Logistically speaking

James Graham reports on some of the latest news from the logistics sector, including ongoing investment at Vinothéque and an ingenious new keg management system

THE SUPPLY CHAIN is the part of the drinks industry that generally does not get noticed until something goes wrong.  Once the manufacturing process is complete, vintners and brewers look to place the product onto the shelves of the customers and into the hands of the end-consumers.  Supply chain management is how they do that.

 At a recent conference in Amsterdam, Peter Schumann, CIO and member of the management board of Essen-based transport provider Schenker, described the range of services his company provides, which are typical of many modern providers.

"We have a range of tools at our disposal that provide a full overview and allow effective control of complex transport and supply chains.  But what is now state-of-the-art will no longer be adequate tomorrow to meet customer demands for more, and above all proactive, information on such things as deviations from schedule.

"With the services marketed under e-Schenker on the Internet, for example, such as price enquiries, online booking and consignment tracking, Schenker is one of the leaders in this competitive arena," Schumann explains.

"The aim now is to make use of bar-code scanning, delivery notes and other documents as well as information from GPS systems and sensors to create events that can be accessed in our systems and that ensure greater transparency in the transport and supply chains."

It will become increasingly important in future, he stresses, to exploit new technologies in combination with high-quality optimised processes, such as timetables and fixed routing schedules, to generate "alerts" that enable the service provider to proactively inform customers about deviations in the supply chain while supplying recommendations on how to remedy the problem.

Wine store in the heart of brewing country

The acquisition of a specialised bonded warehouse in Staffordshire built in the mid-1800s represents a move into the future of wine and spirit industry warehousing, considers David Hogg of Vinothèque.

Vinothèque, based in a Grade II-listed former railway grain warehouse in Burton-on-Trent,  operates as a commercial warehouse, offering both duty-paid and under-bond storage.

In the two years since the facility was established, the company has operated it as the centre of distribution and storage operations for customers such as Lay & Wheeler and Mayfair Cellars, and has already attracted more than 150 clients.

A steady programme of building work has seen Hogg and his team transform the building to provide the high-specification needs of specialised storage.  The building itself has a natural affinity for wine storage, with its thick Victorian walls and high ceilings, but the company has invested considerable amounts of money in taking it into the 21st century as well, including full CCTV systems and 24/7 security patrols.

However, two years on the company now recognises the need to develop further and is currently constructing a new visitor centre and has plans to bring in condition reporting facilities, update its warehouse management systems and upgrade customs and excise systems to stay ahead of any planned changes to current legislation.

It’s also developing a web-site that will allow remote monitoring facilities and offer clients greater interaction online. 

Saving Trapps through the door

Manchester-based Brandford is a warehousing and distribution company with both UK and foreign customers.  Distribution is provided to all regions in the UK through the use of a variety of carriers, whether own vehicles, sub-contractors or nationallybased carriers, while exports are moved by the use of freight forwarders and shippers.

The company’s operating divisions and each of its five sites are specialised in areas such as fine wine storage, the general drinks sector as well as other activities such as document storage and general warehousing and packaging, says managing director Gordon Haynes.

"The fine wines division benefits from being located in a building that was originally constructed as a cotton mill in the early 1900s and whose construction makes it ideal in terms of  both security and environmental stability," he observes.

"The solid brick walls and floors are significantly thicker than those constructed today and provide excellent insulation which together with the additional environmental controls provide good ambient temperature and humidity in the relevant storage areas.

In one sense the cellars of old have been recreated!" A total of 60,000m2 are available for warehousing purposes in properties owned by a sister company.  Distribution to customers is achieved through a variety of means which depend on the recipient’s requirements.

In some instances, customers will arrange both supply and collection deliveries controlled through a flexible appointment system.  "In terms of the UK market we are probably classified as a medium sized player but with a surprisingly wide customer base," says Haynes. Consistent growth has been achieved over the last three years.

"In terms of fine wines, we are the major provider of warehousing in the North of England although, in numerical terms, our customer base has a southern bias – perhaps the divide isn’t so great after all! Much of the growth has initially related to contract work but as our knowledge and experience has developed, so too has the fine wine operation."

Brandford recently became involved in the saga of Trapps Cellars when 25,000 cases were transferred to the company from Trapps’ administrators.  However, some in the trade have confused Brandford’s role in the matter.

"There does seem to be some confusion as to our role in the transfer from Trapps," says Haynes.  "As a third party warehouse no wine has actually been purchased and the transfer was because of an agreement we reached with the administrator regarding the safe storage of the fine wines.

If this had not taken place then a considerably large quantity of high value product would have been at the mercy of a potential liquidator, or in the cases of bonded stock awaiting a decision from Customs & Excise, who in any event closed the bond on March 31.

The arrangement was completely commercial and involved the purchase of the book debts relating to the stock transferred to us."  The physical transfer involved no less than 25 40ft vehicle loads using bonded transport.

100 not out for Microstar

Canada’s Sleeman Breweries is the 100th brewer to select Denver, Colorado-based TrenStar’s MicroStar Keg Management to acquire kegs and provide keg management services in the US.

MicroStar is the fourth largest keg owner in the US behind Anheuser-Busch, SABMiller and Coors.  MicroStar will make kegs available on a "per-fill" fee basis under a five-year keg management agreement.

Sleeman’s managing director of US operations John Driggers says, "MicroStar will allow Sleeman to introduce Canada’s premier craft brewery to the United States with no limitations on geographic markets, no empty keg retrieval challenges and no need for new capital budgeting.

Sleeman will use MicroStar kegs on a focused summer roll-out in nine states."  TrenStar’s North American operations director David Webster says, "By outsourcing keg management, brewers can concentrate on their core business, expand operations and save money on every keg sold.

While we have quietly established ourselves as a proven solution for North American brewers since 1996, at the same time our keg management model has grown globally, attracting worldwide attention."

MicroStar owns more than a quarter of a million kegs for distribution in the US. The fleet includes half-barrels and 5.16- gallon or "sixth barrel" kegs, the industry’s fastest growing container for draft beer sales.

Customers include Anchor, Brooklyn, Bulmers Cider, FX Matt, Goose Island, Great Lakes, Jacob Leinenkugel, Shipyard and Widmer Brothers.