Procurement and Logistics Challenges in the Brewing Industry: Analysis

Verified

Added on  2022/11/07

|24
|6146
|325
Report
AI Summary
This report delves into the procurement and logistics challenges facing the global brewing industry, which is projected to reach $815.4 billion by 2025. The study highlights the emerging gaps between beer production and consumption markets, with countries like China, India, and Brazil leading consumption while traditional markets experience stagnation. Procurement challenges include climate change-related issues such as drought, heatwaves, and barley shortages, impacting production costs. Logistics issues are also examined, including pressures to reduce carbon emissions, which limit operational capabilities. The research investigates the impact of these challenges on the brewery industry and its stakeholders, answering key research questions about the impact of procurement and logistics on the industry and its stakeholders. The report's objectives, based on the SMART framework, focus on identifying and analyzing these impacts to provide insights for strategic decision-making by brewery firms, wholesalers, retailers, and consumers. The literature review covers key concepts such as procurement, supply chain management, and the challenges in the brewing industry, emphasizing the importance of addressing these issues for the industry's sustainability and stakeholder interests.
Document Page
Running head: SUPPLY CHAIN MANAGEMENT
Procurement and Logistics Challenges in the Brewing Industry-Investigation and Analysis
Name of the student
Name of the university
Author Note:
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
1SUPPLY CHAIN MANAGEMENT
Table of Contents
Chapter 1: Introduction to the topic and importance of carrying out the research:.........................3
Introduction:....................................................................................................................................3
Aims and objectives:....................................................................................................................4
Chapter 2. Key literature review:.....................................................................................................6
Significance and scope of study:.....................................................................................................6
Key words:...................................................................................................................................6
Literature:........................................................................................................................................6
Procurement challenges of the brewery industry:...........................................................................6
Logistics challenges facing the beer industry:.............................................................................9
Impacts of logistics and procurement challenges on stakeholders of the brewery industry:.....11
Chapter 3. Research methodology.................................................................................................12
Research design:............................................................................................................................12
Data collection methods:...............................................................................................................13
Ethical issues:................................................................................................................................14
Chapter 4: Research plan:..............................................................................................................14
Organisation of study:................................................................................................................14
Project plan:...................................................................................................................................15
Chapter 5. Outcomes of the analysis:............................................................................................15
Recommendation:..........................................................................................................................15
Document Page
2SUPPLY CHAIN MANAGEMENT
Innovation in product line:.....................................................................................................15
Product diversification:..........................................................................................................16
Reference and Bibliography:.........................................................................................................17
References:................................................................................................................................17
Bibliography:.............................................................................................................................20
Document Page
3SUPPLY CHAIN MANAGEMENT
Chapter 1: Introduction to the topic and importance of carrying out the research:
Introduction:
The global brewing industry is heading towards severe sustainability challenges. As per
Bloomberg, the global beer processing is estimated to reach $ 815.4 bn by 2025. The Asia
Pacific market is expected to dominate the future beer market surpassing traditional beer markets
like North America and Europe (Bloomberg.com, 2019). The main countries which are emerging
as leading consumers of the beer are China, India and Brazil while the developed markets are
experiencing fall in production. The US however remains one of the main players in the beer
market (Prnewswire.com, 2019). Global financial company reports that the countries which are
experiencing increasing per capita income are generally leading the beer market since beer is a
luxury product (Jpmorgan.com, 2019). The main beer production countries are countries like the
UK and Germany many of which are facing stagnation of beer consumption (Statista.com, 2019).
This means that there are emerging gaps between the main markets is beer production and beer
consumption. Thus, the main beer marketing companies are facing challenges to procure beer
(finished goods) from the suppliers, many of which are based in the foreign countries, especially
in the face of cost-cutting requirements. The Guardian in an article it published in 2018
mentioned that global beer market is heading towards severe reduction of beer owing to climatic
change. This is because climate change is responsible for drought and heat waves. In fact, the
main brewing nations like Belgium and Ireland are some of the nations reeling under these
hostile climatic conditions (Carrington, 2018). The Smithsonian Magazine reported in 2018 that
only 17% of the global production of barley is mobilised to make beer (Katz, 2018). This means
that the global is bracing to severe supply chain issues.
