Improving the labeling processes of an Argentine winery by reducing time to shipment

Wineries that export their wines are constantly striving to reduce shipping time and associated costs for the bottles of wine they sell to distributors. With diverse distributors, distinct order sizes per varietal, and alcohol labeling regulations which vary from country to country, many wineries are confined by the labeling process. Up to half of the total time required to ship the order can be attributable to the labeling process, as wineries must wait to order labels until an order is placed. Additionally, due to variability in label regulations between countries, many wineries order labels for each order instead of in bulk. This practice leads to increased costs per label. This project focuses on improving the labeling process at an Argentine winery, Alta Vista, with improvement being defined by reductions in the time between orders being placed and shipped and the labeling costs. Probabilistic modeling and Monte Carlo simulation was used to develop a forecast of how many labels per varietal would be required each year. These forecasts were used to recommend preordering the proper number of labels, thereby reducing the time from order to shipment to 12 days (a 42% reduction).