Maximizing efficiency in beverage supply chain logistics
Importing wine and other alcoholic beverages to Russia and other Central Asian markets is complex due to local beverage supply chain regulations.
Hillebrand Gori can help importers and exporters to succeed in those growing markets, providing integrated logistics solutions in our Riga hub. A team of experts will manage the full process, including warehousing, relabeling, de-consolidating and consolidating orders, while managing all customs and duty formalities and processes.
As a result, importers and exporters will increase their flexibility, reacting better to changes in demand, improving cash flow and reducing transport costs by 10 to 20%.
In this article, we’ll provide an overview of the beverage supply chain and explain how Hillebrand Gori can help you increase efficiency in your logistics operations.
What is the beverage supply chain?
The beverage supply chain involves sourcing, processing and delivering raw materials to customers.
It also involves managing the transportation of finished products to the end consumer.
Here is the typical flow of the beverage supply chain:
- Source raw materials produced by vineyards.
- Process raw materials into finished goods i.e.wine.
- Store the wine in warehouses.
- Transport wine to retailers, distributors or end-customers.
What is beverage logistics?
Logistics is an important part of the beverage supply chain.
It's the physical process that enables businesses to store and transport wine.
It includes:
- Procurement
- Inventory
- Distribution
- Warehousing
- Transportation
- Packaging
- Risk management
Now, let's look at a case study detailing the challenges of beverage supply chain logistics and how Hillebrand Gori's Riga hub can help improve efficiency.
Beverage supply chain logistics: the challenge
Russia, together with other Central Asian markets, show a healthy growth in consumption of imported alcoholic beverages, becoming attractive markets.
However, local tax, legislation and regulation makes imports a complex matter.
Beverage supply chain logistics: the solution
Hillebrand Gori offers a Baltic gateway to Russia, Ukraine, Belorussia, Kazakhstan, Uzbekistan and Kirgizstan with its warehousing and cross-docking facility in Riga (Latvia). A +30,000 square metres temperature-controlled warehouse located less than 30 km from the port.
Our Riga facility is more than a simple warehouse; it offers integrated services to improve your beverage supply chain efficiency and costs. Connected with more than 20,000 wineries, distilleries and breweries around the world, our customers can benefit from the synergies that only a specialist global player can offer.
Dedicated to serving the beverage industry since inception, we have the knowledge and understanding of these sensitive commodities. Our team of experts work across 90 countries with leading IT technologies to ensure you get the best possible solution for your logistic needs while preserving the quality of your beverages.
Here’s what our hub can do for you.
Improve product flow and reduce costs
The purpose of our hub is to move your beverages in and out quickly and act as a buffer to smooth fluctuations in demand.
Your transport rates will improve by using de-consolidation and consolidation with other brands, particularly because we are already working with customers who may be shipping from the same origin and/or to the same final destination.
Gain more flexibility to match market demand
By using our warehousing and cross docking solutions, beverages will be closer to the final market, thereby shortening the lead times.
This allows a quicker reaction to changes in demand, enabling you to adapt to consumer needs by our value-added services such as labelling or special packaging.
Optimize your cash flow
By using Hillebrand Gori’s facilities in Riga, importers can reduce their stocks at final market, eliminating by-passing warehouses and, at the same time, excise duties are postponed until the beverage reaches the final destination.
Avoid paperwork to make imports easier
Our experts will manage customs, duties and transport for any destination to accomplish with all the regulations.
You will be able to safely and compliantly reach the market thanks to our importing license to Russia.
Keep visibility and control
Benefit from our in-house custom-built applications and leading technologies designed to deliver the best outcome for each step of the transportation management process.
myHillebrandgori will provide visibility and traceability on the order and product level, allowing exporters and importers to make informed-based decisions.
Reduce risk to simplify exports
There’s no need for specific labelling and specific stocks at origin.
Suppliers don’t need to worry about labelling and stocking bottles for different markets to fulfil local regulations. We can simplify logistics, labelling any packaging at our facilities.
Our trained staff can manage several types of excise stamps, strips, multi-back labels and stickers to relabel the beverages according to each local market’s needs.
Optimizing the efficiency of your beverage supply chain
To effectively tackle beverage supply chain challenges, it's crucial to focus on enhancing long-term planning and risk management.
By relying on our Riga hub to distribute your beverage to Russia and Central Asian countries, you will gain efficiency in your beverage supply chain in the following ways:
- Optimize your product mix in delivery to final customers.
- Reduce transportation costs by 12% by using our cross-docking services.
- Improve payload and reduce carbon footprint.
- Improve reaction to changes in market demand.
- Avoid customs paperwork and ensure a safe border crossing.
- Improve your cash flow by reducing stocks in the final market and postponing excise duties.
- Ensure the beverage reaches its destination in optimum condition.
- Reduce the risk of stock obsolescence.
Our team of experts will work closely with you to create a plan tailored to your needs and goals. We’re committed to delivering the best results so you can meet and exceed your customers’ expectations.
We understand the complexities and challenges of managing a beverage supply chain and are here to help. Contact us today to learn more about how we can help you.
How can we help your business grow?