Essay PreviewMore ↓
The burning issue
Today, beverage industry has very high competition in global market. Marketing and brand position may be the first thing which a company probably thinks that they are the most important but the fact is supply chain management (SCM) can strongly indicate the company successful as well. Effective SCM is the most favorable key in the market strategy because SCM drives every activity of a firm to the end customer. Without effective SCM, company will probably be eliminated, Bommer and O’Neil (2001, pp11-12). In the last decade, Enterprise resource planning (ERP) deserves as a key of supply chain achievement and it is the reason that many beverage manufacturers try to replace their old style supply chain management with a brand new ERP system to outperform their competitors. The report will mainly discuss about case study of Red bull China and several beverage manufacturers.
A commercial drink such as beer, soft drink, energy drink or juice is usually contained in a can or bottle, it can be a small or large packaging depends on the market approach. A beverage manufacturer normally does not sell its product directly to the end customer but prefer to distribute product through retailers. As a result, retailer satisfaction is considered to the most important of beverage industry. In recent years, beverage industry is been under pressure from retailer to reduce price and also from new born beverage firms (Bommer and O’Neil, 2001, p18). Nevertheless, because of the high competition, manufacturers are not able to reduce Marketing cost. Therefore, the answer seems to be efficiency of SCM to satisfy retailer and customer, manufacturer must improve its SCM process. Several concepts are involved in SCM improvement in recent decades such as “lean production” is for reducing waste in manufactory and “just-in-time” delivery is to satisfy their retailer. However, no matter what concept that company desires, it need to be conducted by “IT”, or it can rephrase as business process re-engineering or ERP. An ERP system mission itself is to integrate and analyze data from various sections such as finance, logistics, inventory, sales, et cetera in an organization (sometimes between organizations). According to Al-Mashari, there are various resources to prepare for implementing ERP system; infrastructure resources planning, local area network, servers, terminal PCs, trainings, human resource planning and education about ERP (2002, pp166-167). As a result, it can be seen that most tasks are about information technology and human resource approach.
How to Cite this Page
"The Re-Engineering Project In Beverage Industry." 123HelpMe.com. 19 Nov 2019
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- Careers in Lodging and Food and Beverage Management If you are interested in a management career in hospitality industry it is good to research the management position that you may be interested in. Find out what the different positions are is a good way to start your research. The two different industries within the hospitality industry are the Hotel and Lodging industry and the Restaurant industry. The different top management position in the Hotel and Lodging are: General Manager, Director of Human Resources, Director of Food and beverage, Director of Rooms Division, Director of Sales and Marketing, Director of Engineering, Director of Accounting.... [tags: human resource, food and beverage industry]
1380 words (3.9 pages)
- A recent trend has emerged in the beverage industry that pinpoints a change in attitude and behavior in consumers. Want to find out what this new trend is. Next time you are at a grocery store, walk down the wine aisle and look for something out of the ordinary. Between all of the wine bottles something different will pop out: wine cans. It now seems that beer is not the only alcoholic beverage sold in cans. Within the past year the creation and consumption of canned wine have greatly increased.... [tags: Wine, Fermentation, Alcoholic beverage]
752 words (2.1 pages)
- Key Selection Criteria 1. Completion of an engineering, construction or project management degree; or an equivalent combination of relevant experience and/or education/training. I have a Diploma in Project Management and a Diploma in Business Management. I have attached copies of the diplomas for validation. Combined with this, I have wide-ranging experience in the delivery of projects within a local government framework. I have been the lead project manager on several projects in excess of $1 M, the largest project has been Shailer Pioneer Park, with a budget value of $2.3 M.... [tags: Project management, Management, Construction]
2167 words (6.2 pages)
- Ever wish chocolate was healthy and could have the same nutrients and vitamins as fruit and vegetables. Food, one of three necessities of life, affects every living organism on Earth. Although some foods are disliked because of taste or health issues, recent discovery will open up new prosperities and growth in agriculture. Genetic engineering has the capability to make foods taste better, increase nutrient value, and even engineer plants to produce aids for deadly health issues. Every day the progress, understanding, and development of genetic engineering is digging deeper and with this knowledge virtually anything is possible.... [tags: Genetic Engineering ]
1806 words (5.2 pages)
- Trends and Conditions Paper Introduction When starting a small business, in the food and beverage industry, there are always several trends and conditions that will affect your business, including consumer choice. Consumers want to be able to chose their personal preferences, which have been focused on natural culinary ingredients, that are sourced locally, and that possess natural and sustainable factors; becoming a healthier lifestyle, for most. Kudler Fine Foods provides consumers with specialty food, beverages, cuisines, and culinary themes that will have an influence on the trends for 2015, (Food Trends, 2015).... [tags: Food, Food industry, Food security, Famine]
1268 words (3.6 pages)
- At the beginning of the semester, I was quite undecided when asked which engineering major I was going to select. I had some direction in that I was not going to study anything with chemistry or computer in the title, however, I was still choosing from a list of majors including biomedical, mechanical, civil, and systems engineering, and did not have a clear cut image as to what I wanted to do with my life. Fast forward- thus far I still do not have a precise direction in life relating to my career, but do not fret, I end up figuring it out, to an extent.... [tags: Engineering, Mechanical engineering, Design]
