How to Optimize Logistics with Bulk Wine Spirits
How to Optimize Logistics with Bulk Wine & Spirits Solutions
Mr. Thomas Barfoed Area Director North America JF Hillebrand Group WWW. JFHILLEBRAND. COM @JFHILLEBRAND
JF Hillebrand Group 2 key global brands Beer, wine & spirits Packaged and bulk International logistics service providers specialized in niche markets Industrial bulk liquids WWW. JFHILLEBRAND. COM @JFHILLEBRAND
WWW. JFHILLEBRAND. COM WHAT IS BULK SHIPPING? THE BULK ADVANTAGE EQUIPMENT OPTIONS INDUSTRY SAFETY QUALITY CONTROL BULK SUPPLY CHAIN @JFHILLEBRAND
Defining “bulk” cargo Bulk is product that is sold unpackaged in large quantities Sea Freight Road transport Bulk Trailer 2 -24, 000* liters Flexitank 12 -24, 000* liters ISO Tank (up to) 26, 000 Liters Bulk Tanker ~500, 000 liters Bulk Cargo WWW. JFHILLEBRAND. COM @JFHILLEBRAND
Defining “bulk” cargo Bulk is product that is sold unpackaged in large quantities Bottles 9 Liter (case) Drums (up to) 200 Liters Intermediate Bulk Containers (IBCs or Totes) 1, 000 Liters Palletized Cargo WWW. JFHILLEBRAND. COM @JFHILLEBRAND
WWW. JFHILLEBRAND. COM WHAT IS BULK SHIPPING? THE BULK ADVANTAGE EQUIPMENT OPTIONS INDUSTRY SAFETY QUALITY CONTROL BULK SUPPLY CHAIN @JFHILLEBRAND
Cased Goods Shipping Model Production Shipping Capacity WWW. JFHILLEBRAND. COM Bottling (Origin) Shipping Market Equipment Pallets (US) Cases Liters 20’ container 10 560 5, 040 40’ container 21 1176 10, 584 @JFHILLEBRAND
Bulk Wine & Spirits Shipping Model Production Shipping Capacity Bottling (Destination) Equipment Pallets (US) Cases Liters 20’ container 10 560 5, 040 40’ container 21 1176 10, 584 ISO Tank / Flexitank WWW. JFHILLEBRAND. COM Market 24, 000* @JFHILLEBRAND
Example – FOB Spanish Port to door Napa PRODUCT IN BULK PACKAGED PRODUCT 1 Flexitank = 24, 000 Liters 2. 3 x 40’ Dry containers = 24, 000 Liters 1 x $4, 750 shipping cost 2. 3 x $4, 150 shipping cost Cost per liter = $0. 20 Cost per liter = $0. 40 Additional cost considerations: q Destination bottling cost? q Storage cost? WWW. JFHILLEBRAND. COM @JFHILLEBRAND
Shipping Model Comparison PRODUCT IN BULK PACKAGED PRODUCT + Private label market + Premium market + Local blending + Estate bottled authenticity + Rapidly adapt to market changes + Supply chain flexibility + Tax advantage* − Higher volume commitment − Higher transport cost per unit − Fixed geographical bottling point − Longer lead time for bottling changes WWW. JFHILLEBRAND. COM @JFHILLEBRAND
WWW. JFHILLEBRAND. COM WHAT IS BULK SHIPPING? THE BULK ADVANTAGE EQUIPMENT OPTIONS INDUSTRY SAFETY QUALITY CONTROL BULK SUPPLY CHAIN @JFHILLEBRAND
Flexitank Benefits Limitations + Global availability − Non-hazardous liquid only + Cost advantages − Technical support + Road, rail, ocean transport − Recyclability varies by + Single use manufacturer Shipping Capacity : 15, 000 - 24, 000 liters* *Max load COA Flexitank Code of Practice WWW. JFHILLEBRAND. COM @JFHILLEBRAND
ISO Tank Benefits Limitations + Hazardous liquid (spirits) − Availability, re-positioning + Ease of loading/discharge − Cleaning / contamination risk + Temperature control − Per diem costs + Reusable units − Higher cost compared to flexitanks Shipping Capacity : 22, 800 - 26, 000 liters* *Max load for California is 24, 000 L WWW. JFHILLEBRAND. COM @JFHILLEBRAND
