Global College Malta

Module Code: BABM05

Module Name: Logistics & Supply Chain Management
Lecturer: Andrew Saliba

Group Presentation
Student Name: Thonusha Pathirannahalage
Student Names: Hassib Saleh
Student ID: (TPAT01BAMGT23JAN)
Student ID: (HSAL01BAMGT23JAN)

Deadline Date: 8May 2024

12 Slide
 INTRODUCTION
FARSON BREWING COMPANY OVERVIEW

FARSON BREWING COMPANY IS A DISTINGUISHED NAME IN THE

MALTESE BREWING INDUSTRY, SINCE IT WAS THE FIRST BREWERY TO BE
ESTABLISHED IN THE ISLAND IN 1928 BY LUIGI FARRUGIA

SIMONDS FARSONS CISK PLC EXPECTS ITS TOTAL REVENUE TO RISE

TO €129.1 MILLION IN 2023, SIMONDS FARSONS CISK HAS 565 EMPLOYEES

OVERVIEW OF FARSON BREWING'S DEPARTMENTS AND OPERATIONS.

EMPHASIS ON MAINTAINING EXCELLENCE AND HARMONY AMONG
DEPARTMENTS.
 FARSON’S SUPPLY CHAIN AND PROCUREMENT
• EXPLANATION OF SUPPLY CHAIN AND PURCHASING THEORIES USED BY FARSON BREWING.
• (JIT) JUST-IN-TIME INVENTORY: AIMS TO MINIMIZE INVENTORY HOLDING COSTS BY SYNCHRONIZING PRODUCTION WITH
CUSTOMER DEMAND

• (SRM) SUPPLIER RELATIONSHIP MANAGEMENT BUILDING STRONG, COLLABORATIVE RELATIONSHIPS WITH SUPPLIERS
FOR LONG TERM VALUE

• (TQM) TOTAL QUALITY MANAGEMENT EMPHASIZES CONTINUOUS IMPROVEMENT AND QUALITY ASSURANCE THROUGHOUT
THE SUPPLY CHAIN.

• (EOQ) ECONOMIC ORDER QUANTITY DETERMINE THE MOST COST-EFFECTIVE LOT SIZES FOR RAW MATERIALS AND
PACKAGING MATERIALS.

• SUPPLY CHAIN RISK MANAGEMENT TO ADDRESS POTENTIAL DISRUPTIONS SUCH AS SUPPLIER DELAYS, TRANSPORTATION
BOTTLENECKS, OR RAW MATERIAL QUALITY ISSUES.

• CATEGORY MANAGEMENT INVOLVES STRATEGIC MANAGEMENT OF PRODUCT CATEGORIES TO MAXIMIZE VALUE AND
PROFITABILITY.

• STRATEGIC SOURCING. STRATEGIC SOURCING PRACTICES TO IDENTIFY OPTIMAL SOURCES OF SUPPLY, NEGOTIATE CONTRACTS,
 PACKAGING AND DISTRIBUTION
• DISTRIBUTION CHANNELS INCLUDING:

• RETAIL OUTLETS - SUPERMARKETS, CONVENIENCE STORES, AND LIQUOR STORES

• BARS/RESTAURANTS - DISTRIBUTE ITS BEVERAGES TO BARS, PUBS, AND RESTAURANTS FOR ON PREMISE
CONSUMPTION.

• EXPORT MARKETS – EXPORT TO INTERNATIONAL MARKETS, REQUIRING ADDITIONAL LOGISTICS AND

DISTRIBUTION CHANNELS

• AND DIRECT-TO-CONSUMER - WITH THE RISE OF E-COMMERCE THROUGH ITS WEBSITE OR ONLINE
PLATFORMS

• FOCUS ON METICULOUS MANAGEMENT OF OPERATIONS TO ENSURE CONSISTENCY,

QUALITY, AND AVAILABILITY OF PRODUCTS.
 FARSON BREWING'S SUPPLIERS

• CLASSIFICATION OF SUPPLIERS INTO LOCAL AND INTERNATIONAL

CATEGORIES.
• POTENTIAL SUPPLIERS INCLUDING, HOP, FARMS, BARLEY GROWERS
• WATER SUPPLIERS, PACKAGING SUPPLIERS, YEAST SUPPLIERS, AND SPECIALTY
INGREDIENT SUPPLIERS

