CHAPTER 10 CASE STUDY: BUDNET
By
Tori Santos
BUDNET

Information is entered into BudNet nightly from
several thousand beer distributors and sales
representatives
1.
2.
3.
4.
5.
Sales reps. Collect new orders and rack competitors’
marketing efforts on PDAs and laptops.
Distributors compile information and transmit it
daily to Anheuser corporate headquarters.
Anheuser brand managers analyze the information
and make decisions for distributors
Distributors log on to BudNet to get the latest
intelligence.
Sales representatives rearrange displays and rotate
stock based on the recommendations.
BUDNET
Useful in the constantly changing market
 Deadly accurate science out of determining what
beer lovers are buying and when, where, and why
 Adds efficiency to the to the beer supply chain
 Changing the dynamics of the industry

DESCRIBE HOW AN SCM SYSTEM CAN HELP A
DISTRIBUTOR SUCH AS ANHEUSER-BUSCH MAKE ITS
SUPPLY CHAIN MORE EFFECTIVE AND EFFICIENT.
Sales representatives know exactly how many
Anheuser-Busch products need to be delivered to
each store
 Improve ways for Anheuser-Busch to find the
raw components they need to make their product,
manufacture it, and deliver it to customers

SCM IS EXPERIENCING EXPLOSIVE GROWTH. EXPLAIN
WHY THIS STATEMENT IS TRUE USING BUDNET AS AN
EXAMPLE.
Technology advances have significantly improved
the forecasting and business operations
 BudNet allows for almost immediate access to
information of the sale of their products
 Each time a sales rep records information on a
competitors products/store layout it is used to
change marketing strategies, design promotions,
and as an early radar that detects where rivals
might have an edge.

EVALUATE BUDNET’S EFFECT ON EACH OF THE FIVE
FACTORS THAT ARE DRIVING SCM SUCCESS.

Make the sale to suppliers


Wean employees off traditional business
practicese


Anheuser-Busch is on board with its suppliers and
they are fully aware of the success of BudNet
The ease of use of BudNet’s hand held pdas and
laptops made the switch much easier for the
employees
Ensure the SCM system supports the
organizational goals

BudNet helps to keep Anheuser-Busch on top by
logging competitor information as well as what
worked and didn’t work for the Anheuser-Busch
products
EVALUATE BUDNET’S EFFECT ON EACH OF THE FIVE
FACTORS THAT ARE DRIVING SCM SUCCESS.

Deploy in incremental phases and measure and
communicate success


BudNet is a well established SCM system and must
have been implemented in phases in order be as
successful as it is today
Be future oriented

BudNet has not just added efficiency into the beer
supply chain, but it is changing the dynamics of the
industry
CURRENT INFORMATION
Anheuser-Busch purchased by InBev in the fall of
2008
 InBev focused on cost-cutting and profit margins
 Let go about 1,400 employees in the U.S. and 415
contractor positions
 Changed contracts with suppliers
 Lower profits than expected

SOURCES
Wall Street Journal “UneasesBrewing at
Anheuser as new Owners Slash Costs”April 29,
2009
 Wall Street Journal “Corporate news: Anheuser
to Cut Back as its Profit Tumbles” March 6, 2009
