VIETNAM NATIONAL UNIVERSITY HCM

INTERNATIONAL UNIVERSITY

School of Industrial and Engineering Management

REPORT

Group 3:
Vũ Minh Đức – IELSIU18022
Lê Thanh Mai – IELSIU18077
Hoàng Minh Tuyền – IELSIU18168
Trần Thị Thanh Ngân – IELSIU18223
Nguyễn Thị Minh Trí – IELSIU18158
Nguyễn Thị Minh Ánh – IELSIU18180
Hà Xuân Trường – IELSIU18164

PRINCIPLES OF LOGISTICS & SUPPLY CHAIN MANAGEMENT
MARK
REPORT &PRESENTATION CRITERIA SHEET (100)

Vũ Minh Đức – IELSIU18022

Lê Thanh Mai – IELSIU18077
Hoàng Minh Tuyền – IELSIU18168
Trần Thị Thanh Ngân – IELSIU18223
Please print this sheet and attach it to the front of your written
paper and hand this to the instructor prior to the presentation Nguyễn Thị Minh Trí – IELSIU18158

Student name & ID Nguyễn Thị Minh Ánh – IELSIU18180

Hà Xuân Trường – IELSIU18164
GROUP NUMBER 3

CRITERIA 7 6 5 4 3

Marks awarded 5 4 3 2 1

Knowledge of Gives a clear Uses information well to Shows a Shows a Does not show
Issues of topic and concise illustrate knowledge of reasonably general any
explanation importance of the topic. sound awareness understanding of
Marks / 100 of the topic Supportive argument and awareness of importance of the
in detail as data. of importanc topic; eg;
well as importance e of topic; textbook
showing of the topic lacks repetition
additional and its explanatio
related relative n of topic
insight. operations. importanc
e

100-85 75-84 65-74 50-64 >50

Professional Exceptional A clear and appropriate A basic Some The paper is

Structure and clarity and structure. Language structure in structure, disorganised and
Writing logical fluent the paper. but is incoherent.
structure. Language unclear in Grammar and/or
Marks / 100 Grammar and spelling of
Fluent mainly several spelling contain
writing style a high order. fluent. places and frequent errors
appropriate Grammar lacks a
to document. and coherent

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 Grammar spelling developm
and spelling mainly ent and a
accurate. accurate. logical
manner.

100-85 75-84 65-74 50-64 >50

Professional Excellent Conveys insights and Is able to Conveys No clear spoken

Oral spoken meaning, engages the convey some message
Communicatio communicati audience at a high level. meaning issues but conveyed
n on and and engage with low
engagement the level of
Marks / 100
with the audience at meaning
audience. a and
satisfactor engageme
y level nt with the
audience.
Overrelian
ce on
notes.

100-85 75-84 65-74 50-64 >50

Any additional COMMENT

HEINEKEN – GROUP 3 3

 PREFACE
Beer is one of the oldest and most widely consumed alcoholic drinks in the world. It is also the
third most popular drink overall after water and tea. The brewing industry is a global business,
consisting of several dominant multinational companies and many thousands of smaller
producers ranging from brewpubs to regional breweries. Beer forms part of the culture of many
nations and is associated with social traditions such as beer festivals, as well as a rich pub culture
involving activities like pub crawling and pub games. Today, the Vietnamese beer industry is
quite large and developed both technologically and commercially. The beer has an integral place
in Vietnamese culture. Although there are dozens of beer brands on the market today, more than
90% of the market share belongs to big players like Sabeco, Habeco, Carlberg and Heineken.
Since its establishment in 1873, the Heineken brand has always been regarded as synonymous
with quality. Heineken has been presented in Vietnam market for over 25 years, with its image
and top quality that have left a great success in the hearts of the Vietnamese people. Vietnam is
the largest market in the world for Heineken. “We aim for the No. 1 position, not only in profit
but also in volume,” Heineken Vietnam managing director Leo Evers told Reuters in an
interview. To achieve that success, it is impossible not to mention the extremely important role
of Supply Chain. Heineken's success is admirable not only to businesses in the industry but also
to many Supply Chain experts. Therefore, through this report, we want to bring to everyone the
overview of Heineken's business strategy and also its supply chain.