1441 words (4.1 pages)
- Over the course of my professional life, I have become increasingly involved in project management roles. Doing so has made me aware of the many varied challenges that can face projects and the project managers who are charged with bringing them through to completion. The success or failure of projects, in whatever economic, political or social field, rests not just on the quality of the project’s goals, but also on the abilities of those involved in the project – and above all those who are managing it – to bring it to successful completion.... [tags: Project management, Management, Construction]
868 words (2.5 pages)
- The Beverage Industry is a very mature industry and includes companies that market nonalcoholic beverages and alcoholic items. There is room for growth opportunities but there are very few compared to existing businesses in the sector. Since the growth mainly comes from those already in this industry, many of the companies seek to diversify their offerings to continue to compete. One of the main ways to diversify their offerings is too seek out arrangements or acquisitions that expand their geographic reach, acquire new products, and expand their operations.... [tags: PepsiCo, Coca-Cola, The Coca-Cola Company]
733 words (2.1 pages)
- The process involved for this project deals with only internal customers within the SBU. To initiate this process, information must be submitted to a project manager (PM) to start looking at a specific project to determine the scope of work, what products are required, and how they want to proceed on the project. This would include determining if the project would need to go through the project service department (PS) or if they could quote the project themselves. Once it has been determined that the project will go to project service, the PM will then input all pertinent information in to our CRM system (Microsoft Dynamics) and they will also fill out a Project Service Request (PSR), which... [tags: Project management, Engineering, Management]
734 words (2.1 pages)
- Monster Beverage Corporation The Hansen Beverage company (recently changing their name to Monster Beverage Corporation on January 5th of 2012), was a family owned and operated company in the 1930’s, selling freshly squeezed juices to local film studios. In the 1970’s, one of the Hansen brothers decided to transition their beverage business into marketing ‘natural sodas’. This was the upturn of the company that led them to where they are today. Today, Monster Beverage Corp. has transformed into the largest energy drink company in Canada with sales of more than $ 2.1 billion in 2012.... [tags: Hansen Beverage, Monster Beverage]
1414 words (4 pages)
There are several aims in beverage industry that make manufacturers try to improve their supply chain system which are
• Reduce waste from overproduction
• Reduce transportation waste
• Reduce excess inventory
• Just-in-time delivery
The key to achieve those aims is “real-time information”. In distribution, real-time information is a very important factor for SCM because it involves many things such as sale forecasting and inventory organization, without real-time information, a manufacturer is not able to predict sale volumes or tracking and it may lead to inventory overages or unpleasant delivery time problem. Before ERP system was built, to have real-time information was almost impossible in distribution. A variety of software and application was a common problem of large size manufacturers because each department has its own application and process independence from others. If it is difficult to understand, it can be compared with a song. Imagine that different musical bands try to play the same song in the same time. At the point, it means when information are gathered, staffs has to collect data manually, sometimes it causes days or weeks to finish a task and sometimes it does not mean the information is reliable. After manufacturers realized their weaknesses, the idea of replacing its old supply chain systems with a new ERP system was started. Basically, company should find the weaknesses of its current systems then solve the problem by replacing the new customized ERP model. However, business process re-engineering is not easy like its concept; implementing re-engineering by using high and complicated information technology is quite challenge and risk for a company which has no experience in advance information technology. According to Chan and Land, “by some estimates, 70 percent of re-engineering projects fail for one reason or another” (1999, p311). Moreover, Implementing ERP system is a dedicated project because it unavoidably involves every position in organization; from low level employees to company CEOs. However, it seems to be difficult for beverage manufacturers to implement its own ERP system, therefore, most firms prefer to hire outsourcing to be their consulting and purchase an existing ERP system in the market. An example of ERP system is SAP. It is an ERP system which is originated in Germany. SAP is widely recognized in global business because of data interchange ability. Not only has a benefit from data interchange, SAP also has other advantages as well. It can integrate application itself with other core systems which are used by manufacturer and also it can transfer information between internal system and external applications, for example; supplier or retailer applications. Moreover, it can be implemented without engine or operation downtime. However, not only one choice that company can choose. There are other high performance ERP systems in the market such as Oracle, Microsoft dynamics series and some open source ERP softwares are also ready to be downloaded on the internet. As a result, choosing ERP solution for company is not easy either, some ERP system is not expensive but may be difficult to implement under company conditions. For that reason, it seems to be consulting firm that has to find the most suitable ERP solution for their customer, and this means using appropriate technology is sometimes such better than using the highest technology.
