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Heineken - Brewing a Better World

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Case 11: Heineken - Brewing a Better World

Why is Heineken developing a sustainable strategy for its sourcing operations? How does the sustainable strategy help Heineken to achieve its supply chain goals and its business goals?

Why is a sustainable sourcing policy more difficult to implement in the developing world, such as Africa, than in developed areas, such as Europe? How can Heineken support the sustainable initiative in places such as Africa?

The sustainable initiative incurs costs; for example, in segregating the sustainable supplies from the normal supplies. Who should

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Case 11: Heineken-Brewing a Better World
Why is Heineken developing a sustainable strategy for its sourcing operations? 
           Heineken utilized a sustainable strategy to ensure they achieved strategic supply security. Heineken utilizes food products such as sorghum, rice, barley, maize, and hops to make their products (Reinhardt et al. 6). With the demand for agricultural products worldwide rising significantly, the company needed to secure their raw materials for the current and future markets, thus creating a sustainable strategy. 
How does the sustainable strategy help Heineken to achieve its supply chain goals and its business goals?
           The sustainable strategy helped Heineken to meet its supply chain objective by working with local suppliers. They pushed for sustainable farming of the various raw materials they needed, providing the company with about 50-60% raw materials from the local market to meet their supply needs, reducing the need for import. The strategy also helped the company meet its business goals of superior growth through sustainable raw products that reduced operating expenses and their carbon dioxide footprint, thus offering competitive prices and quality products that meet the customers’ needs (Reinhardt et al. 5-6). 
Why is a sustainable sourcing policy more difficult to implement in...
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