Is It Fixable?
July 16, 2016 § Leave a comment
This week saw a first from the BC Liquor Distribution Branch; an apology letter.
A letter was send to every wholesale customer of the LDB. Given that they have a monopoly on all imported product and spirits, this mean close to 12,000 businesses was saw this letter.
The letter starts with an apology for all the shorted orders and out of stocks that have recently plagued the LDB Wholesale Centre. Over the last 3 years fulfillment rates have dropped to 91% yet overall revenues have grown to over $3B. What this means is that $300M in demand has gone unfulfilled and lost to the province’s general revenue.
The letter goes on to name a few causes. Technical, which I totally understand given that they are using databases that were old in 2009 to run $2B worth of orders through, and capacity. The first of these is easily solved and they are in the process of doing so, however the second is a little harder to solve politically although dead easy operationally.
Operationally you would simply lease more warehouse space or trucks, so why is this not happening now? Who doesn’t want an extra $300M in the coffers each year?
The answer is that the government would have to take legislative action to allow non-LDB distributors to deliver directly. All of a sudden this isn’t a revenue issue, it is a political issue, specifically political capital issue, and that is why it hasn’t been solved.
It is sad and you can’t blame the people working at the Wholesale Centre, they are doing what they can. The blame rests on the shoulders of politicians who can’t seem to see the forest through the trees, no matter what side of the political fence they sit.
Solving this issue will take bi-partisan leadership which is something that BC has lived without for decades.
This is just my opinion so if you have other solutions then by all means post them here.