Drinks supply chains must be fully integrated from plantation to glass, to optimise sales, service and product cost.
An understanding of long / short crop intakes or contracts is essential: it can ensure supply and optimise profit levels.
The ability to manage product and process traceability and sustainability back to the point of raw materials origin is increasingly important for all companies, regardless of their position in the market.
Supply chains must be adaptable in terms of quality and volume and have mechanisms in place to support shortages or trade off excess. Full awareness of the expected yield of the crop being grown should inform longer-term planning and procurement decisions, aimed at maintaining market stability.
Achieving close relationships with growers is a challenge: maintaining their loyalty whilst remaining passionate about quality and price, is key to managing risk.
Traceability of all food products is demanded by customers and market legislation alike, requiring producers to be able to trace each constituent part back to its source and each conversion & treatment process in between.
Old World AoC agricultural policies are detrimental to winemakers, driving expense and complexity into their product. In an environment where the consumer buys increasingly by varietal and not origin, Old World loses out to New World on price and therefore market share.
Failure to manage the ethical aspects of agricultural supply chains, such as water usage, is potentially harmful to the consumer-facing brand. Procurement and agricultural departments must ensure that this aspect is as high up their agenda as cost management.
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