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Wine supply chain survey and benchmarking

Project Number
US LOG 01

Project title
Wine supply chain survey and benchmarking

Project leader
Louw, J J

Institution
University of Stellenbosch. Department of Logistics

Team members
Louw, J J
Van Eeden, J
Goedhals-Gerber, L L

Objectives & Rationale
Define measurement framework with metrics.
Complete first and second round measurements (Round 1 complete, Round 2 complete).
Analyse data and provide feedback (Round 1 complete, Round 2 complete).

Methods
Interviews, Questionnaires, Online surveys, Workshops.

Key Results
Finalised Performance Measurement Frameworks for three industry segments:

  • Packaged Local
  • Packaged Export
  • Bulk Export

The measurement frameworks were compiled into a Field Manual that explains the frameworks
and how to implement it. This Field Manual could be used to implement the competitive
benchmarking.

Additional smaller studies contributing knowledge to the project was completed focussing on:

  • Supply chain analysis at private wine cellars and estates
  • Investigation into reliability and responsiveness issues
  • Analysing processes and efficiencies at warehouses and in distribution
  • Developing a flexibility metric for bulk exports
  • Responsive supply chain strategies
  • Sustainability opportunities in the wine supply chain

Additional Masters Studies were conducted to provide inputs and support to this topic:

  • A framework for implementing demand planning in small to medium sized wineries
  • Developing a performance measurement technology platform that could be used in the
    wine industry
  • Demand driven material requirement planning distribution buffer profiles for the wine
    industry in South Africa

Conclusion/Discussion
The measurement frameworks were developed and are ready for implementation. Many participants in the industry do not have the necessary information systems in place to measure the metrics required quickly and easily for a competitive benchmarking study to be completed on a frequent basis. A certain level of internal performance measurement and benchmarking is required before an industry benchmarking attempt can be launched. A certain level of industry supply chain maturity needs to be achieved to ensure the data contributed to the benchmarks is
accurate, are available and can be trusted.

Presentation(s)
Van Eeden, J, Louw, J J, Van Dyk, F E, Jooste, C, Roos, T, and Smit. 2014. Development of a supply chain performance measurement framework for the South African wine industry. Paper presented at the 3rd International Workshop on Food Supply Chains, 4-7 November 2014, San Francisco, United States.

Jooste, C, Van Eeden, J and Van Dyk, E. 2014. South African supply chain performance measurement framework. Paper presented at the Next Generation Supply Chains – Trends and Opportunities. Hamburg International Conference of Logistics. Hamburg, Germany.

Van Eeden, J, Kruger, P (2016) Identify major reasons for reliability issues in the packaged export segment of the South African wine industry. Proceedings of the Fourth International Workshop on Food Supply Chain (WFSC 2016), Stellenbosch, South Africa, 12-14 Sept 2016

Paper
Jooste, C, Van Eeden, J, Van Dyk, E. South African supply chain performance measurement framework. IN: Kersten, W (ed), Blecker, T (ed) and Ringle, C M (ed). 2014. Proceedings of Next Generation Supply Chains – Trends and Opportunities. Hamburg International Conference of Logistics. Hamburg, Germany. (p. 305-332)

Van Eeden, J, Louw, J J, Van Dyk, F E, Jooste, C, Roos, T, Smit, J. 2014. Development of a supply chain performance measurement framework for the South African wine industry. IN: Cholette, S (ed) and Cowley, M (ed). Proceedings of the 3rd International Workshop on Food Supply Chains, 4-7 November 2014, San Francisco, United States. (p. 1-12)

Thesis
Roos, T. 2015. Developing a performance measurement framework to benchmark the South African wine supply chain with a focus on the packaged export supply chain segment. M. Eng (Research) Engineering Management. Stellenbosch University, Stellenbosch.

Jooste, C. 2016. Performance measurement framework for the South African wine supply chain: An investigation of packed products in the local market. MSc. Stellenbosch University, Stellenbosch.

Smit, J. 2016. Developing a performance measurement framework for the South African wine supply chain: A focus on the bulk export segment. M.Eng (Research) Engineering Management. Stellenbosch University, Stellenbosch.

Final Report

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