Econostrum | Economic News in the Mediterranean

“The product has to pay for the logistics”

Written by Francisco Navarro, CEO of Navarro Logistica on Monday, February 20th 2012 à 09:31 | Read 982 times



By Francisco Navarro, CEO of Navarro Logistica (Sabadell, Spain)

“The market for wine in Spain has developed considerably under the pressure of the economic crisis and the resulting fall-off in consumption. We have adapted to this in terms of logistics.

Up until about a year ago we had heavy traffic feeding our warehouses in Sabadell, near Barcelona, with wines originating from the regions of Logroño, La Rioja, Huesca (for Somontano), and Catalonia (Cava)... Thus Navarro Logistica operated in two types of transport and logistics: on the one hand we shipped to wine merchants and restaurants, in single units or cartons, and on the other hand to large retail outlets, for supply by the pallet of wines originating from the region of Calatayud, to the south of Zaragoza. Up until 2010 we were still transporting five to six pallets a day. But with the collapse in consumption we hardly work with the large retail outlets any more, simply because wines destined for this channel cannot bear the cost of the logistics.

Today, therefore, we are left with only the high quality wines, that is to say the wines from those producers prepared to pay the price of the logistics service that we provide, and who bring true added value to the product. This is because when we transport and store bottles in packaging units which themselves are sometimes worth five or six euros, as is the case with a quality Champagne or Cava, the product obviously requires special logistical treatment. This trend also coincides with a gradual move upmarket of Spanish wines. And this forms part of the emergence of a specialised logistics culture in Spain, most notably through the training of the personnel we employ.
Francisco Navarro (photo : F. Matéo)
Francisco Navarro (photo : F. Matéo)

The products stored in my warehouses are ‘my’ products

Navarro Logistica is part of the Astre Group, which subscribes to this selective distribution logic with its ‘Astre City’ urban distribution service, which substantiates our expertise in the handling of products like wine. This demands special training of the personnel to ensure maximum security in transport and handling.

This is also part of our corporate culture: I consider the products stored in my warehouses to be ‘my’ products; in other words, I am responsible for the capital that my clients entrust to me, not only for its warehousing, in suitable conditions, but equally for its shipment. At the same time I represent the producer vis-à-vis his client, the consumer or the shop owner. With a product like wine, this aspect of representation is particularly important. And my expertise as a logistics service provider, that’s all about my ability to ensure a degree of traceability which guarantees the security of the product.

In the final analysis this adds value to the wine, but the Spanish producers must be aware of this evolution in the market and accept that they must pay the cost of logistics, as is already the case in France. The trend is well advanced for those Spanish wines which have already reached a certain level of quality, such as Protos and Somontano; it’s up to us, the freight carriers and logistics service providers, to be up to the task of providing the service and being able to respond to the producer when he decides to integrate our value-added services into his overall product offering.”

Special issue : Ensuring the logistical safety and security of Mediterranean wines

En français : La logistique des vins méditerranéens

Special issue in partnership with Vinisud  

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