3 P L / R e f r i g e r a t e d L o g i s t i c s Image courtesy of the Robert Mondavi Institute and UC-Davis at www.robertmondaviinstitute.ucdavis.edu.
Wine & Spirits Operations Six Steps Toward Optimizing
Borrowing proven strategies from the grocery sector is a good starting point.
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arehousing and distribution for the wine & spirits industries is more than just moving, storing and distributing products; it requires tight operational tolerances to ensure safe and accurate handling, efficient inventory management, traceability and other compliance issues. We can take some of the ideas set forth by grocery stores to achieve efficiency and profitability. For decades successful supermarkets have implemented scientific principles of psychology to increase retail sales and margins. Retail floor plans and shelf layouts are designed to maximize the amount of consumer time and travel in the store. Strategic product placement helps entice shoppers into purchasing additional items, while an inviting retail environment increases consumer confidence and satisfaction.
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While the goals of wine & spirits logistics may be different, many of them are still the same – and the results of maximizing sales, optimized inventory turnover and streamlined efficiencies still apply.
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Keep best sellers within easy reach
In the warehouse, it is practical to store high-volume, highvelocity items in close proximity to picking and shipping.
• FOOD LOGISTICS
Proper product placement and slotting increases order fulfillment speed and accuracy, decreases picking and travel time, and helps avoid congestion. Use historical sales data and demand forecasts to determine which products should be slotted where, and use appropriate picking technologies to support your strategies. Speaking of inventory management – one story about the lack of inventory control made the news in mid-October when it was suspected that an “insider” took 65 cases of high-dollar, 20-year old bourbon, and a few cases of less-expensive, 13-yearold rye whiskey from a distillery in Kentucky. The retail value of the 200-plus bottles is roughly $26,000, although on the black market, the rare and prized spirits would sell for much more.
BY PAUL LAMAN
The product had been bottled, labeled and packed by case on pallets. The pallets were stored in a secure location behind two sets of locked doors. About 50 employees had access to the stored product. To those of us in the distribution industry, the heartbreaking thing about the heist is that management has no way to find out when the bottles were taken. The stolen cases were taken from the back of pallets, so nothing seemed amiss at a glance. By the time the shortage was discovered, there were no tracks to follow. Investigators believe the cases were removed a few at a time over at least a two-month period. In early December, law enforcement officials offered a $10,000 reward for tips, but still no arrests have been made. Everyone knows how imporwww.foodlogistics.com
12/7/15 10:32 AM