A recent survey, conducted amongst our global merchant membership, outlined some of the biggest challenges and opportunities for fine wine buyers worldwide.
The survey results revealed that second only to finding the right wine at the right price, the time and cost associated with logistics is a fine wine buyer’s biggest obstacle. Considerable admin time and money are often spent coordinating payment, logistics, storage and quality checks.
In the current economic climate, this has become an even more pertinent theme. We recently published an article on how moving wine between the UK and EU has changed after Brexit, which highlighted some of the additional inefficiencies across the supply chain and offered potential solutions.
Shortening the supply chain, effectively reducing times and costs, however, is easier than you might think. Trading in one global marketplace enables buyers to purchase from sellers around the world and get their wine quicker.
Average settlement times on Liv-ex have fallen from an average of 60 days in 2014, to just 25 days in 2020. This means that the time between an order being placed, and both the buyer and seller having what they need (wine and payment respectively), has dropped by around 60%.
Liv-ex operates globally, with the settlement of trades charged at a per-unit flat rate (with no minimum quantity). A ‘per case with no minimum’ model removes the need to consolidate purchases. By buying from hundreds of sellers in one place, buyers have only one invoice to pay and one collection point. Faster cycle time and lower admin costs allow a quicker turnover of stock and more profitable growth.
The faster that you can free up cash, the faster you can invest it in your next profitable opportunity.
To find out how more about the latest buying trends and opportunities, get you complimentary copy of our report, The Changing Nature of Fine Wine Buying.
