Treasury Wine Estates introduces Australian first logistics model

A first for the Australian wine sector, Trebuchet Logistics will use a fourth party logistics model (4PL) to manage the warehousing and distribution requirements of Treasury Wine Estates (TWE), as part of a joint venture announced today.

As a result of the new logistics model, a National Distribution Centre will be built in Penfield, Adelaide, and a series of satellite state warehouses will be established.

The model will see Trebuchet Logistics contracting third party service providers to manage all elements of the supply chain including the handling, storage, transport and IT requirements to deliver TWE' products both within Australia and to export markets.

Trebuchet Logistics will independently manage the end to end logistics network from raw materials through to domestic and export customer deliveries for all TWE products, with a focus on storing and distributing the wine in appropriately controlled environments, thus preserving product quality and freshness.

Tim Ford, TWE's global director logistics, said "This fresh and efficient approach to logistics is another part of our strategy to optimise our global supply network. We are reviewing and improving our entire logistics networks and
introducing innovation, investment and leading practices to ensure our premium wines reach customers and consumers in the quality and time frames expected."

Knut Oksby, one of the founding partners of Trebuchet Logistics, has moved to Australia to implement the 4PL model and manage the joint venture operation.

"I'm really excited to continue our relationship with TWE and introduce a new fully integrated supply chain management model to the Australian wine industry. We have seen how this model delivers efficiencies and value to all participating companies in Sweden, Finland and Norway and we are keen to develop this business model in Australia."

The new 4PL model will replace TWE's existing domestic and export warehousing and logistics service contracts which expire in the next 12 to 18 months. All logistics services and the 4PL management model will be fully operational by April 2014, with a phased implementation beginning July 2013.


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