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CONTENTS
I. INTRODUCTION .............................................................................................................................. 6
1. ABOUT HEINEKEN .................................................................................................................... 6
2. HEINEKEN VIETNAM ............................................................................................................... 7
2.1. General Information ............................................................................................................. 7
2.2. Products ................................................................................................................................. 8
2.3. Market & competitors .......................................................................................................... 9
2.4. Strategy ................................................................................................................................ 10
2.5. Achievements ...................................................................................................................... 10
2.6. Important checkpoint of Heineken VN ............................................................................. 11
2.7. Supply chain ........................................................................................................................ 12
II. OPERATION ............................................................................................................................... 14
1. SUPPLIER ................................................................................................................................... 14
2. MANUFACTURING ....................................................................................................................... 19
2.1. Brewery Standard .............................................................................................................. 19
2.2. Brewing process .................................................................................................................. 20
2.3. Packaging process ............................................................................................................... 22
3. WAREHOUSE ............................................................................................................................ 24
4. DISTRIBUTION & DELIVERY .............................................................................................. 25
4.1. Distribution system ............................................................................................................ 25
4.2. Heineken’s position in Vietnam market .......................................................................... 26
4.3. About wholesalers and logistics partners ........................................................................ 27
5. HEINEKEN’S CUSTOMER SERVICES ................................................................................. 28
III. PROBLEMS AND SOLUTIONS ............................................................................................... 30
IV. REFERENCES ............................................................................................................................ 31

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I. INTRODUCTION

1. ABOUT HEINEKEN
.As of 2017, Heineken owns over 165
breweries in more than 70 countries. It
produces 250 international, regional, local
and specialty beers and ciders and employs
approximately 73,000 people.
Heineken Lager beer (Dutch: Heineken
Pilsener), or simply Heineken is a pale lager
beer (pale) with 5% alcohol by volume
produced by the company Heineken Dutch
beer NV. Heineken is famous for its
characteristic green bottles, red stars, smiling
‘e’… like a greeting from an old friend

On February 15, 1864, Gerard Adriaan Heineken

(1841-1893) persuaded his wealthy mother to
buy De Hooiberg (The Haystack) brewery in
Amsterdam, a popular brand with working class,
was founded in 1592. In 1873, after hiring Dr.
Elion (a student of Louis Pasteur) to develop a
yeast for the Bavarian bottom fermentation, the
company HBM (Heineken's Bierbrouwerij
Maatschappij) was was established, and the first
Heineken brand beer was produced.
The key to Heineken's success lies in its pure,
natural ingredients: grated barley, water, hops
and a small but extremely important amount of
yeast A. Heineken's special A yeast helps balance Heineken Company establishment certificate
the rich flavors and delicate aromas that have
made a difference for every Heineken glass since the 19th century.

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Significant milestones in Heineken's development

Year Events
1864 Gerard Adriaan Heineken acquired Haystack brewery.
1873 Bierbrouwerij Maatschappij N.V (HBM), which owns the Heineken brand, was
established.

1889 Heineken received an honorary diploma "Diplome de Grand Prix" at the Paris
International Fair.
1933 After 13 years of being banned, the Heineken brand has successfully set its foot
on the promising American lands.
1939 Heineken was on the stock exchange in the Netherlands.
1968 Heineken acquired Amstel, a major competitor in the Netherlands.
1968 The Dutch television audience saw something that had never been seen before:
a beer advertisement.
1975 A new brewery went into production in Zoeterwoude, the Netherlands,
becoming the largest brewery in Europe at that time.
1991 The first brewery in Amsterdam was formerly transformed into a museum of
Heineken and changed its name to Heineken Experience
2003 Heineken acquired the Brau Union beer brand in Austria, Romania, Hungary,
Czech Republic and Poland.
2009 Heineken founded the Heineken Africa Foundation to support and improve the
health of people in Africa and the Sahara region.
2012 Heineken had full control of Asia Pacific Brewery (APB), which owns well-
known brands such as Tiger and Larue in Asia.