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
4SUPPLY CHAIN MANAGEMENT
The transport and warehousing sectors are also facing severe pressure to minimise their
carbon dioxide and fuel waste generation in order to reduce their impacts on the environment
(Unctad.org, 2019). These pressures are undoubtedly limiting the operational capability of the
logistics sector which is in turn creating challenges for other industries including the global
brewery industry which use logistics to mobilise their resources. The aim of the research would
be investigate the procurement and logistics challenges which the brewery industry is facing. The
importance of the study lies in the fact the challenges which the brewery industry firms are
facing are capable of challenging the sustenance of the entire industry and breach the interests of
its stakeholders. Thus, the research would enable digging deeper into the issues which would
ultimately pave ways for recommendation of the strategies which may be adopted to deal with
the issues. The value of work lies in the fact it sheds light on the aspects of supply chain
challenges in the brewery industry which the firms involved in industry need to consider while
making their business strategies. These beer making firms should consider the supply challenges
as risks and make strategies to mitigate them. These strategies would enable the brewery firms to
take steps to minimise the losses they would face owing to supply chain risks and demand and
supply risks in the future. This taking of timely strategies to tackle supply chain risks by the
brewery firms would ensure the wholesalers and retailers of beer would be able to obtain steady
supply of beer to be marketed to the customers. Thus, it can be established that the research
would create value for the different stakeholders of brewery industry namely, brewery
companies, wholesalers of beer, retailers of beer and customers consuming beer.
Aims and objectives:
The research would aim to explore two challenges facing the global brewery industry.
The first challenge which would be dealt with would be procurement challenges facing the
Document Page
5SUPPLY CHAIN MANAGEMENT
brewery industry. This is because there are gaps between the markets producing beer and
markets consuming beer. The countries like the USA, Jamaica, China and India are showing
increase in the consumption of beer. The traditional beer markets consisting largely of the
European markets are facing a slump in consumption. These markets on the other are important
producers of beer. This difference between the markets of beer production and beer consumption
would pose procurement challenges before the beer marketing companies like Red Stripe
(Redstripebeer.com, 2019). The second procurement challenge which looms over the beer
industry is climate change which is responsible for heat waves, drought and floods. These natural
calamities have also hit the production of the main raw material which goes into brewing of beer-
barley. This shortage of barley would cause price to surge throughout the supply chain of beer.
This would be push up the procurement costs of the beer marketing companies eventually
pushing up the sales price of beer. The research would uncover these procurement challenges
which the brewery industry is facing.
The second challenge which the report would uncover, is the logistics issues the brewery
industry is facing. The global logistics industry is reeling under the pressure to minimise
emissions of carbon wastes which to a large extent has limited their operational power. The
logistics companies are being forced to surge their rates which is again hitting the other
industries dependent on logistics services which also includes the brewery industry. This means
that the brewery industry is bracing for mounting procurement and logistics challenges.
The context of supply chain risks looming over the brewery industry is unique for two
reasons. First of all, beer is not a basic necessity. Thus, the supply chain risks facing the industry
would appear to be less severe compared to similar risks in the markets of the necessity products
like food products. Secondly, though beer is not a necessity, the brewery industry impacts a large
Document Page
6SUPPLY CHAIN MANAGEMENT
numbers of stakeholders like customers, wholesalers and the bars serving beer. Thus, the
uniqueness of the challenges lies in the fact that they may not impact the end customers as much
as supply chain challenges in the food industry would but they would severe affect the business
generation of the business firms operating in the industry like retailers of beer and restaurants
serving beer. The knowledge which would be created as the outcome of the research would
consist of the challenges facing the brewery industry and the impact of the challenges on the
industry as well as its stakeholders like suppliers of beer in the market.
