Tomorrow's Wine Industry Leveraging Technology to Improve Quality and Business Wexford Systems, LLC
Tomorrow's Wine Industry Leveraging Technology to Improve Quality and Business
Wexford Systems, LLC
Improving Your Business
1Mitigate risk via 24x7 monitoring of quality of wines and spirits2Reduce uncertainty for you and your clients345Protect the reputation of your vineyards, wines and spirits
1 Reduce loss – ultimately financial loss2 Make a better product more predictably3 Increase efficiency4 Beat your competition
5 Do it better, faster, and with less expense © Copyright 2016 Wexford Systems, LLC 2
For the Wine Industry this means...
Increasing the likelihood of delivering a superb bottle of wine to the table of fine diners.
Increasing the likelihood of winning satisfied, enthusiastic, repeat customers.
Cross-selling additional bottles of wines to your now very satisfied customers
Setting the Stage: A Scenario
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6Sommelier brings a fabulous bottle of wine to the table.78Sommelier opens the bottle.
6 The wine is bad...! 7 The outcome...?! 8 The loss...?!
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Setting the Stage: A Scenario (cont.) 9Sommelier is embarrassed. 10Restaurant is embarrassed; their reputation is tarnished.
9 Restaurant is not reimbursed for loss. What's loss to broker or distributor? Credibility?
10 Loss to vineyard's reputation? Credibility with distributor and restaurants?
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11Host of dinner is embarrassed; he's angry; does the customer return?
Your Challenges and Objectives...
Ensure quality, consistency, predictability, timeliness Identify bad bottles of wine, upon receipt from Chateaux,
brokers or wholesalers before they're sold or before the customer sees it.
Identify where the bottle (or cask) went bad.
11 How to mitigate these risks? © Copyright 2016 Wexford Systems, LLC 6
Identify how the bottle (or cask) went bad. Reduce the number of bottles that go bad. Improve the quality of your wine. JIT-Green Supply Chains Audit Trail
How Do You Achieve That Objective...? 12Everyone is talking about sensors
12 A solution is a complex organization, structure, design, architecture of elements.
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13Everyone is talking about the Internet of Things (IoT) 141516The sensor is the tip of the iceberg.
13 Eliminate risk at each step in the process.14 Collect data, monitor, ensure quality control (QC). 15 Ensuring continuity and consistency across the whole supply chain. 16 Unquestioned trust between entities across the supply chain.
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Some Context and Details for the Wine Industry Wine vineyards require ~7+ years of growth for the required maturation of their vines to produce a
quality, superior harvest..., With high sugar content to transform into the right alcohol content, yielding more income per ton. All vineyards are 100% dependent upon exterior factors. Human management husbandry. Constant, consistent Spring-Fall, East-West sunshine at the right angles throughout a large part of
the day. The right amount of rain waters, evening mist, fog, moisture (enables grapes to grow their internal
pulp which is the key to the creation of all wines). A combination of rich quality soils, with traces of limestone out-cropping's, limestone pebbles mixed
within the alluvial soils provide the required nutrients for the development of hi-quality, superior, grand crux wines.
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The microscopic particles of diluted limestone, calcium are mission critical chemical ingredient off-set neutralizing inherent tannic acids of the grapes exterior skin.
As they are absorbed from the earth via the vines subterranean root systems, which extend 6.0’-12.0’ into the soil.
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Aspects of Your Industry All aspects of industry operations for wine, beer, spirits Planting, monitoring growth, water drip lines, PH levels of soil Forecasting most efficient harvesting times Harvesting, QC, chemical testing for composition, sugar levels, PH levels of wine Blending, tasting, brewing, distillery blending, aging in oak casks, Master blender’s human smell, taste testing, Bottling, storage, distribution, global
shipments to... Brokers, wholesalers to... Upscale, high-end country clubs, bars, restaurants, individuals
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Cost accounting Asset management
How Do You Do This...? Sensors provide... Near real-time data capture, monitoring, analysis and feedback
to your business operations Near real-time decision making or adjusting operations to
achieve your objectives
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Still need skilled, expert, knowledgeable, experienced human beings, sight, small, taste but...
Technology can aid, augment humans and even do some things better, faster and more consistently...