2. HEINEKEN VIETNAM

2.1. General Information

Headquarters 18th Floor, Vietcombank Building - No. 5 Me Linh Square -

District 1 - TP. Ho Chi Minh
Tel 028-38222755
Website http://heineken-vietnam.com.vn
Established year 01/01/1991

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HEINEKEN Vietnam is a member of the HEINEKEN Group, a brewery presence in many
countries around the world. Originating in the Netherlands, HEINEKEN is a family-owned
company with more than 150 years of history, producing and distributing over 300 brands of
beer and cider in over 190 countries.
Founded in 1991, HEINEKEN Vietnam now operating 6 breweries in Hanoi, Da Nang, Quang
Nam, Ho Chi Minh City, Vung Tau and Tien Giang and 9 commercial offices throughout
Vietnam.
From a humble beginning with just 20 employees, HEINEKEN Vietnam today has become the
second largest brewer in Vietnam with over 3,500 employees. Every year, HEINEKEN Vietnam
contributes significantly to the Vietnamese economy, accounting for about 0.9% of the national
GDP.

2.2. Products

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 2.3. Market & competitors
Heineken VN has many opponents in Vietnam marketplace with different market share:
+ Sabeco (40%)
+ Heineken VN (25%)
+ Habeco (18%)
+ Hue Brewery (7%)
+ Others (10%)
Despite having an overwhelming market share, nearly double that of the 2nd largest enterprise -
Heineken Vietnam - but the paradox is that Heineken always has superior profits compared to
Sabeco. Not only that, with a revenue growth of up to 33% in 2016, Sabeco's revenue also began
to be surpassed by the Heineken group.

Income of some beer groups

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2.4. Strategy
To reach this impressed number is not an easy task, Heineken VN could do that because it has
developed a proper strategy focusing on human values and environment which leads to the
increase on productivity and reduction of energy cost.
1. Build culture of care.
2. Drive E2E World Class Brewery in Performance & achieve TPM gold in 2020.
3. Engage & develop people via leading change, SFE, WFP, Develop talents for succession
planning.
4. Deliver volume required to satisfy customer demand in 2019 – 2021
5. Lead environmental sustainability culture via identifying & implementing opportunities
for driving sustainability agenda.
6. Digital technology application.

2.5. Achievements

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 ABOUT PROSPERITY

ABOUT PEOPLE

2.6. Important checkpoint of Heineken VN

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• Contract signing ceremony

1991 • Establish Vietnam Brewery Co., Ltd. (VBL)

• Opening Ceremony of Ho Chi Minh City Beer Factory

1993

• Produced the first batch of Tiger beer

1993

• Produced the first batch of Heineken beer

1994

• Established HEINEKEN Brewery in Hanoi

1996

• 25th anniversary of establishment and renamed to HEINEKEN Vietnam

2016 Brewery LLC.

• Honored as Vietnam's Most Sustainable Manufacturing Enterprise

2018

2.7. Supply chain

In order to manage such huge system, Heineken must have had a very good supply chain
operation. In this report, we just concentrate on that of Brewery Heineken District 12, where we
had chance to visit.

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 Main Holding Brewery in
Operating
Ingredients Company District 12

Consumer Retailers Distribution

General Supply Chain & Logistics of Heineken District 12

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II. OPERATION
1. SUPPLIER

Model of inbound of HEINEKEN

In order to keep the same taste of every product, Heineken creates a strict process from material

purchasing to transport. Typically, each factory in Vietnam must follow “The Supplier Code

Procedures” with 4 basic steps. Heineken also uses the MCDM, which stands for Multi-Criteria

Decision Making, and Ecovadis Platform to manage the information flow to choose the best

suppliers from Europe and Australia. These systems help Heineken keep the material flow from

being late. Heineken is aiming for a more responsible local business community as one hundred

percent of their key materials such as rice, corrugated carton, aluminum cans and glass bottles

must follow stringent HEINEKEN Standards and are sourced from local vendors and

manufacturers. One hundred percent of new and existing materials and/or service suppliers must

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abide by their Code. Heineken Vietnam only uses the material from suppliers which are already

assigned by Global Heineken to guarantee the safety and synchronization. These material will be

stored in the special area to avoid moisture, smell, and direct light. There are four main ingredients

to brew beer, which is Water, Malt, Hops, and Yeast.

