Cert Octavian

DIAGEO

International drinks giant, Diageo has entrusted Cert Octavian with its premium wine brands Percy Fox (responsible for the Blossom Hill and Piat d’Or ranges), and Justerini & Brooks (fine wine specialists), for several years.

Challenge
Percy Fox and Justerini & Brooks recognised that for a supply chain, or logistics strategy to be effective, it must be in line with their own corporate strategies. In mid 2004, it became apparent that both brands needed to undertake a fundamental logistics review. To achieve their commercial aims, they decided to work in partnership with their logistics provider to help them improve service levels and stock availability to customers in the On and Off Trade.

Solution
With over 20 years experience of managing logistics in the wine trade, Cert Octavian was ideally positioned to undertake the necessary strategic and operational review. As the UK's premier bonded wine warehousing and distribution company, Cert Octavian handles over 20 million cases of wine a year, for both trade and private customers.

Cert Octavian worked in partnership with Percy Fox and Justerini & Brooks to find the optimum logistics solution. Diageo were looking to streamline the businesses of Percy Fox and Justerini & Brooks, as the two operations were segmented. Alongside this, the marketplaces in which both brands operated were undergoing dynamic change. In the Percy Fox business, the growth of the large supermarkets meant a greater demand for flexibility. While in the demanding HORECA sector, there were tighter lead times and the need to provide more frequent, smaller deliveries.

Cert Octavian’s solution was to design the most cost-effective supply chain for each business stream, which involved detailed modelling of different possible approaches, as well as identifying the optimum centre-of-gravity logistics solution for both Percy Fox and Justerini & Brooks.

As a result, Cert Octavian opened a new dedicated 80,000 sq ft warehouse for Percy Fox in Leicester. The new unit was operational in a record-breaking 10 weeks and is co-managed alongside Cert Octavian’s existing Lutterworth and Leicester sites, drawing on the expertise that Cert Octavian already has in this area. All of Justerini & Brooks private client stock is now held in Cert Octavian’s unique underground cellars in Corsham, the UK’s only underground fine wine storage facility. Their entire trade stock has been relocated to a new purpose-built Service Centre in Hoddesdon, Hertfordshire, ideal for the Hotel and Restaurant deliveries in the South East and London

Results
Diageo has benefited from increased service levels to all of their customer groups, including supermarkets, major retailers, cash & carrys and the HORECA sector. Equally important has been the reduction in the cost of logistics for both Percy Fox and Justerini & Brooks. The new supply chains have delivered greater flexibility and reduced the impact on the environment by ensuring that the stock is held as near as possible to the delivery points for the different businesses.

Cert Octavian has recently extended its partnership with Percy Fox, with a renewed five-year contract. Percy Fox will continue to operate from their purpose-built Service Centre in Leicester during this time. Cert Octavian have also established a new five-year contract with Justerini & Brooks, who will continue utilising the renowned underground cellars in Corsham for fine wine storage, and remain in the new temperature-controlled Service Centre in Hoddesdon.