Optimization and risk management are the major challenges in wine logistics and supply. Finding the balance between cost reduction and inventory optimization is no easy feat. Every business wants to gain competitive advantage and reduce operating costs. You also need to protect your business from inevitable disruptions in the supply chain. Here are the key challenges and recommendations for potential wine and spirits investors.

Government Regulations

Keeping current with the latest government regulations can be a daunting task for wine vendors. However, non-compliance with shipping regulations can delay order flow. You may also incur additional fines and penalties if your container gets stuck in the port terminal for non-compliance. The rules can be unclear especially when the government introduces new regulations without stakeholder involvement.

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Product Safety

Standard processes and procedures can help mitigate risks in a supply chain strategy. Appropriate packaging has become fundamental to bottled wine shipment. Container selection is a critical component of bulk wine shipment. Container inspection and packaging ensure that bulk wine suppliers comply with shipping regulations. It is vital to have a comprehensive cargo transport insurance policy if you deal with a high-value product such as wine. It helps you to reduce overall exposure when a crisis occurs.

Temperature Risk

Wine and spirits are sensitive to temperature changes. Extreme heat and humidity during transit can affect bulk liquid transport. As a result, thermal changes can affect the packaging and labeling of bottled wines. Geographical factors can help wine vendors to determine the level of risk to take. Wine vendors can opt for dry containers or incur an additional cost of refrigerated containers. A predictive risk management tool can help wine, beer, and spirits vendors to carry out temperature risk assessment. Shippers can use historical humidity and temperature data to select cargo containers. A wine vendor can also fit dry containers with a protective liner foil system to reduce the effects of thermal fluctuations. These systems are designed to help alcoholic beverage vendors to regulate temperatures and humidity within a container. It allows vendors to strike a balance between risk mitigation and service optimization. Compared with traditional refrigerated shipping containers, protective liner foil systems are cost savings.

Adaptation

Developing in-house logistics platforms can be cost savings. You can’t scale such platforms in the case of acquisition or change in industry regulations. Outsourcing those services from an experienced and well-equipped IT logistics partner can impact your business performance. A custom order management system for beverage logistics can enable wine vendors to streamline their processes. It provides alcoholic beverage vendors with real-time visibility to order flows. It also allows them to keep track of their automated daily reports and data analytics. Conversely, large-scale global brands owners use advance inventory management systems to develop collaborative supply chain solutions. They also use full-scale forecasting and stock control management solutions for risk mitigation and service optimization.

In short, wine vendors need safety measures and smart strategies to stay efficient and deliver results. Wine logistics providers can now use predictive analytics technology to connect with wine shippers. That enables them to supply customized products across the globe.