Trailer Magazine

AusPost enters wine distribution alliance

  • Posted on Wednesday 3rd, July 2019.

Digital Wine Ventures has partnered with Australia Post to launch WINEDEPOT, a vertically integrated trading and logistics platform that aims to service Australia’s multi-billion-dollar wine industry.

The platform is reported to allow orders to be fulfilled from inventory reserves held in ’depots’ servicing key markets to significantly reduce delivery times, freight costs and opportunity for breakages.

Australia Post Head of Growth Products, Paul Hersbach, is positive about the partnership and sees the potential for WINEDEPOT to transform the existing wine supply chain.

“Our partnership with WINEDEPOT provides the wine industry with a specialised distribution service that will not only save money but also improve the consumer delivery experience,” he said. “We believe that it will help many wine businesses increase their online sales as they place their inventory closer to the end consumers and offer same day evening delivery as a standard service.”

Under the agreement, WINEDEPOT will establish its four ‘depots’ within Australia Post’s existing distribution centres located in Sydney, Melbourne, Brisbane and Perth.

“Each depot will hold a very broad range of suppliers inventory on consignment, which can be accessed by a range of sales channels,” said Digital Wine Ventures CEO, Dean Taylor.

“As orders are processed through our platform they are routed to the depot closest to the delivery address where they are picked, packed (by bottle or case) and drop-shipped to the end customer. Depots are then automatically replenished on a bi-weekly basis from WINEDEPOT’s regional bulk storage facilities on behalf of suppliers.

“Being located within Australia Post’s distribution centres will allow orders to flow directly into Fulfillio, Australia Post’s fulfilment system, avoiding the typical need for collection, transfer and sortation. This further reduces handling costs and delivery times.

“With the arrival of Amazon, every Australian consumer will soon expect fast and free delivery. Any business not offering the same will simply lose market share. WINEDEPOT will provide the wine industry the infrastructure to allow that calibre of service level to be provided viable,” he said.

Taylor expects WINEDEPOT will leverage the learnings from the Australia Post partnership to establish a working model that it can use in other countries.

“Australia produces $6 billion of wine each year,” he said. “However it’s just small part of the $300-plus billion global wine market. We believe that our platform has the potential to release an enormous amount of value not just here but globally. Partnering with existing carriers and/or 3PL logistics companies like we have with Australia Post in other key wine markets makes a lot of sense.”

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