Efficient use of resources by practicing the circular economy model

Water: Accounting for 95% of beer, water is the key ingredient. Therefore, the usage of clean,

safe and pure water is set to the highest priority. 77% of water is taken from the ground, others

23% is from the surface. The purify, soften and boil processes are handled in a standard closed-

procedure which is researched and developed by experts from Global Heineken. In recent years,

Vietnam has to suffer many disasters such as drought, water erosion, etc. It is necessary to protect

and use this common resource in a responsible way. According to Heineken annually report, they

can now reuse wastewater to water trees and adopt fish.

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 Malt: (Imported from Belgium, New Zealand, and Australia)

Among all malts, barley malt which contains amylase, a

digestive enzyme that breaks down starches to convert it into

sugars is widely used. Malt is made from cereal grains by

soaking them in water, allowing them to germinate and then

drying the germinated seeds in kilns. Malted grains create

enzymes that convert the starch in the seeds into fermentable

sugar.

Hops: (Imported from America) Hops has been used to create

the bitter taste in beer since the 17th century. Hops provides its

unique bitter to balance the sweetness of malt sugar, brings out

the flavor of floral to citrus or herbal. Hops’ antibiotic effects

make yeast's activity better against unwanted microorganisms.

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 Yeast: The ingredient that makes Heineken stand out among

other brewery coming from their special yeast can be known as

A-Yeast. Yeast is The microorganisms in their own yeast help

ferment the sugar. Specific types of yeast are chosen to produce

different types of beer, but there are two main varieties:

Saccharomyces cerevisiae and Saccharomyces uvarum

Packaging: Heineken proud about their

own the most modern packaging chain in

the world using safety and friendly

designed material for consumers. They

have designed the route-to-market process

where nearly 100% of bottles are returned

for reuse and after a certain period of time,

will be sent to a glass factory to be

recycled. Aluminum cans are also a

sustainable solution for beverage packaging as they are highly recyclable and by using cans,

Heineken is now able to transport more volume with less weight in the truck which reduces the

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energy consumption for transporting beer. In 2018, they successfully reduced the thickness of the

can by 9%; from 0.270mm to 0.245mm and opted for light-end aluminum for the can lid which

saves 0.3g per piece without compromising the packaging quality. The estimated saving is over

4,000 tons of aluminum a year.

Worker remuneration program:

- Many benefits, modern and dynamic working environment, satisfactory remuneration policies
- Implementing many policies to help the poor, the elderly and children in the locality.
- Investing in seed sources for farmers to get the best quality.
- Hiring agricultural engineers to guide barley farmers effectively.

Heineken workers

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 2. MANUFACTURING
2.1. Brewery Standard
Heineken’s factories have quickly applied advanced quality management systems such as ISO

9001, HACCP, especially the combination of 5S Model (Europe) and TQM (Total Quality

Management Model (Japan) to ensure actual hygiene and safe products for consumers. All

brewery processes and packaging processes are carried out in factories following the

international standards set by Heineken, ensuring the quality of beer bottles before distributing to

the market. This is an automated production process at every stage: from checking input

materials, brewing process to fermentation, packaging and comprehensive quality checking

before delivering products to market. A unique beer flavor and the success of Heineken today

come from the standards of the ingredients before the start of the production process which is an

important role. The table below shows the standards of the components:

Name Required standards Name Required standards

Malt - Carbs: 58% Houblon Flower - Only use female flowers in

brewing.
- Inverted sugar: 4%
- Ingredient:
- Mineral: 2.5%
+ Bitter: 19%
- Protid: 10%
+ Cellulose: 13%
- Lipid: 2.5%
+ Ash: 8%
- Pentoza: 6%
+ Protein: 5-10%
- Saccharose: 5%
+ Tannin: 20%
- Cellulose: 8%
+ Essential oil: 1.5%

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 + Minerals: 4%
+ Soluble substance does
not contain N2: 28%
- Preserved at a temperature of
0.5 - 200oC.