The research would aim to answer the following research questions:
1. Do procurement challenges impact the brewery industry?
2. Do logistics challenges impact the brewery industry?
3. Do logistics and procurement challenges impact the stakeholders of the brewery industry?
The following research objectives which the research would eye to achieve:
1. Impact of procurement challenges on the brewery industry.
2. Impact of logistics challenges on the brewery industry.
3. Impacts of logistics and procurement challenges on the stakeholders of the brewery industry.
SMART analysis of the objectives:
The objectives of the research mentioned above would be based on the SMART (specific,
measurable, achievable, realistic and time based) framework. Firstly, the objectives should be
specific in terms impacts. For example, the impact of the procurement challenges on the brewery
industry like reduction in the production of beer (finished goods) can be specifically pointed out.
The objectives should be measurable. For example, the losses which the brewery firms and their
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
7SUPPLY CHAIN MANAGEMENT
stakeholders would suffer owing to shortage of raw materials to manufacture of beer like barley
can be measured in terms of money. The objectives of the research should be achievable. For
example, the firms in the brewery industry upon identifying the procurement challenges which
they may face in the future, would form strategies to tackle the challenges. Thus, in other words,
they would be able to reduce the losses they would suffer owing to procurement challenges
which would be an achievement. These firms can also set specific deadlines within which would
manage procurement risks at least to a certain extent. Thus, the objectives would be time based.
The objectives which the research would aim to achieve would be realistic. For example, the
strategies which the brewery firms would adopt in order to deal with procurement challenges like
maintaining of contingency inventory of raw materials would be realistic. Thus, it transpires
from the analysis that the objectives would qualify the SMART framework.
Chapter 2. Key literature review:
Significance and scope of study:
The significance of the study lies in the fact that it would explore the impact of the
procurement and logistics issues facing the brewery industry. The brewery industry is expected
to reach a value of $bn 815.4 by 2025 (Bloomberg.com, 2019). The industry supports an
immense base of stakeholders ranging from the management of the firms operating the industry
to the consumers of beer. Thus, these challenges impacting the brewery would also impact
interests of the stakeholders as well. The scope of the study would cover the challenges faced by
procurement and logistics operations of the brewery industry. The scope would also take into
account the impact these two challenges have on the interests of the stakeholders. The scope of
the research would be mainly revolve around the procurement challenges in the brewery
Document Page
8SUPPLY CHAIN MANAGEMENT
industry. It would not consider any other industry like food industry. The main bodies of
knowledge on which the research questions would be the concept procurement and logistics.
Key words:
Procurement, logistics, brewery industry, brewery and stakeholders.
Literature:
Procurement challenges of the brewery industry:
Procurement is the entire process which enables the manufacturing companies to seek
and obtain raw materials and work-in-progress which go into manufacturing of finished goods.
Vaidya and Campbell (2016) define the term procurement as, Procurement is a subset of
supply chain management (SCM). SCM involves the activities associated with moving
goods and services including sourcing and procurement, order processing, inventory
management and customer service.’ Thus it can be inferred that procurement is the function
which involve movement of raw materials from the sources of origin to the manufacturing
processes of companies. Njagi and Shalle (2016) strengthen the opinion by pointing out that
procurement management plays a very significant role in the manufacturing process of
manufacturing companies and the consequent business generation. Sluis and De Giovanni (2016)
add to the discussion by pointing out that companies in order to ensure that the suppliers supply
raw materials of appropriate quantity and, quality of raw materials within the required time at an
agreed cost, enters into procurement contracts with the latter. Thus, it is clear from this analysis
it is clear that procurement of raw materials involves legal contracts between the parties involved
and any disruption would cause legal conflicts among the parties to the contract. Thus, it is clear
that procurement issues facing the brewery industry would impact the suppliers and the beer
Document Page
9SUPPLY CHAIN MANAGEMENT
manufacturing companies. The first procurement issue which the brewery industry is facing in
disparity of demand and supply in the market. The landscape of the brewery industry is
undergoing drastic changes. The nations which are emerging into leading consumers of beer are
India, China, Jamaica and Brazil. The USA is still one of the main consumers of beer as it was in
the past. The main traditional markets consuming beer like Germany as facing slump in demand
for beer (Prnewswire.com, 2019). One of the main factors encouraging consumption of beer in
these countries is rise in per capita income which is enabling the consumers spend more amount
of their disposable towards purchase of beer (Jpmorgan.com. 2019). Carrington (2018) can be
iterated here to mention that the main nations producing beer nations are facing immense risks
