Development of a collaborative framework for wine bottling facilities and their supply chain partners
Thesis (MEng)--Stellenbosch University, 2020.
ENGLISH ABSTRACT: In recent years, both local and international demand for South African wine have seen significant growth. This includes demand for packaged exports as well as bulk exports. However, the South African wine industry has placed emphasis on increasing packaged export and decreasing bulk exports to create a larger market share for brand SA in international countries. This correlates to the Wine Industry Strategic Exercise (WISE), which aims to increase the packaged-bulk ratio from the current 40:60 to 60:40 by 2025. This increase will require stakeholders of the industry to work closely together to produce more packaged wine at the lowest possible price while utilising the available bottling capacity to the best of their ability. Communication and information sharing, i.e. collaboration between wine bottling facilities, wineries and dry goods suppliers are of the essence to ensure that bottling delays and missed production opportunities are avoided and that demand requirements are met in a timely manner. The coordination of ordering activities, delivery as well as the availability of dry goods and wine for a given production period are essential for bottling facilities and their various supply chain partners, as these factors all influence the ability of the stakeholders to deliver packaged orders on time and in full. Previous studies highlighted a lack of integrated decision-making capabilities within the wine supply chain, resulting in a decrease in responsiveness and reliability. This study identifies the key dimensions and aspects that must be included in a collaborative framework to enable stakeholders in this supply chain environment to work together, looking to enhance decision-making capabilities, ultimately increasing responsiveness and reliability. The Wine Industry Collaboration (WIC) framework proposed, is developed using literature, primarily replying on the concept of Collaborative Planning, Forecasting and Replenishment (CPFR) as primary input. In addition, the researcher conducted several interviews with a variety of industry stakeholders to gain further understanding of the industry and the challenges. This along with the implementation guidelines, serves to guide stakeholders towards the successful implementation of a collaborative effort. Several subject-matter experts (SMEs) validated the WIC framework, focusing on its practicality, feasibility and structure. The researcher used semi-structured interviews to perform the validation. This assisted the researcher to make appropriate amendments where needed and to incorporate improvements. Finally, the implementation guidelines, derived from the validated WIC framework are validated using a theoretical case study at a wine bottling facility. It was found that a need exists for such a structured collaborative approach and that the implementation of such a framework would enable the sharing of demand information, improve order planning and fulfillment and finally help stakeholders with performance measurement. In conclusion, the South African wine industry can benefit from a collaborative effort such as the one proposed by the WIC framework and implementation guidelines presented in this document, as it will assist stakeholders to improve decision-making, aiming to improve the reliability and responsiveness of the entire industry. This study is a starting point to introduce collaboration and the benefits thereof to stakeholders in the South African wine industry.
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