Configuration of beverage supply chains for reusable glass bottles: a case study at HEINEKEN

Abstract

Recent legislative developments, most notably the new Packaging and Packaging Waste Regulation (PPWR), state that by 2030 a minimum of 10% of beverages must be sold in reusable packaging formats, increasing to 40% by 2040. This makes a transition unavoidable, and requiring HEINEKEN to further increase the share of their volume sold in reusable packaging, to provide for the final distributors. Reusable glass bottles (RGB) are seen as the most promising material for this transition. Through a Design Science Research approach, this study developed two complementary artifacts. First, a conceptual model mapping eight strategic decision dimensions and their parameters, structuring the full configuration space for RGB supply chains. Second, a financial model translating this framework into a practical evaluation tool to evaluate configurations on performance and trade-offs financially, environmentally and operationally, and that quantifies outcomes such as cost per hectoliter, Net Present Value (NPV), Discounted Payback Period (DPP), profit per hectoliter, and CO2 emissions. The demonstration and evaluation confirmed that the models behave logically and align with theoretical expectations. Under benchmark conditions and at 500.000HL, the In-house configuration came out as most promising, with Hybrid close behind. Outsourcing can be the more attractive option at lower volumes, while at higher volumes the advantage shifts to In-house and Hybrid. Pooling consistently performed weakest, but could at lower volumes and lower fees be viable and benefits from the lowest operational effort. The impact analysis identified production strategy, crate strategy, and sorting \& washing as the most critical levers influencing performance and sub-configuration tests also showed that choices inside a strategy can have impact. It can be concluded that there is no single supply chain design that would always operate best. Outcomes depend strongly on volume and market-specific conditions. This research provides a structured configuration framework and evaluation model to support the transition towards reusable glass bottle supply chains.