ASX-listed beverage investment vehicle Digital Wine Ventures has actually tapped Australia Post for its backend IT systems, distribution network and warehousing launching what appears to be a vertically integrated e-commerce and logistics platform.
Targeted at servicing Australia’s $6 billion white wine industry by connecting manufacturers, suppliers, importers and merchants, the digital plonk shop will be serviced out of depots hosted within Australia Post’s current circulation centres in the 4 biggest capital cities.
It’s a major new deal for Post after it tacitly throttled back promotion surrounding its huge digital identity push in favour of a fresh Sino-heavy export focus under CEO Christine Holgate who formerly ran vitamin factory Blackmores.
Under the Red wine Depot deal orders will put straight into Australia Post’s fulfilment spin-off Fulfilio, which takes care of the backend IT systems and facilities, plus staffing and warehousing to reduce the costs and time of shunting data from system to system.
“There’s no point in reconstructing infrastructure that currently exists. Our role is to make it more effective by providing an innovation platform that connects the essential stakeholders,” Digital Red wine Ventures president Dean Taylor said in a statement to the market.
“Each depot will hold a really broad series of providers’ inventory on consignment, which can be accessed by a variety of sales channels.
“As orders are processed through our platform they are routed to the depot closest to the delivery address where they are chosen, packed (by bottle or case) and drop-shipped to the end consumer.
“Depots are then replenished instantly on a bi-weekly basis from WineDepot’s local bulk storage facilities on behalf of suppliers.”
AusPost has signed on to deal with the business for the next 5 years, with a preliminary exclusivity period of 12 months.
While it’s not providing away too much around it’s IT outsourcing capability, the government-owned business is definitely raising a glass to its newest win.
“Australia Post is excited to be able to provide services to White wine Depot that will assist increase range and accelerate delivery times – benefiting both those that make wine, and those that enjoy consuming it,” an Australia Post representative informed iTnews.
“Australia Post’s continuous investment in technology, fulfilment and delivery infrastructure indicates it can support innovative organisation designs like Red wine Depot.
“As customer expectation for shipment options and speed boosts, White wine Depot is well positioned to succeed by leveraging Australia Post’s national fulfilment and night delivery network.”
Nevertheless, this isn’t AusPost’s very first venture into vertically incorporating along distribution lines.
Under its previous handling director Ahmed Fahour, the Post launched fintech offering dubbed AlphaCommerceHub that passed through the intricate landscape of payments, analytics, and fraud mitigation.
This content was originally published here.