owing to climatic changes. These nations are facing hostile weather conditions like heat waves
and droughts. These hostile weather conditions have damaging impacts on the main raw material
required to manufacture beer-barley. The Smithsonian Magazine mentioned in an article it
published in 2018 that around only 17% of the global barley production in channelized to
manufacture beer. The rest 83% is used to feed animals (Katz, 2018). Thus, it can be pointed out
that hostile climatic conditions would result in reduction of barley which would eventually make
the suppliers supply less amount of barley to the barley making companies. Kuzmin (2016)
throws light the context to point out that shortage in availability of raw materials enable the
suppliers charge more price for the same. Sluis and De Giovanni (2016) can be iterated here to
mention that the procurement is essentially a legal agreement between the suppliers of the raw
materials and the manufacturing firm acquiring the raw materials. The two parties agree amongst
themselves the aspects like quality, quality and prices. Thus, one can point that owing to the
procurement contracts, the beer manufacturing companies have to bear immense procurement
costs. This results in the increase in the costs of manufacturing of beer (Gelderman, Semeijn &
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
10SUPPLY CHAIN MANAGEMENT
de Bruijn, 2015). Parise et al. (2017) support the argument by pointing out that beer
manufacturing firms are often forced to either reduce their quantity of production or reduce the
barley content in the beer. While the first results impacts the marketing of beer (finished goods),
the latter results in compromise with quality. Both these outcomes lead to low customer
satisfaction which results in generation of lower amount of revenue. Kuzmin (2016) can be
iterated to point out that increasing manufacturing costs and dipping revenue generations results
in generation of low net profits. The beer manufacturing companies are thus able to give low
returns to their investors. This means that they are able to attract lower amount of capital which
weakens their financially even more. Thus, it transpires from the analysis that procurement
challenges have devastating impacts on the beer industry. These challenges result in shortage in
the availability of the key raw material like barley. The beer manufacturing firms suffer surge in
procurement and manufacturing costs which results in generation of lower profit margins. The
beer manufacturing and marketing companies are forced to compromise with either quality or
quantity of the beer marketed which results in low customer satisfaction and low revenue
generation. Thus, procurement challenges challenge the very financial strength and market
sustainability of the brewery firms. In other words, procurement challenges would have
negative impacts on the brewery industry (problem of the research).
Logistics challenges facing the beer industry:
The brewery industry faces logistics challenges owing to its heavy dependence on
logistics to make beer products available to customers. The markets like China, India, Brazil,
Jamaica and Vietnam are emerging as the main consumers of beer. The United States of America
however retains its position as one of the largest consumers of beer (Prnewswire.com, 2019).
The nations like Germany remain to be major manufacturers of beer but face fall in consumption
Document Page
11SUPPLY CHAIN MANAGEMENT
of beer (Jpmorgan.com, 2019). Thus, it is evident from this analysis that there is a wide gap
between demand and supply of beer in the global brewery market. Dong and Boute (2019) point
out that the brewery companies have to transport immense amount of beer from the main
manufacturing markets to the main markets of consumption. The United Nations Conference on
Trade and Development reported that there have been increase in export of goods from emerging
economies. Moreover, economic growth has slowed down in developed markets like Western
Europe which are also among the main beer manufacturing nations (Unctad.org, 2019). This
means that these countries are experiencing fall in the productivity which also means the people
in countries are receiving less wages. Thus, it can be clearly be pointed out that the consumers in
these markets would consume less alcoholic products like beer. The outcome of this fall in
domestic demand for beer would necessitate the firms manufacturing beer making firms based in
these export their finished goods to the markets like China and India which are experiencing rise
in demand for beer. One can also point out that these markets like China and India in order to
meet their domestic demand for beer and earn foreign currency by exporting beer have already
set up their own resident beer manufacturing firms (Prnewswire.com, 2019). This means that the
beer exporting firms based in markets like Western Europe would face competition from the beer
manufacturing firms already present in markets like India and China. This competition in the
supply chains of beer located in different markets is often referred to beer game. This results in
immense logistics costs which add the procurement costs to surge the manufacturing costs and
ultimately lower the profit margin. The authors also point out that logistics firms in order to
reduce their environmental footprint are shifting towards decarbonisation. These logistics
companies use superior quality fuel which is expensive and cause less pollution. Kai, Wang and
Ma (2016) strengthened the argument by pointing out that these logistics companies as a result
Document Page
12SUPPLY CHAIN MANAGEMENT
very high prices for collection and transportation of brewery inventory from the brewery firms.
