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Reengineering IS/IT: Heineken

Reengineering IS/IT: Heineken. Goal: Support the ongoing transformation of the supply chain management systems Objectives: 1. develop an IT infrastructure to support the supply chain management (SCM); 2. ongoing transformation using a process-driven approach;

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Reengineering IS/IT: Heineken

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  1. Reengineering IS/IT: Heineken Goal: Support the ongoing transformation of the supply chain management systems Objectives: 1. develop an IT infrastructure to support the supply chain management (SCM); 2. ongoing transformation using a process-driven approach; 3. form customer-service partnerships; 4. moving to a 24-hour delivery service; 4. new transportation systems; and, 5. develop new information management systems

  2. Background of Heineken Netherlands • Served 100 exports countries • 60.4 million hectoliters of beer produced worldwide under the Heineken Group • More than 5400 employees for Heineken Netherlands • Supply chain management is considered as central to enterprise-wide transformation

  3. IT Infrastructure to Support the SCM • Aimed at improving: • the receipt of the raw materials that went into brewing process; • raw materials for packaging, distribution and delivery; and, • efficient management of response time from the wholesalers and retailers

  4. Ongoing Transformation of Heineken • A process-driven view is adopted to improve the response time requested by the customers; • This provided the management with opportunity to transform the existing SCM by creating customer-service partnerships; • The SCM transformation is regarded as a never-ending process.

  5. SCM for Customer-Service Partnerships • The delivery lead time or DLT can be referred to as the time from the placement of product order to the actual delivery; • The DLT was three days before the implementation of this new SCM; • Supermarket chains requested this DLT to be reduced to 24 hrs; • Management realised that the higher the DLT, the higher the dissatisfaction of the clients

  6. SCM for Customer-Service Partnerships • Heineken had embarked on “Comakership”-a pilot test to a new logistics improvement; • “Comakership” is then used to formulate a competitive DLT; • Introduction of SCM helped Heineken to: • lower lead time (accommodate the delivery time in 18 hrs); • decreased distribution costs; and, • less complexity in the distribution systems. • Resulted in a cost reduction of G1.5 million

  7. New Information Management Needs • Introduction of the customer-service partnerships, 24-hr DLT and new transport systems brought new IM requirements; • Comakership pilot testing also identified the need for new IM; • Heineken recognised the need for an improved understanding of the relationships between IM, ISs, and IT

  8. Relationships between IM, ISs & IT • IM at Heineken focused on supporting customers and creating new “bundles of goods and services”; • ISs focused on developing applications SW, managing data, and supporting the new business processes; • IT related primarily to data and text services, and the underlying operating systems, interfaces, HW and networks.

  9. New IM Phases • Phase I: Recognising the need for change • IS/IT benchmarking; • implementation of the new IS/IT plan • Phase II: Outsourcing to develop the new IS/IT infrastructure • Outsourcing from EDS (Electronic Data Systems); • development of new IT architecture; • changing over to standard packages and developing greater flexibility to serve business; • selection of standard software packages

  10. New IM Phases • Phase III: Leveraging information assets in the business by introducing: • executive information systems (EIS) for gathering the data from data warehouses of the different business systems in all areas; and, • better planning tools for faster and more flexible control of supply chain activities.

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