Wine industry Supply Chain (WSC) modeling: an Argentine-France - - PowerPoint PPT Presentation

Third International Workshop on Food Supply Chain (WFSC 2014) Making Food Supply Chains Efficient, Responsive and Sustainable San Francisco, CA, November 4 - 7, 2014

Saglietto Laurence - University of Nice Sophia Antipolis – GREDEG CNRS - France Corresponding author: laurence.saglietto@gredeg.cnrs.fr Fulconis François - University of Avignon - CRET-LOG / Aix-Marseille University - France Bédé Didier - University of Toulouse III, Research Center LGCO - France De Almeida Goes Joice - University of Nice Sophia Antipolis – GREDEG CNRS - France Forradellas Raymundo - Universidad Nacional de Cuyo – CEAL - Argentina

Wine industry Supply Chain (WSC) modeling: an Argentine-France comparison

It is a pleasure to share the activities of the WFSC Thanks Susan & Alejandro!

The Wine Regions selection

• Mendoza, Argentina (149.000 KM2)
• Zone of Mendoza River (~5.000 km2)
• North zone;
• East zone
• Valle de Uco
• Sud-Est France (60.000 KM2)
• Languedoc-Roussillon
• Provence
• Vallée du Rhône

Argentine and France Viticulture

• General characteristics

Number of wineries

Argentine 1.280 Mendoza area 998 France 1.498 South-East area 73

Internationally active Total Wine Production

Argentine 1.047 France 355 Argentine 11,02/millions hl France 42,24/millions hl

Source: National Viticulture Institute – INV; 2012 http://www.inv.gov.ar and International Organisation of vine and wine – OIV; 2012 //www.oiv.int

Total General Information Argentine and France wine exports

USA , 1726 CANADA , 285 RUSSIA , 233 UK , 167 PARAGUAY , 163 BRAZIL , 156 NETHERLANDS, 108 JAPON , 59 DENMARK, 54 GERMANY, 53

• Exported volume (Mhl) by destination country

France

GERMANY, 2591 UK, 2100 BELGIUM, 1505 NETHERLANDS, 1212 CHINA , 1395 USA, 1170 SWITZERLAND, 717 JAPAN , 605 CANADA, 460 HONG KONG, 292

Argentine

Source: National Viticulture Institute – INV; 2012 http://www.inv.gov.ar and International Organisation of vine and wine – OIV; 2012 //www.oiv.int

Actors Wine Supply Chain

Raw material supplier Grape Grower Wine producer Cooperative winery Bulk wine distributor Transit cellar Filler/Packer Freight Forwarder Freight

• perator

Importer Finished goods disbrutor End Customer Retailer Wholesaler

Modeling Supply Chain

Approach: Modeling the WSC through the Social Network Analysis (SNA)

• Analyses the interactions of nodes within a network.
• Contributes to the understanding of SC complexity.

Unit of analysis:

• Contractual relationship
• Each actor is considered a community

Decomposition in 3 Levels of Analysis:

• Triad (3 Node Network)
• Group
• Complete network

Level of Analysis

First Level - Triad (3 Node Network)

Trio node network Example of role for the central actor in the triad Freight Operator / Importer / End customer Intermediate To turn them into its own advantage, dealings between networks members Freight Forwarder / Freight Operator / Importer Broker To facilitate or control the flow Filler-Packer / Finished Good Distributor / Wholesaler Coordinator To reconcile several options of network members and align goals Wholesaler / Retailer / End customer Agent To distribue ressource Transit / Filler-Packer / Finished Good Distributor Hub To facilitate or control the flows of supply across the whole network

• 1. Production group

Second Level - The Groups

Level of Analysis

• 1. Production group

Second Level - Groups

Raw Materials supplier Cellar door sales Grape Grower Filler - Packer Bulk wine distributor Transit cellar Wine Producer

Level of Analysis

Level of Analysis

• 2. Distribution on national market

Filler-Packer Finished good Dist. Wholesaler Retailler End Customer

• 3. Distribution on international market

Filler-Packer End Customer Importer Freight operator Freight Forwarder

Third Level - Complete Network

Level of Analysis

Grape Grower Raw Materials supplier Freight Forwarder Freight operator Importer Wholesaler Retailler End Customer Finished good Dist. Wine Prod. Bulk wine dist. Cellar door sales Transit cellar Filler -Packer

Research methodology

Case studies

Argentina France Criteria for identifying companies Classification of Economic Activities Case studies 6 companies 6 companies Case studies 2 importers

Grape Grower Raw Materials supplier Freight Forwarder Freight operator Importer Wholesaler Retailler End Customer Finished good Dist. Wine Prod. Bulk wine dist. Cellar door sales Transit cellar Filler -Packer

Results and discussion

• Theoretical Model: The complet network of WSC

• MA model: Mendoza Argentina WSC network

Results and discussion

Raw Materials supplier Wine Prod. Freight Forwarder Freight operator Importer End Customer Finished good Dist. Wholesaler Retailler

• SEF model: South East of France WSC network

Results and discussion

Raw Materials supplier Grape Grower Freight Forwarder Importer End Customer Retailler Wholesaler

• Coop. Winery

1st Comparison Theoretical Model: MA Model & SEF Model

Theoretical model MA model SEF model Main Actors

• 3 actors: wine

prod., filler- packer and finish goods dist.

