Distributing wine globally: financial and environmental trade-offs

Mohsen Varsei (School of Management, University of South Australia, Adelaide, Australia) (Australian Institute of Business, Adelaide, Australia)
Katherine Christ (School of Commerce, University of South Australia, Adelaide, Australia)
Roger Burritt (Faculty of Organic Agricultural Sciences, University of Kassel, Kassel, Germany)

International Journal of Physical Distribution & Logistics Management

ISSN: 0960-0035

Publication date: 5 June 2017

Abstract

Purpose

Given that currently around ten billion litres of wine are transported long distances to overseas consumers per year, the purpose of this paper is to provide a foundation for understanding the trade-offs between cost, water usage and carbon emissions in decisions about the location of wine bottling plants in a global supply chain.

Design/methodology/approach

This paper presents a case-based analytical modelling study and employs actual data from one of Australia’s major wine companies. A descriptive analytical model is developed for assessing wine supply chain scenarios using three indicators of economic and environmental impacts – supply chain cost, risk-weighted water usage and carbon emissions.

Findings

The research highlights trade-offs required when considering optimal supply chain design, and finds possibilities for reshaping a global wine supply chain in order to improve the selected economic and environmental impacts.

Originality/value

The originality of this paper lies in its analytical focus on examining the interplay between supply chain cost, risk-weighted water usage and carbon emissions in a global supply chain, which has not previously been addressed.

Keywords

Acknowledgements

An earlier version of this paper was presented at the 2015 Academy of Management Annual Meeting.

Citation

Varsei, M., Christ, K. and Burritt, R. (2017), "Distributing wine globally: financial and environmental trade-offs", International Journal of Physical Distribution & Logistics Management, Vol. 47 No. 5, pp. 410-428. https://doi.org/10.1108/IJPDLM-01-2016-0012

Publisher

:

Emerald Publishing Limited

Copyright © 2017, Emerald Publishing Limited

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