OPPapers.com

Mount Avoca Wine Supply Chain

Executive Summary

Mount Avoca winery is a small medium business located in Central Victoria. Domestic and international competition can make lifting unit sales difficult, so we have looked to their supply chain as a source of controlling and reducing input costs where possible.
The companies underlying business strategy is to make quality (boutique) wine providing company image, whilst manufacturing table wine for Domestic and Export consumption that provides the volume.
This report looks at all of the 7 supply chain principles, determining what is appropriate and can effectively be introduced to cap and hopefully lower input business costs, understanding at the same time the limitations that small businesses operate under, including, but not always having the resource base available to larger manufacturers.
Final recommended effective strategies focus on strategic relationships that outsource procurement and introducing a VMI process that accommodates current IT levels and product supply partnerships.

1. Introduction

In 1970 Mount Avoca Vineyard began as a passionate hobby for its owners John & Arda Barry. Originally designed as a country escape from city life pressures, this hobby steadily grew until their son Matthew was drafted in to help manage and direct a hobby that was now in reality a small business, growing steadily. A business operation that now really demanded full time attention. Family ownership of the now quite large business was problematic with retirement looming for the original founders. Separating family finances was always going to be an issue.1995 saw the business sold to an investment group, led by a bank consortium. This enabled the founders to separate their original investment, retire and neatly resolve family issues under current for some years. Matthew Barry remained with the business to fulfill contractual obligations, but unable to accommodate the new management, he soon left to look further a field. Despite strong wine...