Potential Uses of Sensors Monitoring rainfall, pH levels of soils Feed into drip system, increase efficiencies Forecasting the most efficient time to harvest – best time to pick grapes based on
sugar content
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Measuring chemical composition, sugar content of grapes, pH level of wine Blending, tasting, brewing, distilling, aging within high quality oak casks Sensor in oak casks to measure, monitor sugar level, alcohol level, tannic acid level
and off-setting pH levels. Sensors inside each bottle are designed to measure, monitor and record the quality
and integrity of the wine from the chateaux, to the transportation, to the warehouse, to the distributor, to the importer, to the buyer and ultimately to the customer.
This Is Feasible Today We can do this for any kind of spirits, liqueur, wine, beer, etc.
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Using sensors..., Which are everywhere. Technology has advanced. Much research and engineering is being done. Part of the age of Big Data and the Internet of Things (IoT). Is this just a fad? What does it take to really leverage this “technology”?
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Sensors In the Wine Industry
Add data from the article that Jay sent me.
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Leveraging Sensor Technology17The vineyard's wine expert has a cold and can't smell. What
happens?18The sensor is more consistent, more reliable, more predictable
17 Volume and numbers – large numbers of sensors are inexpensive, pervasive, responsive, precise and automated.
18 Humans with such advanced and developed olfactory skills are rare and expensive; few humans can do this work.
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A Favorable Outcome Scenario
Revisiting the scenario at the beginning of the presentation (slides #4 and #5)... Your sommelier suggests a wine to his dinner party. The sommelier knows the bottle is good because of the sensor data he reviewed as
he selected the bottle, prior to bringing it out to the table. Your customers are very happy. The restaurant is happy - not embarrassed! The “Maître d' ” receives information about all food ordered, associates it with wine
and spirits consumed. The restaurant builds a customer profile for future visits (details to be discussed). Customers feel well-respected and well-treated
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Customers are flattered by the experience and the personal touch
What Is Your Risk...?
If you serve a bad bottle of... VINEYARD PRICE PER BOTTLEScreaming Eagle Winery $500,000 USChateau Cheval Blanc $304,375 USHiedsieck $275,000 USChateau Lafite $232,692 USChateux Margaux $225,000 USChateau Mouton Rothschild $225,000 USPenfolds $168,000 USChateau Lafite Rothschild $160,000 USRomanee-Conti $123,900 US
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Chateau d'Yquem $119,000 US
What Is Your Gain...? 19If you serve a superb bottle every time...20Greater quality control (QC), consistency, predictability
19 Beating your competition 20 Reduction of losses Greater efficiency Greater profit....
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21Repeat satisfied customers Improved reputation
The Potential In Your Industry...COUNTRY YEARLY CONSUMPTION **France 43,633,000
Italy 41,580,000
Spain 33,393,000
USA 18,740,000
Argentina 15,473,000
China 13,000,000
Australia 11,090,000
Chile 10,463,000
21 Increased market share © Copyright 2016 Wexford Systems, LLC 21
South Africa 9,665,000
Germany 9,661,000
TOTAL MILLION HL 187,864,600** Million Haut Liters (MHL)
The Potential In Your Industry (cont.)...COUNTRY YEARLY CONSUMPTION **France 55
Italy 55
Portugal 50
Switzerland 55
Denmark 38
Germany 38
Argentina 38
Netherlands 31
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Australia 29
UK 29
TOTAL LITERS PER PERSON PER ANNUM 408** Liters per person per annum
How Do You Go From Vision, Concept, Idea...
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To Realization...?!
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What Does It Take...?! More than just sensors... A complete well thought out, planned “end-to-end” system. Each application is unique despite conceptual similarities. The ability to see holistically the totality of the whole business,
industry, pragmatic considerations, practical constraints, realistic goals and roadmaps to incremental progress.
Who Will Do This Work...?!© Copyright 2016 Wexford Systems, LLC 27
Who will build a solution leveraging the right combination of technology?
Not the sensor designer Not the electrical engineer Not the programmer Not the chip manufacturer
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Who Will Do This Work (cont.)...?!22Seasoned strategic visionaries who understand the business,
industry, applications, finance. 2324Strategists who can create viable business models.
