Absolut Vodka Case Study
About The Absolut Company Absolut Vodka is the world’s biggest locally produced vodka, fully based on Swedish winter wheat. Since the beginning of 1879, it has been manufactured in the local town of Åhus in Sweden. As 99% of the production is exported, it is likewise Sweden’s only largest food & beverage exports, with 75% shipping from the trivial harbor of Åhus. Due to its climate neutral production, the Absolut Company’s distillery in Åhus is also one of the world’s supreme climate efficient distilleries. This puts a lot of pressure on the supply chain; there is little or no room for blunders and everything needs to run efficiently, not least in manufacturing. Strategic supply chain configuration in Absolut Vodka So as to give the first-class quality products, all the raw materials are sourced from local suppliers, and manufactured in the plant in Sweden, whereas the final produces are sold all around the world. Therefore, the strategic supply chain configuration of Absolut Vodka is Local Sourcing – Local Manufacturing – Global Distribution. Supply chain process in Absolut Vodka Local Sourcing : Sourcing is preferred to be 100% local by utilizing the hardy wheat grains and water as the main ingredients of the very same region. Åhus delivers the distillery with the raw materials to produce the millions of bottles of Absolut Vodka traded …show more content…
A key factor was Optilon’s capacity to coordinate best-of-breed solutions for production planning, demand forecasting, inventory optimization, and replenishment into a consistent procedure. Alongside this, a key model for another method for working was the ability to automate business processes. Likewise, The Absolut Company had clear targets with respect to service levels towards its parent company. Optilon proposed an answer that can ensure product availability according to targets, with negligible investments in finished
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