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tsingtao beer

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bianca liang

on 17 June 2013

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Transcript of tsingtao beer

Do you love beer?
Do you know TsingTao beer?

Company history
German and English businessmen found Tsingtao Brewery in Qingdao,China.
1903
1914
1948
1949
1972
1993
Tsingdao beer signed strategic
alliance with Anheuser-Busch
1991
1997
1999
2002
2009
Brand value
50,258,000,000Yuan
2011
Tsingtao offers IPO on
Hong Kong & Shanghai Stock Exchange.
Tsingtao export beer
to the USA.
Communists take control of China.
Japan seizes Tsingtao Brewery.
Tsingtao first exports
beer to Singapore.
the first Qingdao international
beer festival was held.
Tsingtao is restructured
as a holding company
Tsingtao produces over
1,000,000 tons of beer.
Top 500 in the world.
Glass manufacturing factory
Malt suppliers
Warehouse
Raw beer
Ripe beer
Warehouse
DC4
DC3
DC2
DC1
Retailer
Retailer
Retailer
Retailer
Retailer
Retailer
Retailer
Retailer
Retailer
Retailer
Retailer
Retailer
Customers
Tsingtao Beer Supply Chain
Integrated
logistics
Relation among players
Information sharing through supply chain
Factory
Make
Vendors
Move
Sell
Aluminum foil package company
othter suppliers
Glass manufacturing factory
Malt suppliers
Warehouse
Aluminum foil package company
othter suppliers
Raw beer
Ripe beer
Warehouse
Factory
QINGDAO
seattle
Warehouse
CDC in QD
RDC
in SZ
RDC
in SH
RDC
in TJ
RDC
in JN
FDC/Retailer
Customers
FDC/Retailer
FDC/Retailer
FDC/Retailer
FDC/Retailer
FDC/Retailer
FDC/Retailer
FDC/Retailer
FDC/Retailer
FDC/Retailer
FDC/Retailer
FDC/Retailer
CDC
RDC
FDC
Customers
3rd –party Transportation Co.
Sale Planning
Forecast demands
Invt Planning
Balance Stocks
with demands
Manufacturing
Opening new factories
Sales department
Keeping department
Factories
ERP
ERP
Sale

plan
Transporting

plan
Tsingtao Beer and
China Merchants Logistcs
opened an independent company to manage the logistics in 2002.

The distributing centers, all the warehouses and the vehicles are under the logistic company’s management.

The company adjusted the distributing according to the information of the sales plans and the stocks.

The main goal of the company is to
reduce the stocking cost and transporting cost
; other goal is to
improve the inventory ratio
.
To overcome the high risk and high cost of the sales in Accounting Receivable, they canceled many agencies, set up a CDC in QD,and 4 RDCs in TJ,JN,SH,SZ, which is the main market place.
Setting up RDC , FDC instead of warehouses of subsidiaries can
avoid the inefficient transportation and realize the reduction of costs.
FDC: the options are considered rational distribution of supply and marketing can quickly and accurately to
meet customer needs and reduce transportation and storage costs.
Tsingtao from the original headquarters and branch warehouses situation has become a

distribution network system.
Warehouse
CDC in QD
RDC
in SZ
RDC
in SH
RDC
in TJ
RDC
in JN
Customers
FDC/Retailer
FDC/Retailer
FDC/Retailer
FDC/Retailer
RDC
RDC
FDC/Retailer
FDC/Retailer
FDC/Retailer
FDC/Retailer
FDC/Retailer
FDC/Retailer
The company set the distributing center in some main market places.The distributors spread the retailers by themselves, and cooperated with the business consumers directly.

So, they could get the demand information directly.

Due to the planning and the forecasts made by the distributors, there are few second-transshipment happened under the distributing system.
Tsingtao Brewery Company has bought many factories between 2000and 2004. New factories set closed to the new market place with the new brand under Tsingtao Beer.So the beer can be manufactured and stored nearby the market in order to overcome the competitive advantages from the others.
ERP
ERP systems integrate internal and external management information across an entire organization, embracing finance/accounting, manufacturing, sales and service, customer relationship management.
ERP
Manufacturing
Quality
Equipment
Finance
Inventory
Sales
Testing
Purchasing
Its purpose is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders.
Enterprise resource planning
It facilitated and fully integrated the logistics, cash flow and the information flow, and standardized the business process.
It achieved budget management,real-time control of costs and cash forecasting.
Improved the accuracy and the timeliness of the information, in order to provide the data(cost, quality,progress.etc) to the managers.
Improved the CRM: speed up the ability to respond to customers' need.
Made a flexible system of operation to support a long-term plan.
ERP in Tsingtao Beer
The contribution of ERP to Tsingtao Beer
An integrated system that operates in real time without relying on periodic updates.

A common database, which supports all applications.

A consistent look and feel throughout each module.

Installation of the system without elaborate application/data integration by the Information Technology (IT) department
Characteristics
Why ERP?
Inside the scm, there is a problem from the market demand uncertainty. How to match supply and demand balance is the big headache for Tsingtao Brewery Co..
Retailer
Wholesaler
Distributor
Manufactory
Easy to give a raise to bullwhip.
Conclusion
Separating logistics from main business decreases the pressure of capital and resource. Tsingtao beer can pay more attention on production and sales.
Have a good relationship with their suppliers can reduce the cost and increase the quality.
Computerized management makes information transparent ,which avoid the bullwhip effects.
Make the beer taste better, and win more market value and more royal consumers.
Faced with the more and more drastic competition, the company has set goal to win the campaign, keeping
core competence
to produce the beer and the
advantage
over making it as early as possible send the products to the consumers
Transport beer as flowers.
Thanks for listening
Have a nice holiday...

Don't forget to have a Tsingtao Beer during your holiday...Cheers!

Suppliers
Distribution Model
customers
M2011923
Liang Liyuan
Full transcript