From California to New Jersey, North America produces some of the best wines in the world with popularity increasing year-over-year. Americans now consume the most wine in the world and consumption is forecasted to increase by 2 percent between 2015 and 20191. As the consumption of wine and popularity increases, the supply chain to move wine to consumers all over the world has become increasingly important. From transportation to distribution, partnering with the right 3PL to deliver and warehouse this popular beverage is key.
Leveraging Technology in Transit
The most exclusive and high-cost wines are often made in small quantities so any spoiled shipment can quickly become costly2. Shippers have a variety of options for transportation of wine. Intermodal temperature-controlled containers can provide an environmentally-friendly mechanism for transit across North America. Technology continues to advance in the rail containers, providing remote temperature monitoring, allowing shippers to see real-time numbers as the product moves through transit3. Intermodal can also provide worry-free transit with remote door opening notifications.
A dedicated fleet can also securely move shipments across North America. Similar to intermodal, temperature-controlled trailers can provide remote monitoring and notification for temperature adjustments. A global logistics provider can also assist in moving wine from popular producers around the world with the technology to provide order visibility and management.
Choosing the Right Warehousing
Warehousing and storage also play a large part in the supply chain for wine. Temperature-controlled environments may be needed and utilizing technology such as a warehouse management system can simplify the process, providing inventory visibility and simplifying the product movement process4. A supply chain solutions provider with operations across North America and a global reach can provide wine makers the ability to keep shelves stocked.
Flex space provides shippers the ability to fluctuate with the most popular consumption seasons and ensure capacity. A 3PL with a full suite of supply chain solutions can also provide value-added services such as customization and packaging, simplifying the process with a single-source provider. A warehousing provider that can also offer services such as labeling or packaging can find efficiencies and potentially get products to stores faster.
Managing regulations placed on a product like wine can become a daunting task for a shipper. For example, the Food Safety Modernization Act (FSMA) will go into effect in 2017, requiring increased standards on the shipping of products meant for consumption. The guidelines require increased documentation and training for those moving freight in order to reduce the chances for food-borne illnesses5.
A dedicated fleet provider can also manage regulations around hours of service, guidance put in place by the Federal Motor Carrier Safety Administration (FMCSA) to limit the number of hours a driver can work consecutively. FMCSA also put an electronic logging mandate into place in 2016, prohibiting the use of paper logs by commercial truck drivers6. Borders and customs regulations can also impact global shipping; however, a 3PL with an understanding of regulations impacting the industry can manage these guidelines to keep products moving.
As wine continues to increase in popularity and the consumption in the U.S. is projected to grow, utilizing a supply chain solutions provider with end-to-end capabilities can simplify the process of taking grapes from vines to glasses.