How to overcome challenges in the Wine Distribution Industry

How to overcome challenges in the Wine Distribution Industry

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The last couple of years have caused many shifts in the way consumers shop and consume goods. New consumer behavior trends shifted online as closures of tasting rooms and deferred events such as travel and weddings occurred. The wine industry globally generates $29 billion in annual revenue, with the expectation of more growth as societal taste changes and new products and opportunities are coming into the industry. In addition, demand is bouncing back as deferred events are now taking place.

With demand beginning to increase again, there seems to be a global supply chain issue within the wine industry. This is caused by a recovery economy where consumers are spending again and imported wines are arriving too quickly for the supply chain to handle, while there are also higher costs involved at every logistical link such as wine producers, wine distributors, even materials needed for wine production such as labels, glass and, cardboard. This wave of returning demand is taking processes that would normally take about 30 days to now 3 months.

Now, this situation begs the question, how do those in the wine distribution industry overcome these challenges?

The wine market has a unique set of challenges to overcome the managing quality wine, retail sales, or handling domestic wines, fine wines, or classic wines. With the world consuming more wine than even the logistics of wine distributors is a critical aspect of the industry that needs a complete solution.

The common challenges that wine distributors must overcome

Tax & Duty Regulations

When it comes to the wine sector one of the main challenges is handling government taxation and regulations.

Since we’re dealing with alcohol, an obvious challenge includes government regulation and taxation. Wine distributors must be certain that they can correctly accrue alcohol duty levels while also leaving stock under bond (duty-free) until it is required by a consumer. Pricing mechanisms must also allow businesses to sell the same item duty paid to an end customer, but also quote an under-bond price for delivery to another bonded warehouse.

Distributors need to avoid fines and taxes on compliance issues therefore they require a specialized tracking system that will give specific insight into inventory. Information such as which items, vintage, and Lot to move from duty-free for a customer order.

Tracking Lot Rotations

Wine and alcohol distribution receive shipments that come with a lot or batch number, this is often referred to as a rotation. Rotations come with their own reference number and dates that include “use by”, “best by”, or “not before”. The challenge that the distributor needs to overcome is the need to ensure that the stock issued is in date order, based on the dates of each rotation, and that there is a record made of which customers received which rotation so that in the event of a product recall, wine wholesalers can identify which supplier the batch came from and more importantly which customers were issued with stock from specific batches.

Due to the fact that wine is perishable an inventory system that needs to track detailed information on batches to avoid a waste of goods.

Managing Demand and Inherit Demand

Of course due to the current landscape and how demand is rising once again managing demand is what is becoming one of the biggest challenges. Pent-up demand is the biggest concern with the possibility of shipments not arriving in time for the holidays thus putting a hold on dry January, which isn’t something to wine about.

When it comes to managing demand for fine wines, there is a different process. New vintage wines require new inventory item numbers that take place of the previous year’s vintage. Although this is a new product it is assumed to be purchased in similar quantities by the same customers. Inventory forecasting in a system must have insights that will know the past demand accurately in order to stock up for the new vintage products. An ideal system will link the previous year’s vintage so that the new year’s vintage will inherit some data insights of the demand history. This allows importers to make strategic decisions on how to go about purchase order quantity.

What does NetSuite offer to overcome these challenges?



With NetSuite, your wine distribution company is capable of managing governance, risk, and compliance that establish controls to monitor and report the effectiveness of the controls. Customized processes can be designed to manage compliance and regulatory challenges as the wine distributor is handling duty processes during shipping. Automation can also be integrated making the processes more streamlined that introducing greater efficiency and enhancing tracking abilities will allow your company to hold optimal financial integrity.

Inventory Management (Traceability, Inventory Planning & more)

Inventory management offers many native tools that will elevate inventory planning for wine and alcohol distribution. Features such as tracking inventory in various locations, safety stock, re-order points, cycle counts, demand planning, supply planning, and distribution requirements planning. Ensuring preferred stocking levels, lead times, and reorder points can be automatically calculated in the system, with suggestions appearing instantly in the order items list. Multi-location distribution requirements planning has advanced parameters that help to balance demand and supply across the entire organization.

NetSuite inventory management also allows backward and forward trace inventory using lot and serial tracking. Lot numbered items track the quantity and specific cost for each lot as products are purchased and produced. When you serialize inventory it allows you to choose specific items when orders are fulfilled. The lot and serial numbers let you define fulfillment strategies such as expiring and first in first out. This method is best to ensure that there is minimal waste and that inventory is used efficiently.