Water - Water accounts for 80- A - YEAST - The mortality rate is less than
89% of total beer. 2%, shoots rate greater than 10%.
- pH: 6.5 - 7.2 - Mushrooms put into sugar
solution to ferment must be 10-
- Total hardness: <= 5oF 20 million cells/ml of seed fluid.
Total alkalinity TAC: <= - Yeast must be able to convert
4oF double sugar, a simple sugar,
- Turbidity: <= 20NP peptides, amino acids, CO2
more than drinking water solution, ethyl alcohol, and heat.
- Yeast must be purebred.

Table 1: Standards of ingredients

2.2. Brewing process

After importing the ingredients, the factory started the brewing process. The diagram of
the plant's operation is shown in the picture below:

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Model of brewery process

● Step 1: Different types of malt are crushed together to break up the grain kernels in
order to extract fermentable sugars to produce a milled product called grist.
● Step 2: The grist is then transferred into a mash tun where it is mixed with heated
water in a process called mash conversion. The conversion process uses natural
enzymes in the malt to break the malt’s starch down into sugars.
● Step 3: Filtering the residue 3 times at a temperature of 76 degrees C, then moving
to the mash tun.
● Step 4: The mash is then pumped into the lauter tun, where a sweet liquid (known
as wort) is separated from the grain husks.
● Step 5: The wort is then collected in a vessel called a kettle, where it is brought to
a controlled boil before the hops are added. At this process, wort is boiled with
Boulon flower at a temperature of 100 degrees C within 1 hour. The bitter

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 substances, aromatic oils, polyphenols, and flower components are dissolved into
the wort to make beer bitter taste, typical aroma of flowers and the ability to hold
the foam of beer.

● Step 6: Wort will be pumped into the whirlpool tank. In this tank, the remaining
residues will be settled down, the sugar solution will be pumped through the Cooler
machine.
● Step 7: The cooler helps to lower the nutritional temperature for A-yeast to grow
● Step 8: The fermentation starts with the addition of A-yeast during the filling of the
vessel. Yeast converts the sugary wort into beer by producing alcohol, a wide range
of flavors, and carbon dioxide (used later in the process to give the beer its sparkle).
● Step 9: Separating the solids, diffusing in beer and filtering out microorganisms to
make beer iridescent when light shines through. This is a closed process.
● Step 10: Packaging

The secret to create the unique smell and taste of Heineken is in the method of brewing
horizontal beer tanks instead of vertical tanks. Applying this method, the ingredients will increase
the interacted surface with the beer, while creating the perfect pressure for Heineken A-Yeast yeast
to maximize its use. A-yeast is an important ingredient to make Heineken become special.

2.3. Packaging process

- The whole process is fully automated, with input is raw materials and empty bottles,
the output is products that can be sold directly. All systems are conveyor systems.
- The transfer line must have some people stand by the machine: 1 transfer chain is
about 5 people => dealing with problems happened during the processes.
- The continuous production process and automation help Heineken create large beer
output and meet high standards.
- Productivity: 97 000 cans / hour and 52 000 bottles / hour
- The process complies with the international standards set by Heineken, ensuring
every Heineken beer bottle to consumers is strictly controlled from the first to the
last stage.

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 Packaging bottles process diagram

Packaging cans process diagram

The difference between two processes is that bottle packaging process uses the new bottles
or reuses bottles while can packaging process uses new cans only.

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 The entire system uses modern machinery and equipment automatically with the most
advanced technology such as conveyor, cooler machine, filling machine, etc.. Heineken can now
produces more products and be able to achieve high standards. Heineken has automated and strictly
controlled stages, the quality management requirements are met, from the production of
components to final products to customers.

