Issue link: http://digital.copcomm.com/i/288975
april 2014 / the tasting panel / 129 to each state on an as-needed basis. It's the first dramatic change on the operational supply side of the industry since Prohibition." For domestic and international producers of wine and spirits, rather than shipping products to multiple ware- houses in smaller, costlier less-than-truckload (LTL) ship- ments, SSC centralization enables the supplier to consolidate loads into lower-cost-per-case full truckload (TL) shipments to one, central distribution facility. From there Southern will re-distribute to its state markets as needed. The center is even working with international wine and spirit brands, bringing them directly from the country of origin into its new warehouse, effectively eliminating certain domestic markups that result from shipping from one domestic warehouse to another—a savings benefiting all tiers of the supply chain. "We're constantly looking at how to better serve our cus- tomers and suppliers, and this is a bold step demonstrating Southern's superior value add to the Three Tier System. This is a new distribution model only Southern can achieve given its broad network of 35 state markets and unparalleled volumes in excess of 100 million cases of product delivered in 2013," said Burg, before I was taken on a tour of the facility. We were joined by Mel Velez, Southern's new Vice President of Purchasing and Logistics. Velez brings 22 years of procurement experience in a variety of leadership roles for businesses like AT&T and Citrix Systems, Inc. Also joining the team is Sami Salman, an industry veteran who boasts a decade of lauded work with Bacardi, the largest privately held, family-owned spirits company in the world. Salman joins Southern as the Senior Director of Purchasing under Velez. As we toured the dedicated facility, Stephanie Silvestre, Senior Director of Supply Chain Transformation, talked to me about the uniqueness of the building and the fact that there hasn't been a wholesaler with enough scale to pull off this kind of operation. "Every case in this building is owned by a specific Southern division that will eventually sell and deliver it," Silvestre explained, meaning the facility operates like a holding center. To ensure the success of this new venture, Southern has thoughtfully brought together an all-star team—with Silvestre, Velez and Salman focused on transforming the relationship between wholesaler and supplier partners to enhance and modernize the industry. Since its opening, the warehouse has already surpassed expectations, moving over one million cases in just the first few months of operation. Plans for another location are already in the works for the United States and possibly Europe. Burg isn't shy about his excitement because he sees the immediate value the new SSC will bring to Southern's valued partners. "We are working to create better synergies of placement and programing for all of our suppliers and customers—both in the on- and off-premise channels," he said as we passed an imposing set of monitors displaying the day's in-bound and out-bound shipments. Burg concluded, "It's all about getting the most out of each relationship and sharing in the benefits." This graphic illustrates the change from a many-to-many supply chain model to an enhanced model where the SSC sits between the producer/ supplier and the final DC. Certain applicable products get purchased into the SSC in bulk and then redistributed to the DC's in the field. Fast- moving, high-volume products retain the more efficient path of direct from producer to DC. IMAGE COURTESY SOUTHERN WINE AND SPIRITS "It's the first dramatic change on the operational supply side of the industry since Prohibition." TP0414_102-132.indd 129 3/21/14 2:54 PM