E-Malt.com News article: USA: Heineken selects Satellite Logistics Group for Southeast demand point

Heineken USA has announced the selection of the Port of Savannah, Ga., as the site of its newest demand point center based on a strategic review of the company's supply chain activities both for its current activities and to meet management's 10-year growth vision, SupplyDemandChain reported October 23.

With the opening of the demand point center in Savannah, Heineken USA will shift operations from two of its current demand point centers in Charleston, S.C., and Norfolk, Va. The company will now rely on six demand point facilities to support its distributor network across the country.

Heineken USA has chosen Satellite Logistics Group to manage its product distribution operations at the new demand point.

"The quality Heineken and Amstel Light products consumers enjoy each day are brewed more than 3,000 miles away. Importing and distributing them to a distinctive and widespread market like the United States presents a unique challenge," said Dan Sullivan, chief operating and chief financial officerwith Heineken USA. "Over the past 10 years, we have worked to fine-tune and differentiate our supply chain to enable our distributors to maximize their operations to best serve our customers and consumers. The recent review of our systems will help lay the groundwork for optimal growth and efficiency for years to come."

Organizing for Growth

While Heineken USA's current supply chain footprint is well positioned for today's activities, the company looked for ways to streamline operations, create greater efficiencies and build flexibility to accommodate future growth.

Through the company's supply chain evolution, Heineken USA has been able to reduce costs for the company and its network of distributors while also providing an enhanced service model. While importing product from breweries thousands of miles away, Heineken USA has been able to reduce order lead time from brewery to store shelf from 10 weeks in 1996 to seven days presently.

When fully operational within the next four months, the new Savannah demand point will handle approximately 4,000 containers shipped from Heineken's breweries in Holland. Distributors in Georgia, North Carolina, South Carolina, Tennessee, Kentucky and Alabama will receive delivery of more than 7 million cases of Heineken and Amstel brand beverages processed through the facility.

As a result of the opening of the Savannah demand point, additional volume will shift to the New York demand point, which will now service an incremental 7,500,000 cases of beer annually for distributors in 18 states.

Identifying the Right Logistical Partner

In alignment with the selection of the Savannah site, Heineken USA has chosen beverage logistics specialist Satellite Logistics Group to manage its product distribution operations at the new demand point. The winner of Heineken USA's inaugural "Supply Chain Leadership Award," Satellite Logistics Group currently operates the brewer's Houston, Miami and Charleston demand point facilities.

In addition to its current distribution and logistics role, Satellite Logistics Group also manages Heineken USA's entire U.S. keg return operation.

"Satellite Logistics Group has been a trusted and valued partner for Heineken USA as we have evolved and refined our supply chain over the past decade," said Sullivan. "Due to their understanding of and involvement in our business, we anticipate a smooth transition of operations and continued high-quality service for our customers."


24 October, 2007