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TWE Formed a Joint Venture with Trebuchet Logistics

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Core Tip: Treasury Wine Estates(TWE)has formed a joint venture with Trebuchet Logistics to manage the company's Australian domestic and export warehousing,distributi

an Australian First in Wine Logistics

Treasury Wine Estates(TWE)has formed a joint venture with Trebuchet Logistics to manage the company's Australian domestic and export warehousing,distribution and logistics requirements under an innovative fourth-party logistics(4PL)model.

TWE is introducing the new approach to wine logistics,warehousing and distribution in Australia.As a result,a new national distribution centre(NDC)will be built in Penfield,in the northern suburbs of Adelaide,and a series of satellite state warehouses will be established and managed via Trebuchet Logistics.

The first of its kind in the Australian wine sector,the 4PL model involves Trebuchet Logistics contracting third-party service providers to manage all elements of the supply chain including the handling,storage,transport and IT requirements to deliver wine to customers and consumers in Australia and to export markets.

Tim Ford,TWE's global director logistics,said:"Trebuchet has been our 4PL partner in the Nordics since 2008.It has demonstrated a unique capability in establishing collaborative logistics networks in alcoholic beverages and has proven capability in linking multiple manufacturers and 3PL service providers,through Information Technology systems and management processes."

Trebuchet Logistics will independently manage the end to end logistics network from raw materials through to domestic and export customer deliveries,for all TWE Australian-produced and imported products.The network will be designed to store and distribute wine in appropriately controlled environments to preserve product quality and freshness.

"This approach to logistics is another part of our strategy to optimise our global supply network.We are reviewing and improving our entire logistics networks and introducing innovation,investment and leading practices to ensure our premium wines reach customers and consumers in the quality and timeframes expected,"added Mr Ford.

Knut Oksby,one of the founding partners of Trebuchet Logistics,has moved toAustraliato implement the 4PL model and manage the joint venture operation.

"I'm really excited to continue our relationship with TWE and introduce a new fully integrated supply chain management model to the Australian wine industry.We have seen how this model delivers efficiencies and value to all participating companies in Sweden,Finland and Norway,and we are keen to develop this business model in Australia."

The new 4PL model will replace TWE's existing domestic and export warehousing and logistics service contracts with CUB and MacKenzie Hillebrand,which expire in the next 12-18 months.All logistics services and the 4PL management model will be fully operational by April 2014,with a phased implementation beginning July 2013.(920)

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