BEER
CAN
TRAVEL
World of Heineken 41 winter 2009
Harry Werkman and his team must ensure
that all the necessary paperwork for each
sealed container is ready to be shown to US
customs officials 24 hours before the ship
that will carry it to the USA even docks in
Rotterdam. "A great deal of information must
be exchanged in a timely manner to ensure
that there are no delays at the wharf," says
Fred.
In addition, the supply chain has been
optimised to reduce costs and C02 emissions.
For example, the Zoeterwoude brewery
has a container-sharing arrangement with
a nearby import company that ensures that
trucks never travel with empty containers,
effectively saving two truck trips for every
container. "That translates to a substantial
saving in costs and C02 emissions," says
Fred. "In the case of the Hawaii supply
chain, it means 600 containers a year, which
translates to 1,200 truck journeys saved."
As an acknowledged leader in sustainability,
Heineken is always looking for ways to
improve its performance in this area. In line
with this, Heineken Netherlands will reduce
the amount of road transport involved in
the Hawaii supply chain substantially by
the middle of 2010. Trucks will carry the
containers from Zoeterwoude to wharfs
on the Old Rhine river, where they will be
loaded onto barges. The boats are capable
of transporting 45 containers each, and each
shipment represents several truckloads, with
a fraction of the C02 emissions, says Fred.
Once loaded in Rotterdam, the bottles cross
the Atlantic. The actual route depends on
the vessel's other destinations. After about
30 days at sea, the container of Heineken® is
offloaded in Long Beach, near Los Angeles, in
California.
Planning for the Hawaii supply chain must
take account of the fact that non-US ships
may not carry cargo from one US port to
another, explains Greg Sommer, Market
Demand Manager responsible for Heineken
North America. "The Heineken shipment
will have been cleared by US Customs four
days before it reaches port. On arrival, the
container is transferred to a US ship for the
week-long third leg of its journey from Long
Beach to the harbour of Honolulu, the State
Capital of Hawaii, on the island of Oahu.
More recently, Heineken has started shipping
directly to some of the outer Hawaiian
islands as well. "Using this direct method,
we also eliminate substantial savings in
road transport costs and C02 emissions by
having more than half of the beer effectively
bypassing our California warehouse," says
Greg.
Extra shipments from HUSA's Long Beach
warehouse are laid on to meet the growing
demand, he adds.
Refining the Hawaii supply chain by the
addition of direct deliveries to the outer
islands, rather than relying on a single point
of delivery in Oahu has removed a lot of
complexity from the equation, comments
Brant Wutzl, Director of Supply Chain
Management for HUSA's Central and West
Regions. "Now, we can supply the larger
islands directly with quantities determined by
our Hawaiian distribution partner, Paradise
Beverages."
The ability to ship directly to the outer
islands has also removed many of the
challenges involved in supplying fresh beer
to thirsty consumers in Hawaii, says Gregg
Ramos, HUSA's Senior Director Supply Chain
Management. "The more direct shipments
have ensured that we can deliver fresh beer
to consumers on all the islands."
An important driver in the development of
the supply chain has been the impressive
growth of Heineken® in Hawaii, where the
brand has seen an average year-on-year
growth rate of around 17 per cent over
the last decade. "Heineken® sells through
very rapidly in Hawaii, so we had to further
improve our delivery lead-times," says Greg.
"Yes, Hawaii is a real jewel in the crown of
our Dutch portfolio," says Edward Goh, Zone
Director Pacific Northwest at HUSA.
"With only 1.2 million people, Hawaii as
