Managing Technolgy At Ap Brewery Company Information Technology Essay

MARGINPorters Value Chain of Activities helps Companies place engineering presently available in a house through its activities. This is a systematic manner of analyzing how engineering can interact with the maps of a house, and lend value to the house.

Inbound Logistics in the instance of APB as can be seen from the above tabular array, cover Transportation Technology, which is in charge of puting the criterions for the trucks that carry the Beer for distribution. Screens for the truck are used to keep temperature, and safety and quality of the Beer. They besides carry out activities to assist the transporter co-ordinate bringing and pick up of empty tins. Inbound Logistics besides include a Computerized Management System, which helps supply a nexus from the providers of natural stuffs to the Company. The Handling / Storage and Warehousing Technology includes activities related to the handling of natural stuffs, including specially designed warehouses to hive away the stuff to keep quality control. This besides ensures a FIFO ( foremost in first out ) policy. The Testing Technology ties in with the Self Control Technology included in the Secondary Activities, which requires quality control over inputs such as power, gas, natural stuff to guarantee no jobs in the production of a high quality merchandise. Planning Technology requires activities

that expression at orders for Beer from the commercial section, and the coordination of adult male power, natural stuffs, power etc needed to guarantee the completion of those orders. All these activities in Inbound Logistics are advantageous to the company and have resulted in their being specific, and better able to supply quality control over its merchandises, and put to death planning and control over its stock list.

Operationss include Basic Process Technology, which is in charge of activities related to the brewing, filtration, agitation and storing of the Beer. After this the beer is packaged and sterilized. Materials Technology carries out activities that manage natural stuff after it has been tested and purchased by APB from the natural stuff provider. Depending on the oddities of the stuff, the procedure which uses them, is now adjusted to counterbalance for the oddities. Automation Technology is in charge of the running of the machine-controlled equipment. Management Technology is applied by the Brewery Department, to pull off the production of the Beer. Quality Control Technology tests the terminal merchandise. It is besides in charge of transporting out over 300 trials from the start to the terminal of production. The advantages of its Operations activities lie in the “ secret formula ” they use for doing the Tiger and Heineken Brands of Beer. APB besides uses a horizontal method of agitation, which though takes longer, consequences in commanding the quality and gustatory sensation of the Heineken Beer better than its rivals.

Outbound Logistics includes Transportation Technology, which ties in with activities related to Outbound Logistics. They are in charge of set uping the transit of the finished merchandise to the distribution centres. Data Control Technology activities include anything to make with information needed to the merchandise. For illustration day of the month of production, termination day of the months for the merchandise, barcodes, which distributor the merchandises go to etc. Communication System refers to communication activities between the Distributor, Transporter and the mill. This includes coordination with the Inbound ( natural stuffs ) and Outbound ( stop merchandise ) Logistics section. The Distribution Chain Technology refers merely to Draught Beer, which is sold straight to the mercantile establishments. The advantages here lie in the added value service APB provides to its distributers. Most of their rivals rely on the distributers to run the 2-way transit on their ain of presenting Beer and picking up empty bottles, which makes it less dependable.

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Selling, Gross saless & A ; Service includes activities related to Brand Strategy, which includes the development of the Brand in a globally consistent mode while continuing the trade name image. Communication System Technology refers to media interaction via Television, print advertizement, wireless etc. Interaction with the distributer and the terminal consumer, including responding to their remarks and concerns. Data direction refers to gross revenues and stock list control. Customer and Product Service Technology are all activities which bring added value to the mercantile establishments and distributers. APB provides them with operations know-how, fiscal support, and logistics support like bringing of Beer, and pickup of empty tins and bottles. By following a planetary trade name image, APB is in front of its rivals in supplying the public with a consistent trade name image, trade name scheme and planning through stock list control of the demand prognosis.

3.2 Secondary Activities

Secondary activities of a steadfast include Infrastructure, Human Resources, Technology

Development, and Procurement.

Infrastructure in the instance of APB includes International Operation Technology, which refers to all activities associating to the puting up and running of breweries worldwide. APB has successfully done this 158 times in assorted states. Planning and Budgeting Technology

refer to the executing of assorted phases before production, including expecting fiscal resources needed, and expected to be earned. Management Technology consists of the executive section in the company that acts as a affair between Head Quarters and the OPCO ‘s. The Infrastructure of a house besides includes International Brand Development Technology, which refers to the image development of the Beer, including expecting new market tendencies, which besides predict demand. APB ‘s advantage here lies in its experience in puting up so many OPCO ‘s in assorted states, with a tested and true method. They besides provide double control over fiscal planning, which consequences in their being able to obtain funding on better footings and conditions. A Global Brand development besides has its advantages in the consistent trade name image they are able to portray globally.

HR direction includes activities related to the preparation of staff in Training Technology, including a motive program through KPI ( Key Performance Indicators ) , and strategizing for future staff demands. They besides offer their staff loans for place and auto purchases – still a rareness in Vietnam.