Besides the production of high-quality beer, the treatment of wastewater is very important.
Currently, Heineken is proud to be a factory with wastewater treatment systems of international
standards. This system is responsible for treating all industrial and domestic wastewater by
anaerobic and aerobic treatment methods, ensuring that all parameters meet the standards set by
the Ministry of Industry and Environment regulations. Heineken is investing more to upgrade the
wastewater treatment system to Class A to ensure clean and safe water returns to nature.

3. WAREHOUSE
In the warehouse, every product is stored in a warehouse located insight the Heineken company.
This system brings many benefits such as: transporting easily, reducing carrying costs,…
Moreover, storage time depends on the market’s demand. Currently, automated technologies have
not been used in the warehouse. All operations in the warehouse is managed by human and forklifts
for delivering whose the productivity is 1680 bottles or 2880 cans in one delivery.

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4. DISTRIBUTION & DELIVERY
4.1. Distribution system
According to Viet Capital Securities Company (VCSC) report, Heineken Vietnam
Brewery runs a superior distribution system:

Description of Heineken Vietnam Brewery's distribution

Heineken Vietnam Brewery effectively controls the transaction prices between its 250
distributors and retailers (with distributors earning a margin of around 3%-4%. This enables
Heineken to avoid a situation in which its distributors compete against each other on price.) At
the same time, Heineken Vietnam Brewery’s system is well designed to make sure its
distributors will concentrate on their designated areas, instead of trying to invade each other’s.
Heineken Brewery Vietnam’s volume per distributor increased 2.3 times between 2009 and
2015. During the same period, Heineken Brewery Vietnam witnessed a 23 ppt improvement in
the direct-to-delivery rate (direct from distributors to retailers without going through sub-
distributors) of its distributors, which helps save distribution costs.
Almost ingredients make beer import from foreign. Malt is imported from Belgium,
Australia, and New Zealand. Hobble is imported from America. Both malt and hobble are
transported by container ship. Yeast is provided by Heineken’s heading office by airplane.
Heineken Vietnam has a exported product is Larue Export which is mainly produced at Danang.

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 In Vietnam market, Heineken Brewery claims the second biggest overall market share
thanks to its dominance the premium segment with a significant presence in the South and to a
smaller extent the Central region.

4.2. Heineken’s position in Vietnam market

Volume market share structure in

Vietnam's beer industry

10% Sabeco
7% Heineken
40%
18% Habeco

Hue Brewery
25% Others

Summary of market focus and positioning of key players (Source: VCSC's compilation)

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 Heineken is outperforming in market share movement: Heineken Vietnam Brewery
recorded revenue CAGR of 14% between 2012-2015, according to the company’s disclosure.
Heineken Vietnam Brewery is Heineken NV’s subsidiary responsible for the South and Central
markets of Vietnam, while Heineken NV’s other subsidiary, APB Hanoi, is in charge of the
North. Heineken Vietnam Brewery’s volume CAGR during 2012-2015 should be above 14%,
given that the lower-priced Tiger brand was the primary driver with 36% volume CAGR, while
the more premium brand Heineken saw a volume drop of nearly 40% in 2015 compared to 2011,
according to Heineken NV estimates. In half of 2016, Heineken NV again reported double-digit
volume growth and market share gain in Vietnam driven by Tiger.
As mentioned above, Heineken NV occupies 67% of the premium segment in Vietnam,
with 40% held by the Tiger brand while the Heineken brand is responsible for 27%. Its top rival
in this segment, Sabeco Saigon Special, is estimated to have a 28% market share.

4.3. About wholesalers and logistics partners

Heineken Trading is in charge of distributing beer to other Heineken system in Vietnam.
Heineken District 12 Brewery choose Binh Vinh and O to 2 logistics service providers to carry
out the delivery of shipments . In Vietnam, there are over 250 wholesalers and retailers distribute
Heineken’s product to customers.
The operational process starts with distributors placing orders. After order confirmation, sales
department transfers the information to logistics department, usually at around 16.00 so that
transportation staffs can book trucks for the next day because а working day in Vietnam ends аt
17.00. The procedure resumes the next dаy when trаnsportаtion employee allocates shipments to
trucks аnd to distributors аnd issue delivery notes. Then wаrehouse employees pick up the
products аnd load into trucks. The final steps are delivery to distributors аnd follow-up. The
whole outbound delivery procedure is demonstrаted in the following figure.