Logistics companies often reduce the operations to fuel costs and mostly serve premium clients
at very high costs. Thus, the beer manufacturing and marketing firms have to bear immense
amount of logistics expenditure. Tadejko (2015) ushers in the second issue which the brewery
firms face-risks of online hacking of data which includes customer data and financial data.
The beer marketing companies have to transport beer across long distances in appropriate
conditions. The logistics companies in order to manage transportation of large quantity of
inventory of raw materials and finished products in appropriate conditions use advanced
technology like big data. The logistics firms and their clients (beer manufacturing and marketing
firms in this case) share immense amount of data on the digital platform. This availability of
immense amount of data in the digital formats attract hackers. Thus, it is evident the hacking is
one of the logistics issues which logistics firms and brewery firms face. Hooker and Pill (2016)
make the severity of the issue more prominent by pointing out that both the logistics firms and
brewery firms have to face Cybersecurity Litigation which may be launched by the
stakeholders affected due to the hacking like customers and investors. Thus, it is clear that
hacking and consequent legal risks are severe issues which the brewery firms face. The United
Nations face the third challenge which logistics firms face in terms of logistics-natural
calamities. It mentions that increasing frequency and intensity of natural calamities like flood
and earthquake damage transport infrastructure like roads and bridges. These calamities also
result in damage to the standing logistics assets like vehicles and warehouse (Unctad.org, 2017).
Thus, it is clear from the analysis that natural calamities disrupt smooth logistics operations and
prevents beer marketing from obtain materials within time. The brewery companies have to incur
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
13SUPPLY CHAIN MANAGEMENT
loss of in transit inventory owing to natural hazards, which surge their losses. Thus, it transpires
from the discussion that the brewery industry is facing severe logistics issues.
Impacts of logistics and procurement challenges on stakeholders of the brewery industry:
The procurement and logistics issues have severe impacts on the stakeholders of the
brewery industry. Eskerod, Huemann and Savage (2015) define the term stakeholder as ‘those
groups without whose support the organization would cease to exist’. Thus, it is evident from the
statement that firms should protect the interests of their stakeholders in order to enjoy their
perpetual support. Tantalo and Priem (2016) support the opinion of the authors by pointing out
that firms should aim to create value for their stakeholders in order to enjoy their support. Mazur
and Pisarski (2015) point out that firms have to protect the interests of both internal and external
stakeholders to the feasible extent. The internal stakeholders consists of the management bodies
of the firms and the employees of the firms. The external stakeholders of the firms include
suppliers, investors, government bodies, customers, banks, stock exchanges, logistics companies
and distributors. Thus, on the whole one can point out that firms should protect the interests of
these immense number of stakeholders. Razak, Nirwanto and Triatmanto (2016) point out that
product quality is very important to ensure customer satisfaction and ultimately revenue
generation. Parise et al. (2017) can be reiterated to point out that brewery firms owing to deal
with shortage of raw materials and reduce their manufacturing costs are often forced to
compromise with the quality of their beer which is their finished goods. This low quality of beer
does not create value for customers and result in low customer satisfaction. The outcome of this
low customer satisfaction is that the brewery firms lose their customers to their competitors.
