Financial Incentives Improve the Supply Chain: Heineken’s Journey

FINANCIAL INCENTIVES IMPROVE THE SUPPLY CHAIN: HEINEKEN’S JOURNEY By Brian Dershem With adequate financial incentives, Heineken USA improved its forecast accuracy, days of inventory held by distributors, and promptness in getting depletion information from them … to keep be reported quickly and each participant must A A t the present time, the two distinct families in the Heineken USA (HUSA) portfolio are the Dutch brands (which include our flagship brand Heineken as well as the newly introduced Heineken Premium Light, Amstel Light, and the non-alcoholic brand Buckler) and the Mexican brands (which includes Dos Equis, Tecate, Sol, Carta Blanca, and Bohemia). In 2004, we signed a three-year deal with FEMSA (Fomento Económico Mexicano, S.A. de C.V.) to import and market the Mexican portfolio. Our Dutch brands are brewed and packaged in Holland, shipped on ocean carriers, and delivered to seven ports in the United States: Miami, Charleston, Norfolk, New York, Houston, Long Beach, and Oakland. We maintain warehouses and demand centers in these areas. We have a three-tier beer distribution system— brewers, distributors, and retailers—to get the beer to our customers ...