Accounting & Financials

Utilizing NetSuite’s accounting and financial system for your wine distribution company will help finance departments to design, transform and streamline processes and operations. NetSuite seamlessly groups finance and accounting functions with a strong compliance management feature that will improve overall business performance and increase financial close efficiency along with reducing back-office costs. NetSuite gives real-time access to live financial data, where wine companies can quickly get insights to resolve delays and generate statements and disclosures that comply with multiple regulatory financial compliance requirements.
Implementing NetSuite for your wine distribution business gives you nothing to “wine” about. Overcoming challenges whether you’re an authorized importer, independent importer, or casual importer can be simple with the use of NetSuite as your business management tool. Retail stores even producers or anyone involved in the sale of wine and beverage alcohol industry, can benefit from an all in one customizable solution such as NetSuite.

The Needs of Baby and Infant Product Manufacturers

The Needs of Baby and Infant Product Manufacturers

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When trends prevail in the market, they are usually due to some sort of shift in demand. In the infant and early motherhood product manufacturing industry a market growth has been triggered. This was mostly due to a shift in consumer behaviour and buying habits. These newly adopted buying habits of consumer products have increased demand for items such as organic baby foods, tech baby care products, and higher use of eCommerce. As the organic food segment grows due to concerns of possible contaminations and exposure to chemicals, such as metals in baby food, the safety practices of manufacturers are put under the microscope. Due to news revolving around consumer product safety practices about manufacturing and quality control, concerns arose about whether baby food manufacturers have the capacity and software that will allow tracking of products to ensure quality and safety measures. The manufacturing process needs to abide by regulatory requirements and product safety rules.


SuiteBaby is ERP Buddies’ custom-built NetSuite business management solution for the Infant and Early Motherhood products industry, offers a modern approach to business organization in product manufacturing and distribution. SuiteBaby provides an end-to-end software solution that aids in the achievement of a seamless experience across instore, POS, eCommerce shopping along with accounting, financials, CRM, inventory management, and order management. SuiteBaby will enhance your manufacturing companies’ workflows and support the growth of an organization through all ventures.

SuiteBaby supports business functions through:

Accounting & Financials

With an integrated approach to accounting and financials, SuiteBaby improves accounting accuracy by eliminating human errors that can include duplicate data entries and mismanaged spreadsheets. With real-time information, accounting and financial overviews are simply done through role-based dashboards which will support keeping an eye on the “Baby”. SuiteBaby ensures compliance with accounting standards in both local and regional sectors, thanks to its revenue management functionality.

Production Control

Production environments with the support of a production control function can improve scheduling, work management and increase the quality of products. Procedures can be streamlined through automation in creating work orders from sales orders in make-to-order business models. SuiteBaby’s production control feature can further be supported by lot and serial tracing enabling both to be registered through purchasing receipts, inventory, shop floor control, and sales orders. Production control can be relied upon to ensure consumer product safety and product safety rules.

Order Management & Fulfillment

This feature ensures that the entire order to cash process is fulfilled in prompt time due to its automation capabilities. It is also possible to optimize fulfillment across various locations, which include warehouses, stores, and suppliers. With the ability to determine the best shipping location based on proximity or product availability SuiteBaby can help optimize order efficiency. All in all, SuiteBaby’s order management will ensure consistency and efficiency with effective tools to monitor and scale operations.

NetSuite Warehouse Management System

Optimize day-to-day warehouse operations with NetSuite WMS. SuiteBaby uses NetSuite’s Warehouse Management system which provides industry-leading practices and tools, such as barcode scanning, strategies for putting away and picking, task management, return authorization receipts and cycle count plans. When there are many SKUs, warehouse management can quickly become overwhelming and inefficient when relying solely on spreadsheets. SuiteBaby’s WMS eliminates these types of errors, which in conclusion will minimize handling costs, and improve warehouse consistency.

Inventory Management

The inventory module will provide insights such as real-time inventory across all locations in which the business is operating. Additionally, it also has real-time insights on sales channels which will ultimately allow businesses to reduce inventory on hand. Real-time visibility applies to inventory at hand, in transit, as well as insights on reorder quantities, and inventory costs.

Supply Chain

The supply chain management (SCM) feature encompasses a range of activities within, including procurement, inventory management, and demand planning among many. Plan with analytics on demand, review sales forecasts, effectively create purchase, transfer, and work orders. An optimized supply chain will support the needed regulatory requirements.

Manufacturing processes

With many concerns about the safety of infant and toddler products business needs to ensure that their products are maintaining quality and assurance that there is compliance with materials being used. Manufacturing companies are the main group that must ensure all product safety rules are being followed. Even processes such as labeling requirements and testing must have a thorough procedure. Consumer goods that are applicable to children are under the microscope frequently. Anxious parents put pressure on businesses to adopt business management solutions that can look after all workflows such as Suitebaby is capable of.