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The wine industry is currently struggling with a disruptive supply chain. It is certainly not the only industry that finds itself in a situation like this, but it is an industry that can be organized differently with the help of efficient logistics. Normally, an average supply chain in this industry can be as fast as 30-45 days. Several factors have ensured that the average supply chain can quickly run for at least three months. We do not need to say that this is anything but desirable. It is interesting to look at the causes of this disruptive supply chain. Which are these?

The impact of the pandemic

Overall demand for wine has declined during the pandemic. With the closure of the catering industry, wineries were forced to change their sales channels to direct online sales and the local sales markets. This greatly reduces the number of sales. Demand has recovered in recent times, but there are still large stocks that should normally have been sold by now.

A shortage of transport capacity

Although this is not unknown news, the impact of the shortage of transport capacity remains large. The shortage also means that there is more scarcity in other modalities, precisely because shippers must turn to other options. It is currently expected that it will take until at least 2023 before the container market has recovered. The impact on the wine industry therefore is huge. For most export companies, the transport costs are too high to be able to continue to export profitably.

A lack of good and sufficient staff

Again, this is not an unknown factor, but it certainly has an impact on the wine industry. The costs of good staff are rising and competition is increasing. As a result, the rising costs cannot be fully passed on to the customer and the profit margin continues to decrease. Another consequence is that the products cannot be produced on time

To limit the consequences of the disruptive supply chain, it is very important that the causes are tackled. Fortunately, the damage caused by the pandemic is recovering, so this is a first step towards restoring the entire supply chain. Furthermore, the logistics sector is doing its best to fill the shortage of transport capacity and personnel, so we expect to see an upward trend again over time.