![]() ![]() “When I visited some wineries, they might only know the speed of the filling head of the bottling line but couldn’t really quantify the real costs of any down-time. ![]() The key element is recording and measuring so that activities are understood and quantified, he added. “If you’re not looking to improve, then you’re going backwards. Management consultants have different jargon for the categories, but at least in Lean Manufacturing circles they are described as time (waiting), excess processing, defects, overproduction, inventory, transport, motion and under-utilised talent.įor his take on a general approach to efficiency and management, I spoke to Panos Miltiadou, general manager of the Lucent Group - a high-end real estate developer - reflecting on his time as a plant manager with Visy Industries. Waste takes many forms but, in the end, it all costs money and it is everywhere. Imagine if you could improve your return on investment from 15% to 20% without lifting prices. This is not about cutting or sweating harder but how efficiency and workflow changes can improve costs and quality simultaneously. I have, therefore, interviewed no winemakers but astute operational managers from totally different industries and one of the best senior accountants who works with many wine businesses. The focus of this piece emerged from a conversation with a friend who is new to the wine business and observed that, too often, winemakers poorly understand costs and efficiency - certainly not to the level of successful managers in manufacturing. It has never been more important to review the operations of your business with objectivity and adapt. These two decades of pressure are now manifest in hyper competition, unsustainable grape prices and the inability to re-invest, leaving tired assets that were designed and built for another era.ĭespairing is not planning either and there are always options. The last boom in our industry was almost 20 years ago now and waiting for another one is not planning. Otherwise, someone else will eventually be sent in to make them for you. This is the starting point for making your own choices about how to thrive or even survive. With trade tariffs, travel restrictions, equipment and staff shortages, anti-alcohol lobbyists, a retail duopoly, drought, fire and smoke challenges - to name a few - it is essential to understand your business from end-to-end. With respect to the Australian wine industry, however, we are not even at that point yet as we grind through another macro-level upheaval. Mark spoke with operational managers from other industries to uncover what the wine industry can learn to thrive and survive in the current climate.Īs the world still grapples with the COVID-19 pandemic, one is tempted to hope that - in the West, at least - we may just be seeing the end of the beginning. Email: operators rarely understand the costs associated with their wine businesses and the efficiencies that can be achieved like those in other industries. ![]() Managing Director, Wine Network Consulting, Healesville, Victoria. ![]()
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