The Company is pleased to report that the WINEDEPOT is expanding its existing product offering by launching a new fulfillment service called Direct-to-Depot (D2D).
Unlike the existing End-to-End (E2E) fulfillment service that relies on all customers inventory being handled into and processed through WINEDEPOT’s Bulk Storage facilities, the Direct-to-Depot service allows customers to deliver their inventory directly into depots of their choice.
The key benefit that this provides customers is that it’s considerably cheaper than the E2E solution, making it very attractive for larger scale wineries that have an existing wholesaler, distributor or 3PL provider who are capable of managing the replenishment of the inventory held in our depots.
It also works very well for smaller and medium sized producers whose winery location and customer base is generally in one state. Rather than ship their inventory to our Bulk Storage Centres only to have it shipped back to their local depot, they send their inventory directly to their local depot. These producers would then use the E2E model to service their customers located in other markets.
For example a winery located in Margaret River sells 65% of their wine in WA and the 35% in other states. They would be best using the D2D model to service their Perth customers then shipping the remainder of their inventory to our Bulk Storage facilities to service their eastern seaboard customers.
The D2D model also works well for distributors and importers who typically have a strong presence in just one state and do not need to utilise WINEDEPOT’s entire depot network.
DW8 CEO Dean Taylor is excited about the new service and believes it will significantly expand WINEDEPOT’s addressable market by making the platform more suitable to the broader wine industry. In particular the 2,000 or so wine distributors that operate in Australia.”
“Up until now, our focus has been mostly on providing a solution for the needs of Australia’s small and medium wine producers. However, our partnership with Casella has provided us with valuable insight into the needs of much larger enterprise level customers.”
“The introduction of our Direct-to-Depot service makes it much easier for us to engage with large multinational wine businesses like Treasury Wines, Accolade, LVMH and Pernod Ricard who already operate their own logistics networks.”
“Offering a solution that caters for the major players and distributors should allow us to dramatically increase the number of products we have on offer via our B2B Marketplace when it is launched later this year. Therefore the launch of this service is strategically very beneficial.” Taylor has confirmed that a number of existing customers including Casella Family Wines are already testing the Direct-to-Depot solution and based on feedback received so far he expects about 50% of all new customers will use the new service when it is officially launched in July.