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Technology Development refers to the “ secret formula ” that is followed for Tiger and Heineken. Raw stuffs engineering refers to company specific malt barm and H2O purchase by APB. Automation Technology refers to activities, which specify Brewing equipment, based on specific demands at APB. These machines are modified to run into APB ‘s demands. Informatics Technology and Software Development refer to the direction information engineering being used to supervise beer production, until the concluding phase, every bit good as activities needed for administrative intents. The package development is out-sourced to APB ‘s eyeglasses. The advantage here lies in the fact that APB gets what it needs to back up its nucleus activities by out sourcing while being really specific about its demands. They maintain choice control over it.

Procurement includes activities in In-house Development Technology, which provides control over the purchase of natural stuffs, and equipment purchase. These are developed as per APB ‘s demands. Self Control Technology so re-tests each point once more after it has been purchased. International Management and coordination engineering for out-sourcing and in- house refers to all activities related to the group purchase from the provider by Head quarters. HQ tells the OPCO ‘s from where to purchase. Information Technology refers to activities needed to be performed from the phase of the Warehouse to the Distribution. The advantages here lie in the dual testing that APB does with its natural stuffs, every bit good as the backup they provide in their dependence on out-sourcing for stuff by besides bring forthing in-house. On the other manus they do hold a disadvantage here, as their MIS merely covers the production procedure up to the point where the merchandise reaches the Warehouse. From that point to Distribution activities are done manually, which consequences in lost clip, and hapless stock list control of the Beer. Turn around clip organize the point of order arrangement to the Beer making into the custodies of the consumers can take up to 15 yearss. APB would profit from computerising this gross revenues system.

We will besides look at the value concatenation of APB ‘s rival in the premium and mainstream sections. This will clearly demo how APB clearly has many advantages in their value concatenation in comparing, which translates in to more value for the terminal user.

Rival ‘s ( Premium section value concatenation )

Inbound Logisticss

Computerized system

applicable until full storeRaw stuffs, Transport, be aftering


Outbound logistics Warehousing, transit, planning

Gross saless and Selling

Selling activities and after gross revenues

services are continued until the terminal user- Promotion/Ads

– Limited activities



Rival ‘s ( Mainstream section value concatenation )

Inbound Logisticss

No computerized systemRaw stuffs, Transport, be aftering


No after sale servicesOutbound logistics Warehousing, transit, planning


APB has a better value concatenation, which it uses in its OPCO ‘s:

Inbound Logisticss

Computerized system

applicable until full storeRaw stuffs, Transport, be aftering


Outbound logistics Warehousing, transit, planning

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Gross saless and Selling


Selling activities and after gross revenues

services are continued until the terminal userOutlet/Drinker

– Supplying preparation to distributers

– Operation support ( warehousing, be aftering )

– Know-how transportation

– Conveyance


– Fiscal direction accomplishment

4. Dual Technology Tree ( step 5 )

Appendix 4 – Double Technology Tree

Appendix 5 – The Brewing Procedure

In Appendix 4 we review the bing merchandises, procedures and services so as to place their technological potency. We besides add in to this image, any new merchandises we may see bring forthing utilizing the same engineering.

At APB, the Marketing and Gross saless Department foremost provides figures on awaited demand, which decides the production figures. At this point the Inbound Logistics Department boots in by planning and buying natural stuffs, and planning for other inputs needed. Water is obtained locally through local beginnings, and treated at a Water intervention works on the premises. Malt is besides obtained, and the storage installations and proving installations oversee the natural stuff bringing to guarantee quality. Quality control proficient services oversee every phase of the Beer procedure to optimise quality control. Hops and yeast are added at the agitation phase and the secret formula comes into drama. The formula is assorted. The temperature and timing of the barm are controlled, and it is put through either perpendicular filtration ( for Tiger Beer – an

industry criterion ) , or horizontal filtration ( for Heineken – a nucleus engineering ) . The Beer is now stored. It is so packaged after being sterilized, and set in to tins, bottles or draft. It now lies in the Warehouse.

At this point the Marketing and Gross saless section takes over, while organizing with Brand Strategy Technology and Customer Needs Technology. These include media managing, print, advertisement, publicities, research etc. This requires distribution to the retail merchants and straight to the mercantile establishments for draught beer. This is done on and off premises. The Financial direction system comes in to play at every phase of the production from the natural stuff to the bringing of the Beer to the client. A computerized merchandising system could be considered at this phase, which presently does non be. A manual system in topographic point slows turn around clip well. This would assist with the publicity, gross revenues, checking of stock, stock list, and the placing of orders based on up to day of the month information on handiness. This would besides ease the return of empty bottles.

Another chance for APB would be to come in the local fresh beer market, which is the largest market section within the state. It fundamentally requires the same procedure for production, but some experimentation could be done with new natural stuffs such as rice. It would besides necessitate direct bringing, and would cut out the distributer ensuing in greater nest eggs. APB could besides use new thoughts learnt in-house about shorter sterilisation that it is successfully utilizing for doing draught beer.

The Brewing Process as shown is self-explanatory.