Supply Chain---Tingtao Beer

SUPPLY CHAIN CASE STUDY-

TSINGTAO BREWERY

Course Code: OMGT 1021

Course Name: Supply Chain Principles

Students:

Date of Submission: 13/10/2006

TABLE OF CONTENT

Executive Summary 4

1. Introduction 6

1.1 Investigation 6

1.2 Objectives 6

1.3 Assumptions 7

1.4 Scope 7

2. Current Situation 8

2.1 Tsingtao brewery-marketing and business strategy 8

2.2 Tsingtao brewery-supply chain policy and strategy 9

2.3Tsingtao brewery-supply chain management…………………………………………….11

3. IssuesIdentified 12

3.1 Distribution network 12

3.2 Information flow 13

3.3 Inventory level 14

4. Analyses 15

4.1 SWOT Analyses---the current situation of Tsingtao beer supply chain 15

4.1.1 Strengths: 15

4.1.2 Weaknesses: 15

4.1.3 Opportunities: 16

4.1.4 Threats: 16

4.2 GAP Analysis--- Tsingtao beer’ supply chain 17

5. Recommendation 20

5.1 Putting the retailer first 20

5.2 Looking across the fences 21

5.3 Shifting the gear in racing relationship 21

5.4 Some proposals for bridging the gap 22

5.5 Centralization, streamline distribution and logistics 22

5.6 IT as an enabler and support supply chain 22

6. Implementation 23

6.1 Break down the existing distribution networks and cut off the second tier 23

6.2 IT as an enabler to help create forecasting 24

6.3 Reduction inventory level 25

6.4 Schedules 26

7. Conclusion 27

References: 28

Executive Summary

Tsingtao Brewery is the most popular beer industry in China. How to improve the supply chain management in Tsingtao Group has become a necessary issue today. Tsingtao Brewery overall strategies focus on �keeping fresh’ and Just In Time delivery.

This report provides the background on Tsingtao Brewery and South Chain Division in China perspective. Through several researches with Tsingtao Brewery, this report identifies the current issues associated with supply chain management. These issues are further analyzed through a SWOT and GAP analysis. This highlights those areas within the current supply chain management system that need to be improved on.

The main areas identified within the supply chain system (at South China Division of Tsingtao) were distribution network, information flow and inventory level. This report therefore makes further recommendations on logistics specific strategies to address these issues. The recommended strategies include: retailer, relationship, IT and distribution center. It is anticipated that the recommended logistics strategies will improve Tsingtao supply chain performance and enhance its competitive advantage in the future.

1. Introduction

1.1 Investigation

Tsingtao Brewery is the largest brewer in China, involved in the manufacture and distribution of beer and related businesses. Founded in 1903 by German settlers, it claims about 16.2 % of domestic market share. Given the shelf size of this organization in China scale, the focus of this report is the South China Division located in Shenzhen which is