22 Enterprise architects who understand the integration and interdependencies of technology, business, strategies.
23 System architects who can create solutions from an enterprise architect's vision.
24 Individuals who can successfully put the pieces together. © Copyright 2016 Wexford Systems, LLC 29
The Wine Industry
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Benefits of Sensors and the IoT 25Benefits in each area of operations across the entire industry. 26Benefits in every stage of the supply chain. 27Integration across all systems of the industry operations.
25 Greater insight into the full range of industry operations. 26 Tighter span of control over all operations. 27 Faster response times to crisis situations based on sensor-supplied
data.
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The Viability of Sensors and the IoT 28The applications are virtually limitless. 2930Applications exist in all industries.
28 Technology is advancing rapidly. 29 The solutions are as limitless as the creativity of the technologists
and strategists. 30 The sensors themselves are simply the tip of the information spear.
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Chaos = business failure
34
© Copyright 2015 Vartan Piroumian
The Vision of the IoT Sensors, data collection Monitoring Big data Statistics Forecasting Trend analysis Demographics Quality Control (QC) Efficiency
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The IoT Is... Sensors End-to-end systems architecture Standards Solutions A new generation of possibilities for the organization and
management of data and businesses, people and processes Order out of chaos
Wexford Systems Is...© Copyright 2016 Wexford Systems, LLC 36
Jay LaTournerie - Economics, Finance, Business Development,
Consulting
● Vartan Piroumian - Software Systems Architecture, Enterprise Architecture, Consulting, Strategy (business and technology consulting)
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Wexford Systems Industrial References
Wexford Systems marquis projects Real system implementations Recommendations
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Reference 1: EZ Pass New York City MTA
TBTA EZ Pass 1988 - 1990 $20 million program 50-year old public authority Problem: loss of 30% receivables due to internal theft = $180 million per annum Recommendation: EZ Pass system at cost of $20 million installed in 2 years Outcome: installation of EZ Pass system eliminated 100% of historical internal and
external theft 9-1 return; break even after 6 weeks
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Core enabling technology was sensor-based architecture Concept now utilized/installed across the United States and Canada, bridges, subway,
freeway toll roads, turnpikes, etc.
Reference 2: Sea-Land-Air Transportation31Monitoring sea-, land- and air-based container transportation. 32Problem: loss due to internal and external theft of physical containers (ship “conexes”
and air transport “igloos”)
31 Recommendations made to Swiss Rei and Lloyds of London re-insurance companies to reduce insurance payout liability.
32 Recommendations made to major sea-land-air transportation and shipping carriers to improve ability to track, improve logistics, improve security, improve accounting and accountability and reduce liability, risk and insurance claims.
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33Recommendation: installation of complete system built around sensors to identify, account, track and monitor containers.
Reference 3: Fuel Management System34Analyzed and recommended solution to largest sand-gravel producer in Texas and
Oklahoma
33 Outcome: lack of interest at the time. Losses, liability, inefficiencies, security risk still extant today.
34 Recommendation: installation of sensor-based fuel management system (FMS) designed to monitor 52 10,000-gallon fuel tanks in near real time
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35Problem: internal theft and “shorting” of delivery of fuel; 30% of all fuel delivery was stolen
35 Outcome: eliminated 100% of theft; saved $27 million per annum in historical fuel losses
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Reference 4: New York City Public Housing Authority Problem: No monitoring of fuel delivery of #2 heating oil for public housing. Recommendation: fuel management system (same system that was successfully
installed in Texas) Outcome: housing authority chose to forego implementation (they are still losing
money 12 years later).
Wexford Systems Capabilities...36Advisory
36 Creation of business vision, management thereof © Copyright 2016 Wexford Systems, LLC 43
37Consulting38Conceptualization3940Problem Solving
Why Wexford Systems? 41Proven track record with sensor-based systems.
37 Production of viable business models 38 Creation of development plans 39 Management of ventures40 Overseeing operations 41 Understanding of state-of-the-art technology
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42Ability to create targeted business solutions 43Understanding of the business proposition4445Understanding of the right business model
Example for the Wine Industry?
42 Understanding of strategy – the integration of business and technology– applying state-of-the-art technology (Wexford provides the “how”)
43 Realization of solutions 44 Realized better, faster, at less expense 45 Experience
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Existing sensor technology used by the wine industry The solution involves more than the sensor technology Other points...?
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THANK YOU...!
Merci mille fois....Thank you very much....
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