• 1 actor: wine

prod.

• 2 actors:

cooperative winery and grape grower

Results and discussion

Grape grower and wine prod.

• Estate wineries: private domains

International distribution

• Equivalent to the Theoretical model

National distribution

• Equivalent to

the Theoretical model

• Differs the

Theoretical model

• Prod. Network
• Less integrated
• More integrated

2nd Comparison Production Network: MA Model & SEF Model

MA model SEF model Hub Central

• Wine producer
• Grape grower and the

cooperative winery

Results and discussion

Prod.

• Grapes from its own vineyards,
• Grapes are transported to wineries

using an internal or external transport.

• Many steps fot prod. Wine. The

number of steps depend on the type

• f wine.
• Grapes from its own vineyards.
• Grape growers and cooperative

winery can also export.

• Sale grapes directly to end

customer.

• The cooperative winery includes a

large group of grape grower.

• The cooperatives wineries have a

very important place in the WSC.

MA model SEF model Recognized certifications

• ISO 9001 - ISO 14001 -

HCCP - ASPBA ISO 9001 - ISO 14001 - IFS BRC - VDD

2nd Comparison Continuation: MA Model & SEF Model

Sustainability Environmental aspects

• Reduction of water and fuel consumption,
• Systematic waste sorting and recycling,
• Reduction in pollutant emissions, carbon footprint,
• Actions fostering biodiversity

Sustainability Socio- economic aspects RSE - SER

• Use photovoltaic panels

and limits the carbon footprint,

• lighter bottle, collecting

and recycling cork,

• computerized vineyard

and intranet use.

• protocol has a strong

humanistic approach,

• social benefits
• child-care
• nutrition for the

families of seasonal workers.

3rd Comparison National Market Network: MA Model & SEF Model

MA model SEF model

Results and discussion

Role of coordinator

• Finish goods distributor
• reception, storage,

inventory and dispatch, as well as re-packing and re- labeling as required.

• Cooperative winery
• relationship between

actors,

• activities to satisfy the end

customer.

Dist. channel

• Large Distribution Net
• Rep. various Arg. wines,
• Web advertising
• Short Distribution Net
• online sale, direct sales in

cellar,

• On online social network.

Prod. Strategies

• Strategies «bottle to order » and « label to order »

Charact.

• Altitude is the "Argentine

terroir", temp variability.

• Adequacy between grape

variety used on terroir.

Fourth Comparison: international Market Network MA Model & SEF Model

MA model SEF model

Results and discussion

Dist. channel

• Distributed to external

market through importers

• 3 tiers system
• Incoterm FOB
• freight operator can be

directly in relationship with the wine producers

• Distributed to external market

through importers

• 2 tiers system
• Incoterm FOB
• freight forwarder provides itself

the transportation service of goods to destination countries.

Ports

• Port of Valparaiso and Buenos

Aires

• Port of Le Havre and Marseille

Broker role

• Freight operator
• Freight forwarder

Quality

• Wine quality to the end consumer in the destination country is
• f primary importance.

Conclusion

• Obtaining a new structure and

vision of modeling of WSC through the approach of SNA.

• Identification of relevant actors

having an essential role in the WSC network.

• The model can contribute to

appreciate the key points for a b tt t l ( ll l i

Conclusion

• Identification of inefficient and

efficient processes in their contractual relationship.

• Importance of sustainability:

traceability, carbon footprint, use

• f ICT, LSP processes, reducing

delays between order and shipment.

Suggestion of future works

• Benchmarking through a comparative study
• f other regions
• Performing a correlation study between the

presented model and the process

• ptimization;
• Apply performance measures in this model;
• The use of this model as standard in other

industries of the sector of food and beverage

Third International Workshop on Food Supply Chain (WFSC 2014) Making Food Supply Chains Efficient, Responsive and Sustainable San Francisco, CA, November 4 - 7, 2014

Wine industry Supply Chain (WSC) modeling: an Argentine-France comparison

kike@uncu.edu.ar

THANKS! GRACIAS! MERCI!