Heineken’s value chain consist of five stages that starts from buying process of raw materials and ends with collaborations with distribution partners.
1. Buying Raw Materials: The process includes finding suppliers that provide ingredients for beer production. Besides ingredients, raw materials are needed for bottles of beers and many more. The company focuses on quality of raw materials very much.
2. Production Process: After buying raw materials, the manufacturing- productions process starts in Heineken’s factories. To control all operations during the process, the company makes sure that everyone has the same understanding of each step in all countries. Especially, when it comes to using management information systems for recording the process, it is essential to have the same understanding of the terms in every country Heineken operates.
3. Finished Products: After manufacturing, the finished beers are ready to sales. The finished goods will be places in the warehouses. The company tries to reduce its inventory cost like other companies and the next margin process comes to reduce costs.
4. Margin Process: the process includes collaborative pricing strategy between Heineken and its buyers. Heineken negotiates how much the company should get and how much the buyers will get from the sales. Heineken’s buyers are retailers, bar, restaurant, club, hotel owners and other intermediaries that can be defined as Heineken’s distribution partners.
5. Collaboration Process with Distribution Partners: After dealing with pricing, Heineken is open to collaborate with its distribution partners. The best deals are what everyone is into. The company works with those who can provide long-term stable profitability for the company. This process is the final part of Heineken’s value chain that ends with distribution partners. However, Heineken controls the distribution’s reputations during the sales to make sure that Heineken is earning customer’s loyalty and trust. Not to damage the brand image, distribution partners are also responsible for delivering Heineken’s products to customers in the best way.
Heineken uses management information systems to control and manage its value chain effectively and efficiently. This leads the company to reduce extra costs and become more profitable and productive in the long-term.