IBC’s / Totes Benefits Limitations + Ideal for brand trials − Unit positioning at origin + Good for receivers with − Limited payload limited capacity + Storage ? − Disposal (resale market? ) − Addt’l handling / repositioning − Non Hazardous liquids − Quality concerns? Shipping Capacity : up to 1, 000 liters WWW. JFHILLEBRAND. COM @JFHILLEBRAND
WWW. JFHILLEBRAND. COM WHAT IS BULK SHIPPING? THE BULK ADVANTAGE EQUIPMENT OPTIONS INDUSTRY SAFETY QUALITY CONTROL BULK SUPPLY CHAIN @JFHILLEBRAND
Flexitank – Quality Standard Timeline Container Owners Association Flexitank Code of Practice established COA launched Nov 2004 June 2008 Flexitank division launched Jan 2009 New PAS/1008 Flexitank Standard Jan 2015 Flexitank Management Committee (FMC) created 65 WWW. JFHILLEBRAND. COM Sep 2016 Flexitank Companies are COA Associate Members @JFHILLEBRAND
Flexitank Industry Standards Flexitank Code of Practice ü Container selection for transport ü Container and flexitank marking ü Incident management, insurance, training PAS/1008 Standard ü Materials, Valves (loading /discharge) ü Flexitank System (including rail impact testing) ü Commodity loading temperature range ü Documentation, Incident Records WWW. JFHILLEBRAND. COM @JFHILLEBRAND
WWW. JFHILLEBRAND. COM WHAT IS BULK SHIPPING? THE BULK ADVANTAGE EQUIPMENT OPTIONS INDUSTRY SAFETY QUALITY CONTROL BULK SUPPLY CHAIN @JFHILLEBRAND
Questions to ask about Flexitank Quality Manufacturer Owned or purchased? Factory Standards ISO 9001: 2008, ISO 22000 Compliance Container Owners Association ISO PAS 1008: 2016 Materials 100% virgin grade materials? Opaque or transparent? Barrier Protection layers against oxygen ingress, halo-phenals “cork taint” and hydrocarbon taints “naphthalene” Food Safety Certified to EU and FDA standards? Performance R&D: valve technology and design? WWW. JFHILLEBRAND. COM @JFHILLEBRAND
Questions to ask about ISO Tank Quality Ownership Fleet owned or third party? (liability, cross-contamination? ) Commodity ISO Certified for hazardous liquids? Compliance Wine & Spirits Trade Association (WSTA) Code of Practice for transport in tanks, vessels, including cleaning practices Food Safety Certified to EU and FDA standards? WWW. JFHILLEBRAND. COM @JFHILLEBRAND
WWW. JFHILLEBRAND. COM WHAT IS BULK SHIPPING? THE BULK ADVANTAGE EQUIPMENT OPTIONS INDUSTRY SAFETY QUALITY CONTROL BULK SUPPLY CHAIN @JFHILLEBRAND
What to consider for converting to bulk shipping How quickly is the SKU moving? Destination bottling capacity? Fast mover? Estate vs local bottling? Destination storage? Quantity Facilities Brand integrity Logistics Spirits or wine shipping solutions and cost? WWW. JFHILLEBRAND. COM @JFHILLEBRAND
What to look for in a bulk logistics partner? Manufacturing Research & Development Logistics Management & Solutions Information & Risk Management Fitting & Technical Assistance Safety, Recycling & Sustainability Global Network Infrastructure WWW. JFHILLEBRAND. COM @JFHILLEBRAND
Thank you, visit us at Table 83 Q&A
- Slides: 25
