The Impact of Demand and Supplier on Wine's Supply Chain Performance

Abstract

The wine industry is one of the most important income sources in the autonomous community of La Rioja in Spain, and this report is aimed to identify and measure the effect of the latent variables such as Demand, Suppliers, Quality and delivery time on Financial profits for wineries. Latent variables were integrated by the observed variables, and a questionnaire was given to 64 wineries in La Rioja, Spain. A descriptive analysis appears for indicators and latent variables were related using structural equation modeling. The results indicate that there is not a direct effect between an efficient Demand forecasting and Suppliers on the Financial profits for wineries, but there are indirect effects through a Quality and delivery time, the most important variable being analyzed. Managers in wineries must focus their attention on Quality and delivery time to costumers, while having a direct relationship with suppliers. Practical Applications Winery managers must make an effort to have a fast prediction of variants in the forecast and adjust the order to suppliers and production process so that the supply chain can be more agile and with quality and timely deliveries with the final result being the company's financial profit. An agile supply chain with quality products seems to be insignificant for managers in wineries.