They as a result generate low margin of profits. This means management of these brewery firms
generate low profits and are able to low ROI to the investors (Ely, 2019). This means that
Document Page
14SUPPLY CHAIN MANAGEMENT
interests of customers, investors and management of the brewery firms are breached. For
example, Heineken, the leading global brewer based in Netherland reported EUR 1.7 bn
compared to EUR 1.91 bn in the first half of 2019 alone. The company also experienced fall in
its share prices due to adverse weather conditions (McCormick, 2019). This means the firm was
not able to generate expected rate of profit and give back high ROI to the investors. The
procurement issues and logistics issues are also breaching the interests of another significant
internal stakeholder group-the employees of the brewery firms. The interests of the employees
lies in better salaries and higher professional growth opportunities but the two issues are
breaching their interest as well. The Fortune Magazine reported that Lagunitas Brewing, one of
the leading breweries of the US was laying of ‘12% of its staff as the U.S. craft beer sector
continues to soften’ (Morris, 2018). The factors which were held responsible for the layoff were
decreased profit which means that the firm could support its existing operational costs. Thus, it
can be pointed out that the failure of the breweries to protect the interests of the customers also
resulted them in failing to protect the interests of the employees. It also transpires from the
analysis that the brewery companies owing to reduction in profit generation would be able to pay
less tax to the government (Hailu, 2018). In fact, the layoffs of employees would result in
increase in the unemployment rates, thus inflicting damage to the interests of the economy as a
whole (Bildirici & Ozaksoy Sonustun, 2018). Thus, it is clear that the procurement and logistics
issues are which the brewery industry is facing are breaching their interests of the stakeholders
both internal and external.
Research gaps:
The research suffers from several gaps. First of all, the topic of the research namely,
procurement challenges facing the brewery industry requires immense research. Gathering
Document Page
15SUPPLY CHAIN MANAGEMENT
sufficient amount of knowledge on the topic would require studying information about several
brewery markets like the USA and China, which is not actually feasible in reality. Moreover, the
brewery industry firms generally do not publish information regarding their supply chain
challenges. This makes it difficult to establish the problem of procurement issues in the brewery
industry based on official websites of the companies concerned. The establishment of the
statements and claims made in the research have to be based on indirect sources like newspapers
and magazines.
Chapter 3. Research methodology
Research design:
The research design which was adopted to carry on the research was deductive approach.
The hypothesis was developed based on the existing bodies of work. One can point out that the
challenges which the brewery industry is facing in terms of procurement and logistics and their
impacts have attracted considerable attention from the stakeholders. The topic has explored in a
large number of researches by several authors. The researches can be supplemented by a large
number of articles published by renowned magazines and newspapers like the Forbes and the
Guardian respectively. This made deductive approach extremely justified to carry on the
research.
Actions (Procurement and Logistics Challenges in the
Brewing Industry-Investigation and Analysis)
Time
(Days) Start Finish
Submission of the project proposal 15
Mon
12/2/19
Fri
3/13/20
Literature review 45
Mon
12/2/19
Fri
12/20/1
9
Data collection 15
Mon
12/23/1
9
Fri
2/21/20
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
16SUPPLY CHAIN MANAGEMENT
Data analysis 15
Mon
2/24/20
Fri
3/13/20
Submission of draft report 1
Mon
12/2/19
Fri
12/20/1
9
Professor recognises changes/ammendments 7
Mon
12/23/1
9
Mon
12/23/1
9
Ammendments as per comments 7
Tue
12/24/1
9
Wed
1/1/20
Submission of the final report 1
Thu
1/2/20
Fri
1/10/20
Gantt Chart attached.
Data collection methods:
The researcher has at first considered several approaches to data collection namely,
secondary data collection, primary data collection and mixed methods of data collection. The
method which has come out to be most suitable to gather data on the research topic was
secondary data collection (Bryman & Bell, 2014). One can point out that the topic, ‘Procurement
and Logistics Challenges in the Brewing Industry-Investigation and Analysis’ required immense
amount of information. This is because the topic itself consisted of two broad areas namely,
procurement issues and logistics issues. These two issues in turn indicated very strong to the
third concept which was impact of the issues on the stakeholders of the brewery industry. This
required analysis of immense amount of secondary sources like articles, journals, books and
newspapers. The researcher also read extensively through a large number of magazines like the
Fortune and the Smithsonian Magazine. The information available on the digital platforms like
the information published by JP Morgan and Red Stripe Beer has given the analysis a stronger
base. Moreover, collecting a sufficiently large body of data to execute the research would require
Document Page
17SUPPLY CHAIN MANAGEMENT
interviewing stakeholders like customers across different brewery markets like the USA and the
EU markets. Interviewing of this immense number of customers would not be feasible. Thus, one
can establish on this ground that the most suitable method of data collection is secondary data
collection.
