News Stories to Help Illustrate Your Exam Answers:


Supply chain differentiation at Diageo

CIPS 7 April 2014

The design of supply chains to ‘fit’ the needs of products, markets and other contextual factors is one of the cornerstones of Strategic Supply Chain Management – and exam case studies. At a recent (April 2014) Logistics and Supply Chain Conference in London, global beverage company Diageo – responsible for brands including Guinness, Johnnie Walker, Gordon’s gin and Hennessy cognac – told delegates how it has developed three different supply chain strategies to meet the needs of its different product groups. 

The design of supply chains to ‘fit’ the needs of products, markets and other contextual factors is one of the cornerstones of Strategic Supply Chain Management – and exam case studies. At a recent (April 2014) Logistics and Supply Chain Conference in London, global beverage company Diageo – responsible for brands including Guinness, Johnnie Walker, Gordon’s gin and Hennessy cognac – told delegates how it has developed three different supply chain strategies to meet the needs of its different product groups. ‘For high volume products such as Smirnoff vodka, it had an “Efficient” supply chain geared to producing and distributing large volumes. For lower volume products, such as luxury brands, there was a “Responsive” supply chain which made use of finishing centres to tailor products to destination markets. The third supply chain was “Agile” – designed for innovative products where demand might be volatile.’

You might like to think how this strategic mix conforms to the supply chain positioning and other strategic ‘matrix’ models you have studied – as well as to ideas such as ‘lean’, ‘agile’ and ‘hybrid’… You might also like to think about the implications of differentiated supply chain strategy for organisational structure: Diageo found that it had to change from a ‘global’ organisation to one where ‘markets take responsibility for their indigenous supply chains’.

http://www.supplychainstandard.com/Articles/4912/One+size+does+not+fit
+all,+warns+Diageo+supply+chain.html

See also http://www.supplymanagement.com/news/2013/diageo-boosts-emerging-markets-with-supply-chain-restructure – and links to other Diageo articles,

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