Value Chain Analysis of Beer Industry

Beer Industry comprises of production, distribution, fermentation, bottling, and packing. The brewing of the beer is as old as the human civilization. Today, we’ll discuss the value chain analysis of Beer Industry supply chain analysis; primary and supporting activities in the process of value chain analysis Example Company. They are inbound and outbound logistics, operations, marketing, and customer service; infrastructure, HRM, technology, and procurement as an application of the value chain analysis process.

Raw Material for the Production of Beer

• Yeast
• Hops
• Malt
• Water
• Coffee beans
• Spices
• Sugar

Companies and Brands in the Beer Industry

• Stella Artois
• Coors Light
• Modelo Especial
• Samuel Adams
• Heineken
• Budweiser
• Guinness
• Blue Moon
• Corona

The Value chain analysis of Beer Industry supply chain analysis would analyze the primary and supporting activities in the process of value chain analysis. They’re inbound and outbound logistics, operations, marketing, and services; infrastructure, HRM, technology, and procurement. Here’s the supply chain analysis of Beer Industry value chain analysis company example as follows;

Value Chain Analysis of Beer Industry

Let’s discuss the primary and supporting activities involved in the process of value chain analysis of Beer Industry supply chain analysis. It is an application of value chain analysis based on Porter’s model; some of the key elements and components of value chain analysis are as follows;

Primary Activities of Beer Industry

The primary activities are directly involved in the production of products and goods and adding value to the beer company. Some of the five main primary activities in the value chain analysis of Beer Industry supply chain analysis are as follows;

Inbound Logistics of Beer Industry

I-Sourcing Raw Material

The ingredients and raw materials for the production of beer are easily and readily available in various countries across the world. Beer companies have established a very large network of raw ingredient suppliers and vendors in various countries. They help the company to smoothly perform its operations without any disruptions.

II-Relationship with Suppliers

Beer brands have established a very good and effective relationship with raw ingredient suppliers. In fact, they prefer to partner up and collaborate with large beer brands to ensure a smooth supply of raw ingredients for the beer.

Some of the main challenges to the supplies of beer industry are as follows;

• Drought and shortages of water for the raw material crops
• Limited arable land area for the production of crops
• Increasing demand for beer

Outbound Logistics of Beer Industry

I-Transportation

Beer companies employ and partner up with various transportation and 3rd party logistics service providers for the distribution of products and goods. They move raw ingredients and materials from the authorized and verified suppliers to the production facilities and breweries; warehouses and distribution centers, and then to the retail chain stores and the end consumers.

Operations of Beer Industry

I-Production & Manufacturing

Beer companies have a very large network of breweries and beer production and manufacturing companies. They receive raw ingredients, supplies, and components from the company’s verified suppliers; and run various types of brewery operations for the production of beer. In order to make sure the top quality beer, they have automated various production and brewery operations to achieve efficiency.

II-Packaging & Warehouses

Beer companies have a very large network of warehouses and distribution centers. They receive finished goods and beer from the production facilities and breweries; package the beer in various sizes of bottles, and temporarily store and label them with the right and accurate description.

Marketing & Sales of Beer Industry

I-Marketing & Advertisement

Beer companies run various types of marketing and advertisement campaigns for the promotion of alcoholic drinks and beverages. They employ various media channels to approach various segments of the customer market.

II-Liquor Store

Beer companies and breweries deliver various sizes and packages of beer to the retail chain stores. It allows customers to physically check and read the description of beer before buying it. As a result, it improves the overall customer satisfaction level and they can choose and buy the right products.

Services of Beer Industry

Beer companies offer a wide range of products and services to customers. The variety of products and service portfolio helps the company to promote brand loyalty among customers and improve overall user experience.

Supporting Activities of Beer Industry

Supporting activities are indirectly involved in the production of products and goods and adding value to the beer company. Some of the main supporting activities in the value chain analysis of Beer Industry supply chain analysis are as follows;

Infrastructure of Beer Industry

Beer industry has a very large infrastructure of production and manufacturing facilities, breweries, warehouses and distribution centers, liquor stores, and a transportation network. The large and well-developed infrastructure of the beer companies would help the company to smoothly perform its various operations and timely deliver the finished goods to the end consumers.

HRM of Beer Industry

Beer Industry has employed millions of people at different places in its supply chain network. The human resource management department of the company plays a key role in building a large database of employees, contracting training programs for employees, and developing efficient and effective relationships with various suppliers and distributors.  

Technological Development of Beer Industry

Beer Industry invests a significant amount of capital resources on research and technological development. It allows the company to employ automation technology in its warehouses and distribution centers, data analytics, machine learning, and AI to study market demand and trends.

Procurement of the Beer Industry

Beer companies are highly careful and cautious about ethical sourcing and procurement of raw materials and finished goods to the end consumers. They collaborate with suppliers and farmers to ensure environmental sustainability and compliance with human rights standards.

Conclusion: Beer Industry Value Chain Analysis Example Company | Application of Value Chain Analysis Process |Process of Value Chain Analysis

After an in-depth study of the value chain analysis of Beer Industry; we have realized that Beer is the world’s most popular drink. If you are learning about the Beer Industry value chain analysis example company; then you should keep in mind the abovementioned primary and supporting activities. They’re inbound and outbound logistics; operations, marketing and sales, and services; infrastructure, procurement, HRM, and technological development as an application of the value chain analysis process.