The area of logistics management is today seen as a powerful tool in reducing cost, improving customer satisfaction and thereby increasing sales of a business. Therefore, as a critical business function, logistics has been subjected to extensive research that has led to the development of several theories, processes and strategies for efficient logistics systems.

The purpose of this paper is to study strategy in the context of logistics for the brewing industry in the UK. The paper begins with discussing logistics and supply chain as well as the brewery industry in the UK. The brewer chosen for this paper is Greene Kings that produces different brands of beer besides owning and running more than 750 pubs across the UK and exporting its products as well.

The discussion then moves to the understanding of Greene Kings’ strategy through generic models like Ansoff and Porter’s 5 forces model. This is followed by commentary on the plausible tools and strategic logistical models that Greene Kings may implement for more efficient systems.

The problems that are faced in implementing a new strategy are discussed next along with suggestions as to overcoming the same. Finally, the trends and developments in logistics have been included with a discussion on which tools may be useful for Greene Kings.

INTRODUCTION

The importance of having a strong logistics strategy is being recognized by organizations in the light of the changing dynamics of the business environment. The growth of e-commerce, online transactions and globalization have led to an increase in the intensity of competition, which makes it imperative for every business to have a clear and comprehensive strategy for every operation and functional unit so as to be able to compete in the present dynamic business environment.

A sound and comprehensive strategy around logistics management and supply chain is also crucial for pre-determining the demands of the customers (Towers & John, 2003). In the intensely-competitive market, breweries have to keep abreast of the demands of the consumers. Towers and John (2003) term these varying demands as the “fickle requirements” (pp. 592) of consumers, through the importance of these requirements is paramount to retain and increase the customer-base. Moreover, as the same authors have further expounded, the inefficient management of customer demand would have effect on the residual stock, cash flow and other business functions.

Logistics are a core process of business operations and plays a crucial role in cost management of the business products, and also for helping the business achieve the demands of a demanding beer-consumption market. Logistics includes storage, warehousing, materials handling, packaging, inventory, transport and information and control.