Retailers are in the lower strain of the wine commodity chain, which requires them to associate and negotiate with upper strain suppliers like domestic or foreign wine chateaus, international wine traders to be able to provide sufficient and diversified products choices for consumers in the region.
Inventory cost is one of the most important cost that retailers must pay close attention to in order to reap profit. Geographical factors play significant roles in this process. For specifically controlling the inventory of wine in the retailer markets, precise delivery process estimates for each regional, domestic and international are extremely important to save costs and maintain inventory turnover ratio. For example, a wine retailer in Los Angles, if they offer products manufactured in Napa Valley, their inventory storage will be much less comparing to the products from Argentina and Chile, which takes 60 days on average for delivery, and products from France and Spain takes even longer(Merrill Douglas). In term of this situation, retailers should carefully consider the geographical condition, transportation modes for inventory delivery to maintain suitable inventory level. Also, especially for wines produced by world-wide famous brands, usually with relatively high value, makes even more sense not only consider the delivery, but also research regional market trends, to avoid keep unnecessary inventory in the house.
Except focusing on the decreasing inventory costs, wine retailers usually need to have upper-end furnished store, which provides premium shopping environment that can help increase sales, and meantime offer its employees better working condition compare to many other alcohol retailers wine retailer destination. In the local community, this kind of store setting should be able to gain reputation for wine brands retailers carry and even build up some certain wine culture for those regular consumers. . It is also significant for retailers to pick a location with easy transportation access, parking availability to offer consumer convenience which is one of the evaluation standard by consumer choosing favorite Besides pursuing financial profit, retailers maintain an extremely important social responsibility to make sure they sale alcoholic beverage to consumers allowed by law. Again, thinking about the setting in United States, only age 21 and above are able to purchase alcoholic beverage. If these retailers are not able to perfectly perform under the law, it has high possibility to cause negatively social effect with potential unethical behaviors by under ages drinking alcoholics. With this sense, while retailers really caring about its increasing revenue and decreasing its operational costs, they should never break law to sale the products to under age just for capturing revenue.
Douglas, Merrill. “Cheers! Managing the Spirited Supply Chain.” – Inbound Logistics. N.p., n.d. Web. 27 Apr. 2015.