Logistics News

Treasury looks to streamline supply chain

Australian winemaker embarks on the second phase of a global logistics reform

 

Listed winemaker Treasury Wine Estates has commenced a new phase of its supply chain optimisation program.

The company announced yesterday that it hopes to remove excess costs and complexity from its freight operations around the world.

Its strategies include consolidating supply chain infrastructure and selling off surplus assets; clustering non-core vineyards together (thereby removing overheads); and simplifying logistical, warehousing and freight arrangements globally.

CEO Michael Clarke says Treasury Wines has had an excellent year, and improved supply chain processes will further drive that momentum.

“Today’s announcement demonstrates that we are successfully transitioning from an order-taking agricultural company to a more efficient, brand-led marketing organisation,” he says.

“Right-sizing our production footprint, improving our return-on-capital-employed [metric], and optimising our global supply chain network are crucial steps on this journey.”

The second phase of the supply chain reform program is expected to deliver annual benefits of $30 million a year by 2020, with approximately half of that gain taking place in the Americas markets.

It will be funded in part by up to $30 million of vineyards, wineries, packaging, and warehousing facilities that have been earmarked for sale.

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