One of the most demanded products from an average home or a social event/gathering is wine. The populace derives so much pleasure in consuming this good as it portrays class and wealth. The price of wine is, as a result of the quality you desire. Wine is usually more preferable to local gin; hence, the great demand for the products. Different countries employ legal appellations, designed to define styles and qualities of wine. However, the product is very fragile and requires expertise to handle.
A wholesale wine distribution center is a location that has experienced employees to carry out the purchase, storing, transporting, and distribution of wine products to retailers or convenience stores. They help manufacturers make their wines move from the winery to the local wine shop or favorite restaurant. The distribution of budget wines for general consumption, and the vintage wines, involves so much of operational challenges.
With the increase in consumption of wine, there is more complexity for wine distributors, some of their challenges includes:
Tracking Wine Rotations (Lot Control)
There is usually a batch number or lot that comes with the wine shipments received from the supplier. It is called rotation; every rotation always has a reference number with dates that include ‘best by’ and ‘not before.’ Every distributor has the challenge to ensure that stock is issued to customers’ dates. Wine is perishable and requires a sound inventory system, that can prevent waste and ensure detailed information and wine rotation.
Managing Customer Reserves
The availability of wine is usually based on supplier restriction, which means a wine wholesale distribution center will stock a limited amount of a specific wine and will have to be shared among various customers. This system works very well with customers’ preference, which allows a set quantity to be drawn down based on firm orders. The restriction placed by suppliers has left the wholesalers with no option than reserve wines that their customers have ordered for, irrespective of the quality.
Pricing Flexibility
It is important for every wholesale wine distribution companies to be creative on pricing policy to maintain their leading position. This must reflect on their quantity break pricing and aggregate pricing. The wine industry demands innovative promos and pricing that most accounting systems can’t handle. Flexibility requires extended pricing mechanisms to be very effective at moving goods.
Examples of wholesale distribution centers are:
- Martinetti Cos: They are known distributors of wines in England, with 1,200 employees and distributing across 22 states.
- Empire Merchants: Their services are usually to restaurants, bars, nightclubs, and hotels. It is presently ranked 9th among distribution centers in the united states.
- The Wine Bow Group: This center represents established family-owned wineries and distilleries. It is one of the largest fine wine importers and has also developed a book of wines that they sell.
The wholesale wine distribution center is responsible for the fast spread of wine across the world. They also perform storage and transportation facilities for retailers and customers.