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World of Heineken 38 - summer 2008
KEPULAUAN
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Distributor delivery mixed of Kegs to outlet in Jakarta
adapt to the changing environment," says
MBI General Manager Rick Linck. "In 2007,
the total beer market in Indonesia was back
at the same level as it had been in 1997, the
start of the Asian crisis, when the beer market
decreased significantly."
Rick says that this ability to change has been
achieved by working closely with distributors,
some of whom have long-established
relationships with MBI going back more than
a generation. "With their local knowledge and
dedication, we have been able to penetrate
into areas where our competitors are active,
and convert consumers to Bintang beer
drinkers."
"By being more focussed and setting clear
targets within the total supply chain, we have
gradually decreased our stock levels in the
supply chain from brewery to our customers,"
says Rick. "Because of this, our consumers are
also drinking fresher and fresher beer."
BY ROAD AND SEA
Indonesia is home to more than 240 million
people. It is a series of islands stretching
across three time zones covering an eighth
of the circumference of the earth from east
to west. The country's size and configuration
alone represent a supply challenge.
Manual loading Heineken product in Tangerang brewery
The ethnic and religious diversity of the
population reflects the country's centuries-
long position as a trading hub. This presents a
social and legal environment that is as diverse
as Indonesia's population. Each of the 33
provinces has its own laws and regulations
covering alcohol sales. "With around 85
per cent of the population adhering to the
Muslim faith, it also requires a sensitive and
responsible approach to marketing and
sales, something the company works hard to
achieve," Rick says.
The geography also poses unique challenges.
"The infrastructure, and the different modes
of transportation by road and sea form key
challenges for MBI," says Ida Bagus Krisna,
national account and sales operation manager
with the company. "And then we must also
make sure we comply with the various
laws and regulations that apply in different
provinces. All the same, our aim is always to
deliver our products as fresh as possible on
time and at the lowest costs."
Poor weather during the wet season leads to
irregular shipping schedules which brings an
additional dimension to the logistics of the
brewery's products, he says.
ORGANISING THE SUPPLY
"All of our products are available throughout
Indonesia, but some districts apply partial or
total alcohol restrictions," says Ida. "Almost
all five-star hotels are allowed to provide
alcoholic beverages with a special permit.
Moreover, modern market research has
shown that home consumption is increasing.
For many people, the choice against alcohol
consumption has been based on reasons
of health, more than anything else. I think
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