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 Sales
department Transportation
Distributors Order
transferring staff allocating
placing order confirmation
information shipments
to Logistics
department

Picking up Issuing
Follow-up Delivery and loading delivery notes
products

Outbound delivery process at Heineken

5. HEINEKEN’S CUSTOMER SERVICES

Due to Heineken’s has international presence and expanded lines, the brewer had
multifaceted goals, one of which is its latest “Drinkies” project in the South East Asia
region. The idea of Drinkies is to bring the cold drinks right to the customer’s doorstep within a
60-minute-delivery. This model is Heineken’s first step in its “Drink responsibly” movement, by
providing a fast and reliable delivery solution so customers don’t have to go out to pick up their
drinks, the company could reduce the traffic accident rate caused by drinking and driving. Also
working on the project are Vaimo – a Magento 2 Global Elite, Valtech – Heineken’s digital
partner while Heineken Global itself does the supervising work.

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 "Drinkies" project's operation lines
It is noticeable that the traffic condition in Vietnam is a disadvantage to go ahead, especially in
Ho Chi Minh City . Therefore, Heineken has partnered with Satrafoods HCMC to gain the access
to its storehouses and outlets that cover all over the city. In the near future, the company is
looking to cooperate with other major consumer good distributors Lotte and Vinmart+. With this
forward-thinking move, the company can keep its business flowing without the need to own a
single facility.
To handle the logistics need for the company, Heineken and partner integrate the platform with
major delivery service providers in Vietnam, for the time being, Ahamove and Grab. For secure
transactions, the company integrate popular local payment gateways to their Magento 2 site –
Napas and Momo Pay. It is very beneficial for customers to get the drinks stay cold and
convenient payment.

HEINEKEN – GROUP 3 29

Heineken choose Ho Chi Minh is the first city to process the project “Drinkies”. No longer, the

company will develop this service to Hanoi in Vietnam and later to entire South East Asia region.

III. PROBLEMS AND SOLUTIONS

PROBLEMS SOLUTIONS
It is noteworthy thаt the number
of orders notified to logistics Trаnsportаtion network is аnother vitаl аspect. The
depаrtment the previous dаy will compаny hаs аdopted direct shipment network which
not stаy the sаme becаuse other meаns аll shipments аre delivered directly from the plаnt
orders will be plаced by to different distributors without аny intermediаry
distributors the next dаy.
Therefore, it is usuаlly the cаse - The dаtа regаrding delivery time is mаnuаlly
thаt there will be а lаck of trucks recorded in аn excel file. The file is simple аnd leаn,
the next dаy or some shipments contаining only necessаry informаtion. Moreover, using
will be delаyed. (Heineken excel files to calculate “expected delivery time”, and “On-
Hаnoi Brewery’s Trаnsportаtion time delivery assessment” easily.
1 Stаff 18 June 2019.)
- At the high demand time like Tet Holiday,
searching for back up logistics services companies are
very necessary, while the current compаny could not
deliver service аt the sаme level аs usuаl.

- Using maximum weight the truck can carry to save

cost and improve efficiency.

- Replacing by big truck to cover the largest

proportion of delivery and Heineken’s shipment.

Currently, Heineken’s
Warehouses in Vietnam use In the world, some warehouses of Heineken have
100% human resources in already applied advanced automation equipments such as:
2 automated guided vehicle and robot, conveyor, shuttle car,
operation and management. In
fact, Heineken is a famous brand robotic warehouse,.. Especially, using IoT in warehouse
management can track end-to-end inventory, vision

HEINEKEN – GROUP 3 30

 all over the world and produce picking, automated tasking, data analytics. These devices
million tons of beer everyday help us organize and control warehouse easily.
but traditional management takes Furthermore, there are some benefits in using advanced
too much to operate and record techniques: utilize space and labour resources, increase
data. productivities, reduce fatigue and improve workplace
Some disadvantages or risks can safety.
be mentioned such as
occupational accidents, low
productivity because of limited
human capacity, easy to make
errors, mistakes in the process of
collect inputs or check goods.
Warehouses struggles with
several costly issues that can
hold them back from achieving
their true potential. Therefore,
efficiency, accuracy, and
optimization are the goals that
not only Heineken but other
companies are aiming at in both
warehouse operation and
manufacturing process.

