Improving HEINEKEN’s export transport modality choices

Abstract

This research focuses on improving the transport modality decision-making process of HEINEKEN NV. More specifically, this research focuses on optimizing the transport from HEINEKEN Nederland Supply to European markets from the perspective of HEINEKEN NV. A large part of the export transport from HEINEKEN Nederland Supply to European markets is organised by truck transport, while often intermodal transport is possible, more environmental friendly and economically feasible. This observation was the incentive to start this research. Investigating the current transport situation led to the following problem statement: The current mode choice in transport from HNS to markets within Europe is made with a strong focus on costs. Other criteria are evaluated during the decision=making process, but only on basis of experience and with limited information about their consequences in the overall distribution process. During this research many affected and involved stakeholders were interviewed. These interviews provided detailed information about the current decision-making process, logistical consequences of modality choices and important transport-related criteria. The detailed description of the current transport-decision making process has been analysed and a preferred future situation was proposed that is in line with the objective of this research: Improve the decision=making process regarding export transport from HNS to European markets. Ensuring continuity and transparency in the decision=making process by the establishment of a quantified and presentable comparison between various transport modality options and their logistical consequences in the warehouses of HNS. The preferred future situation includes all stakeholders of the current situation. The decision-making is performed by the same persons. However, the decision makers are supported by a developed decision-support tool. This decision-support tool has been developed for HEINEKEN in Excel Visual Basic. The tool plots the performance of available transport options using a weighted summation multi-criteria analysis. The transport options are compared on three important criteria: costs, CO2 emissions and transit time. These are all quantified criteria. Costs include the costs of transport, but also include logistical consequences at the warehouses of HEINEKEN Nederland Supply. A modality choice can significantly influence the logistical costs, therefore costs are analysed from a broader perspective. CO2 emissions are related to transport modality and transport route. HEINEKEN wants to reduce CO2 emissions and this can be achieved by optimizing transport choices. A low transit time is important to ensure the freshness of the beer. Furthermore, a low transit time is favourable when un-forecasted peaks in consumption cause high demand peaks. The interviewed stakeholders have given their opinion about the importance of these criteria using the Analytic Hierarchy Process. (Saaty, 1987) The weights that apply to the criteria were derived from the input of all stakeholders. With this method a HEINEKEN NV perspective has been approached. The objective of this research was reached through the development of a weighted summation multi-criteria analysis decision support tool. The decision support tool delivers a quick overview of the performance of transport options on important criteria. Hence, opportunities are more easily identified and decisions are based on quantified criteria. In this way continuity is ensured and transparency is obtained.