain project. This global supply chain project was designed
to fully integrate and streamline the entire process of beer making
and distribution; from gathering raw materials for the Dutch