IV. REFERENCES

Heineken Vietnаm. 2019. Retrieved from

https://www.theheinekencompany.com/About-Us

Th.S Vũ Thị Như Quỳnh. Report: Brewing process in Heineken. Retrieved from
https://text.123doc.org/document/5181720-quy-trinh-san-xuat-bia-heineken.htm

HEINEKEN – GROUP 3 31

M-A-T channel (Apr 8, 2018). Heineken Beer - Filling and Bottling Process. Retrieved from
https://www.youtube.com/watch?v=aFwMnlop7XU

MHD Supply Chain news. (February 17, 2009). Heineken automates logistics. Retrieved from
http://mhdsupplychain.com.au/2009/02/17/heineken-automates-logistics-3/

Science Vietnam (Jun 27, 2018). Heineken's unique brewing process. Retrieved from
https://www.youtube.com/watch?v=ydZekrAxgwk

Heineken’s history. Retrieved from

https://www.heineken.com/vn/we-are-heineken/our-beer

Heineken Vietnam introduction. Retrieved from

http://heineken-vietnam.com.vn/gioi-thieu/

Heineken information. Retrieved from

https://toptenvietnam.vn/Thong-tin-doanh-nghiep/CONG-TY-TNHH-NHA-MAY-BIA-
HEINEKEN-VIET-NAM-Chart--10-2018.html

Heineken Marketplace. Retrieved from

https://m.bizlive.vn/kinh-doanh/vi-sao-heineken-moi-thuc-su-la-cong-ty-thong-tri-thi-truong-bia-
viet-3423656.html

HEINEKEN – GROUP 3 32

 EVALUATION TABLE

Name ID Task Evaluation

Vũ Minh Đức IELSIU18022 Introduction + last words + 95%
slides + edit report
Nguyễn Thị Minh Trí IELSIU18158 Distribution and delivery + 95%
customer service + problem &
solution 1
Lê Thanh Mai IELSIU18077 Distribution and delivery + 95%
customer service + problem &
solution 1 + edit report
Hà Xuân Trường IELSIU18164 Manufacturing + Warehouse + 95%
problem & solution 2
Nguyễn Thị Minh Ánh IELSIU18180 Manufacturing + Warehouse + 95%
problem & solution 2
Hoàng Minh Tuyền IELSIU18168 Supplier + Preface 95%
Trần Thị Thanh Ngân IELSIU18223 Supplier + Preface 95%

 Last words
Thanks for reading to the end of our report – you must be a person who concerns about Heineken
Logistics and Supply Chain and a beer lover. Therefore, as a gift, we give you TOP 10 TIPS FOR
RESPONSIBLE DRINKING
• Eat: do not drink when hungry. Eat something - preferably carbohydrates - before you start
drinking and eating fast food between drinks. Eating slows down the absorption of alcohol
and gives you more energy to enjoy yourself.
• Drink water: replace drinks with water. This helps you maintain the amount of water in
your body and slow down the rate of drinking. And drink up a glass of water before going
to bed.
• Know your limits: daily guidelines are 3-4 units for men and 2-3 units for women. Units
are not always equal to a cup - usually must be more.
• Drink less: choose a smaller bottle or glass.
• Avoid emptying your glass: avoid emptying your glass so you can control the amount of
alcohol you drink.
• Create distance: drinking soda between drinks can help control the pace at night.
• Be careful with drinking in turn: stay in control (and save money) by choosing to take fewer
drinks or skip a drink.
• Consider your gender: if you are a woman, be aware that alcohol affects you more than
men because women's bodies contain less water.
• Choose a driver: before you leave home or make sure you have cash to take a taxi home.
• Take a break: give the liver the opportunity to rest and recover. And always in the best
health condition.

- END -