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Case Study for Beverage World Magazine
Heineken USA - Satellite Logistics Group: Reverse Logistics Solution for Cooperage Returns
Heineken USA is the American operating company for the Dutch brewer Heineken International based in the Netherlands and the largest European importer of beer into the U.S. A good portion of their sales volume is in kegs with sizes ranging from 30 liter to 58 liter spread across all 50 states. As their sales continue to outpace the imported market trends, they realized that improvement opportunities existed in their traditional methods of returning cooperage to the brewery for future production needs.
Traditionally, distributors make direct returns from their warehouses, which leads to customer service issues. Distributors didn't appreciate having to store kegs until full export loads could be accumulated. They didn't like waiting months to receive keg deposit credits or the administrative effort required to generate the export of empty kegs. To solve these issues and improve their overall customer satisfaction, they turned to the Satellite Logistics Group companies.
Satellite Logistics Group, Inc. had designed a reverse consolidation program that resolves the negatives associated with returning cooperage for all levels of the supply chain. Their Kegspediter® System uses nine strategically located consolidation centers around the country. They manage over 70 different brands from various importers and domestic producers at more than 800 wholesale distributors.
Rod Italianer, VP of Operations and Finance says, "The benefits of Kegspediter® are tremendous and favorably impact our operation and our distributors. The expedience used in collection of the cooperage, the short time for distributors to receive deposit credits and the reduction of administrative effort are proven winners for our customers. The brewery is pleased with the reduction of four months from the cycle time and that less cooperage is required to support our sales effort. In addition, our costs are better controlled by consistent maximization of export containers."
Gregory Sommer, Transportation Planning Manager adds, "Just as important, the Kegspediter® System has allowed us to control our own keg float which is critical to our product quality initiative". Sommer further states, "The return of cooperage is no longer an issue with us or our customer base - the negatives have been eliminated."
As a 3PL, the Satellite Logistics Group of companies can offer you the same benefits whether your needs are with reverse logistics, distribution, order fulfillment, or transportation. For more information, visit them at www.slg.com or call 1-800-485-4470.
Case Study for Kegspediter® Keg Management Program
Kegspediter® Keg Management Program
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