Bottling location and the global wine supply chain

dollar, water and carbon trade-offs

Mohsen Varsei, Katherine Christ, Roger Burritt

Research output: Contribution to conferenceAbstract

Abstract

Each year over 10 billion litres of wine are transported long distances to overseas consumers. Decisions about the large scale movement of wine influence company profitability and have critical environmental implications. One main environmental impact associated with the international movement of wine to markets is carbon emissions, while another issue growing in importance relates to water. This paper provides a foundation for understanding the trade-offs between cost, water use and carbon emissions in decisions about the form of distribution, bulk or bottled, and location of wine bottling plants. Given there has been little prior research into such trade-offs, our aim is to examine optimisation across alternative packaging, distribution and bottling scenarios using financial and environmental data from a wine company with global operations based in Australia. The paper makes two key contributions. First, a mathematical business model is developed for assessing scenarios using multiple indicators of economic and environmental impacts—supply chain costs, risk-weighted water usage and greenhouse gas emissions. Second, an anonymised case study helps highlight trade-offs required when considering optimal supply chain design.
Original languageEnglish
Number of pages6
DOIs
Publication statusPublished - 2015
EventAcademy of Management Annual Meeting (75th : 2015) - Vancouver, BC, Canada
Duration: 7 Aug 201511 Aug 2015

Conference

ConferenceAcademy of Management Annual Meeting (75th : 2015)
CountryCanada
CityVancouver, BC
Period7/08/1511/08/15

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Keywords

  • Global supply chains
  • Greenhouse gas emissions
  • Water usage

Cite this

Varsei, M., Christ, K., & Burritt, R. (2015). Bottling location and the global wine supply chain: dollar, water and carbon trade-offs. Abstract from Academy of Management Annual Meeting (75th : 2015), Vancouver, BC, Canada. https://doi.org/10.5465/AMBPP.2015.45