FARSON BREWING'S SUCCESS LIES IN ITS METICULOUS MANAGEMENT OF THE

BREWING PROCESS, FROM SOURCING QUALITY RAW MATERIALS TO DISTRIBUTING
ITS PRODUCTS. THROUGH CAREFUL PROCUREMENT OF HOPS, BARLEY, WATER,
YEAST, AND OTHER ADJUNCTS, FOLLOWED BY A PRECISE BREWING AND
PRODUCTION PROCESS, FARSON ENSURES THE CONSISTENCY AND QUALITY OF ITS
BEVERAGES. ITS COMPREHENSIVE DISTRIBUTION STRATEGY SPANS RETAIL
OUTLETS, BARS AND RESTAURANTS, EXPORT MARKETS, AND DIRECT-TO-CONSUMER
 DISTRIBUTORS AND RETAIL PARTNERS

• FARSON BREWING WORKS WITH A NETWORK OF DISTRIBUTORS TO ENSURE THEIR

PRODUCTS REACH CONSUMERS EFFECTIVELY. THESE DISTRIBUTORS OPERATE
LOCALLY OR INTERNATIONALLY, DEPENDING ON FARSON BREWING'S MARKET REACH
AND DISTRIBUTION STRATEGY.

• EXPLANATION OF DISTRIBUTORS' ROLE IN REACHING CONSUMERS LOCALLY AND

INTERNATIONALLY.

• OVERVIEW OF RETAIL PARTNERS INCLUDING SUPERMARKETS, CONVENIENCE STORES,

LIQUOR STORES, BARS/RESTAURANTS, AND HOTEL BARS/RESORTS
 WAREHOUSING IN FARSON BREWING

• CRUCIAL ROLE IN SUPPLY CHAIN MANAGEMENT:

WAREHOUSING PLAYS A CRUCIAL ROLE IN FARSON BREWING'S SUPPLY CHAIN MANAGEMENT, FACILITATING THE
STORAGE, HANDLING, AND DISTRIBUTION OF RAW MATERIALS, PACKAGING MATERIALS, AND FINISHED PRODUCTS.
HERE'S AN OVERVIEW OF WAREHOUSING IN FARSON BREWING:

• FACILITATES STORAGE, HANDLING, AND DISTRIBUTION :

FARSON BREWING'S WAREHOUSE SERVES AS A STORAGE FACILITY FOR RAW MATERIALS SUCH AS HOPS, BARLEY,
WATER, AND YEAST, WHICH ARE ESSENTIAL INGREDIENTS IN THE BREWING PROCESS. THESE MATERIALS ARE
CAREFULLY STORED IN CONTROLLED ENVIRONMENTS TO MAINTAIN FRESHNESS AND QUALITY
 FUNCTIONS OF WAREHOUSING
KEY FUNCTIONS

• STORAGE OF RAW MATERIALS :SERVES AS A STORAGE FACILITY FOR RAW MATERIALS WHICH ARE
ESSENTIAL INGREDIENTS IN THE BREWING PROCESS. THESE MATERIALS ARE CAREFULLY STORED IN CONTROLLED
ENVIRONMENTS TO MAINTAIN FRESHNESS AND QUALITY

• INVENTORY MANAGEMENT: INVENTORY CONTROL SYSTEMS ARE UTILIZED TO MONITOR STOCK LEVELS,
TRACK MOVEMENTS, AND OPTIMIZE INVENTORY TURNOVER

