Exploring how Red Bull gives wings to its Supply Chain

Red Bull, an energy drink brand, is a global leader in its segment having a presence across 167 countries. Recently, Red Bull has experienced strong sales growth in India, Japan, Turkey, Scandinavia, Russia, and Brazil. In these exciting times, Logistics Insider decides to dig into Red Bull’s supply chain to explore how the energy drink is reaching seamlessly in every nook and corner of India. Ronit Verma, National Logistics Manager, Red Bull India in an exclusive interview reveals his supply chain tactics and much more.

Q) Which path-breaking measures have you taken to strengthen the logistics network of Red Bull in India? How do you ensure that the products of the company reach every nook and corner of India?  

Maintaining an efficient and effective supply chain of a business helps a lot in curtailing cost and improving the competitiveness of a product in a market. And competitiveness is increased by quantifying national logistics cost and identifying the mechanisms to reduce the cost.

Computing performance indicators for logistics activities on a regular basis enables measuring operation costs and efficiency levels. These indicators provide information on loopholes which require immediate attention.

Designing the logistics network on the basis of the stock requirement is a key to ensure 100% availability of stocks for sale. In a view of this statement, it is an absolute requirement to have a deep understanding of your stock flows, sales projections, inventory requirements, delivery timelines as well as service levels in order to further plan the networks of logistics requirements.

Here in Red Bull, we ensure to plan our logistics network keeping these key ingredients in consideration during overall network planning and at the same time periodic measures are set for future planning.

Q) According to a research report, Red Bull energy drinks travel to their destination predominately by train and ships. If we believe in this finding, then how does Red Bull give wings to its supply chain?

Red Bull is imported in India through multimodal transportation including sea and road. Planning of a supply chain is dependent on import of goods and it requires a lot of advance planning, accurate sales forecasting, space planning and considering the variation of actual sales which impacts on logistics space or carrying cost.

We ensure to keep all these measures in order to have a predictive analysis which helps in inventory planning. Through this, we support the increasing sales demand. Periodic reviews with key functions, making visible controls and actioning on the required planning helps in overall business need and this is where we say focus, collaboration, responsibility and continuous improvement is driving the success.

To read the full version of the interview, click here.

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