Ethical issues:
The researcher faced the ethical challenge of presenting authentic secondary data. First of
all, the topic, ‘Procurement and Logistics Challenges in the Brewing Industry-Investigation and
Analysis’ covered an immense area of research. Secondly, immense amount of information is
available on the digital platform on the topic. Thus, there was the challenge of ensuring the data
being incorporated in the research was authentic. Secondly, there are several magazines and fake
sources claiming apparently correct information. Thus, again, the researcher had to face the
challenge of presenting accurate information.
Chapter 4: Research plan:
Organisation of study:
The research would be divided into five chapters. The first chapter would introduce the
topic and the importance of carrying out the research. The second chapter would consist of
literature review. It would explore the existing bodies of work pertaining to the topic. The third
chapter would be methology followed by the fifth chapter which would present outcomes of the
analysis of the data.
Project plan:
The researcher would carry out thorough planning before embarking on the research. He
should ensure authenticity of the information he would gather and present.
Document Page
18SUPPLY CHAIN MANAGEMENT
Chapter 5. Outcomes of the analysis:
The transpired from the analyses that the brewery firms should take steps to deal with the
procurement challenges which the industry is bracing for. This is important because the brewery
industry impacts several groups investors like government, customers, suppliers of raw materials
and restaurants serving beer. The procurement issues which the brewery firms would face upon
failing to reduce the procurement challenges would impact these stakeholders as well. Thus, the
brewery firms should take steps to manage the procurement risks in order to protect their
interests of the stakeholders.
Reference and Bibliography:
References:
Bildirici, M. E., & Ozaksoy Sonustun, F. (2018). Backward bending structure of Phillips Curve
in Japan, France, Turkey and the USA. Economic research-Ekonomska
istraživanja, 31(1), 537-549.
Bloomberg.com. (2019). Retrieved 30 November 2019, from https://www.bloomberg.com/press-
releases/2019-07-15/beer-processing-market-worth-815-4-billion-by-2025-exclusive-
report-by-marketsandmarkets
Bryman, A., & Bell, E. (2014). Research methodology: Business and management contexts.
Oxford University Press Southern Africa.
Carrington, D. (2018). Theguardian.com. Retrieved 30 November 2019, from
https://www.theguardian.com/environment/2018/oct/15/climate-change-to-cause-
dramatic-beer-shortages-extreme-weather-price
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
19SUPPLY CHAIN MANAGEMENT
Dong, C., & Boute, R. (2019). The Beer Transportation Game: How to decarbonize logistics by
moving freight to sustainable transport modes. INFORMS Transactions on Education.
Ely, R. (2019). THE EFFECT OF PRODUCT QUALITY TO THE CUSTOMER
SATISFACTION AND CUSTOMER LOYALTY ON THE LOCAL FOOD (Case Study
in PT ASESE) (Doctoral dissertation, Universitas Andalas).
Eskerod, P., Huemann, M., & Savage, G. (2015). Project stakeholder management—Past and
present. Project Management Journal, 46(6), 6-14.
Gelderman, C. J., Semeijn, J., & de Bruijn, A. (2015). Dynamics of service definitions—An
explorative case study of the purchasing process of professional ICT-services. Journal of
Purchasing and Supply Management, 21(3), 220-227.
Hailu, F. K. (2018). Employees’ Perception towards the Business Advantages of Corporate
Social Responsibility (CSR) Initiatives of Ethiopian Brewery Industry.
Hooker, M., & Pill, J. (2016). You’ve Been Hacked, and Now You’re Being Sued: The
Developing World of Cybersecurity Litigation. FLA. BJ, 90(1), 31-37.