• FINISHED PRODUCT STORAGE: ARE STORED IN THE WAREHOUSE BEFORE DISTRIBUTION TO CUSTOMERS
• ORDER FULFILLMENT: EFFICIENT WAREHOUSE OPERATIONS ENSURE TIMELY DELIVERY AND
ACCURATE ORDER FULFILLMENT TO MEET CUSTOMER DEMAND.
• QUALITY CONTROL: QUALITY CONTROL MEASURES ARE IMPLEMENTED WITHIN THE
WAREHOUSE TO ENSURE PRODUCT INTEGRITY AND COMPLIANCE WITH QUALITY STANDARDS
 OPERATIONAL CONSIDERATIONS
OPERATIONAL EFFICIENCY
• SAFETY AND SECURITY MEASURES: THE WAREHOUSE ADHERES TO SAFETY AND SECURITY
PROTOCOLS TO PROTECT EMPLOYEES AND PRODUCTS. MEASURES SUCH AS FIRE PREVENTION SYSTEMS
AND SECURITY CAMERAS ARE TAKEN TO PROTECT THE WAREHOUSE AND ITS CONTENTS.

• EFFICIENCY AND OPTIMIZATION: THIS INCLUDES IMPLEMENTING WAREHOUSE MANAGEMENT

SYSTEMS (WMS), ADOPTING LEAN PRINCIPLES, AND OPTIMIZING LAYOUT AND STORAGE CONFIGURATIONS
TO MAXIMIZE SPACE UTILIZATION AND MINIMIZE HANDLING TIMES.

• SUSTAINABILITY INITIATIVES: THE WAREHOUSE MAY ALSO BE INVOLVED IN SUSTAINABILITY

INITIATIVES, SUCH AS RECYCLING AND WASTE REDUCTION PROGRAMS, ENERGY-EFFICIENT LIGHTING AND
HVAC SYSTEMS, AND ECO-FRIENDLY PACKAGING MATERIALS
 STRATEGIC LOCATION
STRATEGIC WAREHOUSING
• PROXIMITY TO PRODUCTION FACILITIES:

• SUPPORT FOR PRODUCTION AND DISTRIBUTION:

• POTENTIAL FOR EXPANSION INTO EXPORT MARKETS:

FARSON BREWING TO HAVE WAREHOUSES STRATEGICALLY LOCATED NEAR THEIR PRODUCTION

FACILITIES, THESE WAREHOUSES WOULD SERVE AS STORAGE AND DISTRIBUTION CENTERS FOR RAW
MATERIALS, PACKAGING MATERIALS, AND FINISHED PRODUCTS, SUPPORTING THE BREWERY'S
PRODUCTION AND DISTRIBUTION ACTIVITIES ACROSS THE COUNTRY AND POTENTIALLY FOR EXPORT
MARKETS AS WELL.
 CONCLUSION
• FARSON BREWING'S SUPPLY CHAIN MANAGEMENT IS VITAL FOR ITS SUCCESS AND SUSTAINABILITY.
• EFFECTIVE PRACTICES OPTIMIZE OPERATIONS, ENHANCE PRODUCT QUALITY, AND MEET CUSTOMER DEMAND EFFICIENTLY.
• CHALLENGES INCLUDE SEASONAL DEMAND FLUCTUATIONS, RELIANCE ON IMPORTED MATERIALS, AND ENSURING PRODUCT
INTEGRITY DURING TRANSPORTATION.
• STRATEGIES:
• DIVERSIFY SUPPLIER BASE
• IMPROVE SUPPLY CHAIN VISIBILITY
• IMPLEMENT RISK MANAGEMENT STRATEGIES
• INVEST IN SUSTAINABILITY, INNOVATION, AND MARKET EXPANSION
• OUTCOME:
• STRENGTHEN COMPETITIVE POSITION
• MEET CHANGING CONSUMER NEEDS
• DRIVE GROWTH AND MAINTAIN LEADERSHIP IN MALTA AND BEYOND
• ACTION POINT:
• ESTABLISH STRATEGICALLY LOCATED WAREHOUSES NEAR PRODUCTION FACILITIES.
• SERVE AS STORAGE AND DISTRIBUTION CENTERS FOR RAW MATERIALS, PACKAGING, AND FINISHED PRODUCTS.
• SUPPORT PRODUCTION, DISTRIBUTION ACROSS THE COUNTRY, AND POTENTIAL EXPORT MARKETS