Demand points
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breweries to moving the beer to the customers in the United States
and to export markets around the world.
For Heineken USA the major change was the way in which beer
shipments destined for the US would be organised. In the past
beer was brewed based on orders and made up into orders for
individual distributors. This led to a mixing of brands, packages
and package configurations within containers. In the new system
demand points have been established. These demand points are
full-service distribution centres which are provided every week
with beer that is produced on the basis of demand forecasts.
These demand points monitor customs clearance, handle product
storage and execute distributor deliveries.
Heineken USA now has ten demand points, all of them located near
major seaports. The demand points will enhance Heineken USA's
distribution by improving the flow of products, which will mean
fewer ocean shipments, an improvement in distributor order lead
times and inventory levels and a better overall customer service
to distributors. This improved level of service includes a maximum
order lead-time of ten days (down from an average of eight weeks),
reducing distribution inventory levels from an average of 38 days
to 14 days. As a result, the freshness of the beer is comparable to
that of the best domestic brewer (down from an average of 89 days
to 45 days). The benefit of the demand points is threefold. It not
only helps Heineken USA and its distributors. There are also
benefits for the brewery in Holland. Instead of having 425 different
order points, the brewery now only has ten. The consolidation of
orders reduces the number of times that production lines have to
be changed, and that in turn brings improvements in production
planning and scheduling.
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