Jpmorgan.com. (2019). Retrieved 30 November 2019, from
https://www.jpmorgan.com/global/research/beer-market
Kai, K., Wang, X., & Ma, Y. (2016). A Multi-Objective Collection-Distribution Center Location
and Allocation Problem in a Closed-Loop Supply Chain for the Chinese Beer Industry.
Katz, B. (2018). Smithsonianmag.com. Retrieved 30 November 2019, from
https://www.smithsonianmag.com/smart-news/climate-change-could-lead-widespread-
beer-shortages-180970561/
Document Page
20SUPPLY CHAIN MANAGEMENT
Kuzmin, E. A. (2016). Sustainable food security: Floating balance of markets. International
Journal of Economics and Financial Issues, 6(1), 37-44.
Mazur, A. K., & Pisarski, A. (2015). Major project managers' internal and external stakeholder
relationships: The development and validation of measurement scales. International
Journal of Project Management, 33(8), 1680-1691.
McCormick, M. (2019). Ft.com. Retrieved 30 November 2019, from
https://www.ft.com/content/d5946ee4-b1cd-11e9-bec9-fdcab53d6959
Morris, C. (2018). Fortune.com. Retrieved 30 November 2019, from
https://fortune.com/2018/10/03/heineken-lagunitas-brewing-layoffs/
Njagi, M. M., & Shalle, N. (2016). Role of supplier relationship management on procurement
performance in manufacturing sector in Kenya: A case of East African
Breweries. International Academic Journal of Procurement and Supply Chain
Management, 2(1), 1-20.
Parise, A., Kovaleva, E. G., Glukhareva, T. V., & Shatunova, S. A. (2017, September).
Biotechnological production of non-traditional beer. In AIP Conference
Proceedings (Vol. 1886, No. 1, p. 020098). AIP Publishing.
Razak, I., Nirwanto, N., & Triatmanto, B. (2016). The impact of product quality and price on
customer satisfaction with the mediator of customer value. Journal of Marketing and
Consumer Research, 30(1), 59-68.
Redstripebeer.com. (2019). Retrieved 6 October 2019, from https://redstripebeer.com/heritage/
Document Page
21SUPPLY CHAIN MANAGEMENT
Retrieved 30 November 2019, from https://www.prnewswire.com/news-releases/analyzing-the-
500-billion-global-beer-industry-2019-300916262.html
Sluis, S., & De Giovanni, P. (2016). The selection of contracts in supply chains: An empirical
analysis. Journal of Operations Management, 41, 1-11.
Statista.com. (2019). Retrieved 30 November 2019, from
https://www.statista.com/statistics/270269/leading-10-countries-in-worldwide-beer-
production/
Tadejko, P. (2015). Application of Internet of Things in logistics–current challenges. Ekonomia i
Zarządzanie, 7.
Tantalo, C., & Priem, R. L. (2016). Value creation through stakeholder synergy. Strategic
Management Journal, 37(2), 314-329.
Unctad.org. (2017). Retrieved 30 November 2019, from https://unctad.org › Presentation ›
DSmith_SWIL_JAMWorkshop_p09_en
Unctad.org. (2019). Retrieved 30 November 2019, from
https://unctad.org/en/Pages/DTL/TTL/Legal/Climate-Change-and-Maritime-
Transport.aspx
Unctad.org. (2019). Retrieved 6 December 2019, from
https://unctad.org/en/PublicationsLibrary/rmt2018_en.pdf
Vaidya, K., & Campbell, J. (2016). Multidisciplinary approach to defining public e-procurement
and evaluating its impact on procurement efficiency. Information Systems
Frontiers, 18(2), 333-348.
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
22SUPPLY CHAIN MANAGEMENT
Document Page
23SUPPLY CHAIN MANAGEMENT
Bibliography:
Amarando, M., Assenov, I., & Visuthismajarn, P. (2019). Sustainable wine tourism and
vineyards’ environmental consciousness in Thailand.
Jis.gov.jm. 2019. Retrieved 6 October 2019, from https://jis.gov.jm/alcohol-remains-used-drug-
jamaica/
chevron_up_icon
1 out of 24
circle_padding
hide_on_mobile
zoom_out_icon
[object Object]