(1) Grape Grower
The grape grower is responsible for the production, harvest and delivery of the grapes as well as record keeping of appropriate information about what is received and what is sent. Vineyard treatment details should be available on request.
(2) Wine Producer
The wine producer is responsible for receiving the grapes and for the production, manufacture and/or blending of wine products.
(3) Bulk Distributor
The bulk distributor is responsible for receipt, storage, dispatch, processing, sampling and analysis of bulk wine as well as second keeping of appropriate information about what is received and what is dispatched.
(4) Transit Cellar
The transit cellar is responsible for the receipt, storage, dispatch, processing, sampling and analysis of bulk wine as well as record keeping of appropriate information about what is received and what is dispatched. The transit cellar can be part of the filler/packer company or can be outsourced. What differentiates the bulk distributor from the transit cellar is that the former has a commercial role (he sends invoices) whereas the later has only a role of transit with no commercial and no invoking goal.
(5) Filler / Packer
The filler/packer is responsible for the receipt, storage, processing, sampling, analysis, filling, packing and dispatch of finished goods as well as record keeping of appropriate information about what is received and what is dispatched.
(6) Distribution
The finished goods distributor is responsible for the receipt, storage, inventory management and dispatch of finished goods as well as re-packing and re-labelling as required, quarantining products, and record keeping of appropriate information about what is received and what is despatched.
(7) Retail
The retailer receives pallets and cartons from the finished goods distributor and picks and dispatches goods to the retails stores.
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ReplyDeleteSuper helpful post Seungyeop in terms of understanding the various steps involved with how wines go from harvesting to the retail stores!
ReplyDeleteI’m hugely interested in this as I am curious how supply chain awareness (or the lack thereof in certain markets) can hugely impact the competitiveness of a country’s wine. For example, new world wines such as South Africa or Romania may suffer or fail to become truly competitive because of their lack of supply chain efficiency. I’d be curious to see the extent to which top wine producers around the world have taken steps to become more vertically integrated. As we read in the Robert Mondavi case, it was of huge importance for Mondavi to keep the aging and bottling in-house to give him better wine and more control over the process (and profits). The challenge for many New World wine producers will not be how to best grow grapes and make wines, but rather how to best ensure that the distribution, logistics, packaging, and sales of wine is most effective. Better supply chain management will ensure that these producers can continue to be perform well in the global market.
Thanks Seungyeop! This is useful. We've talked a bit about the hour-glass distribution system in the United States. It will be interesting to further discuss opportunities for entrepreneurs to disrupt this distribution system.
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