The pay off
One of the largest beverage manufacturer is “Red bull”. Only one product of the firm is advertised in the world market is Red bull energy drink. The company recognition is widespread around the world and also its manufactory. In this paper, there is a case study of Red bull China about its re-engineering implementation. The Hewlett Packard (2008) website provides information about Red Bull re-engineering project that the main reason which makes Red-bull China considered to implement its supply chain management is “real-time information”. Before the implementation, Red bull had experienced problems from data transfer between systems because there were three applications in its organization (application from third-party Logistics Company, the New-Grand ERP application for financial purpose and Java-based application for sales management). Because of this weakness, the company could not maximize over all operation in manufacturer which involve company itself, suppliers and retailers. The main idea of the project is to eliminate the problem of data interchange between departments. The company therefore wants to build its own customized ERP system in order to fulfill its SCM claims. After the implementation, HP presents Red bull benefits which are
• Effective communication between headquarter, branches and factories
• Increasing production and inventory management
• Mitigate financial risk by using real-time feedback and standardization of the review procedure
• Reducing dependency from logistics company by integrate ERP system with third-party logistics company system
Not only Red bull, the IBM (2008) website also provides some of its client in beverage industry which experienced the similar problems; Southern Wine & Spirits (SWS) is the nation’s largest wine, spirits, beer and non-alcoholic beverage distributor also found problems from its inventory overages and inefficient customer response. SWS solved the problems by built the 650,000 square-foot warehouse and use wireless technology environment to develop real-time information between various systems in the warehouse. As a result, SWS also earns benefits from re-engineering project which are
• Increasing of employee productivity
• Investment recovered faster 38 percent
• The precision of inventory management over 99 percent
• 20 percent warehouse space reduction compare with its previous multi-warehouse system
The interactive close
Because of high expectation of customer and new market competitors, many beverage manufacturers try to position their SCM to the top priority by implementing the business re-engineering. In general, ERP system is undoubtedly the most efficient SCM weapon in distribution business. Nevertheless, it is important that company must fully understand in the process of re-engineering before making project decision otherwise not only waste time and money, a project’s failure can ruin existing company systems and existing operations. However, ERP vendors now are improving their ERP solution to the next step which means; more flexible, more responsive, more customized and more efficient.
Chan, PS & Land, C 1999, ‘Implementing reengineering using information technology’, Business process management Journal, vol.5, no.4, pp311-324, accessed 03/08/2008, Emerald database.
Bommer, M & O’Neil, B 2001, ‘Strategic assessment of the supply chain interface: a beverage industry case study’, International Journal of Physical Distribution & logistics Management, vol.31, no.1, pp11-25, accessed 03/08/2008, Emerald database.
Al-Mashari, M 2002, ‘Enterprise resource planning (ERP) system: a research agenda’, Industrial Management & Data Systems, vol.102, no.3, pp165-170, accessed 03/08/2008, Emerald database.
Cheung, Y & Martin, L 2000, ‘SAP and business process re-engineering’, Business process management Journal, vol.6, no.2, pp 113-121, accessed 03/08/2008, Emerald database.
HP case studies
IBM customer success stories