The UK government recently announced significant reform to the Warehousekeepers and Owners of Warehoused Goods Regulations (WOWGR). For warehousekeepers, this likely means some disruption in the short term as the industry adapts. This reform is more than an administrative tweak – it represents a new era of compliance. It looks to put the industry on a new course of digitalisation where the use of spreadsheets, disparate legacy systems and unverified paper certificates could soon be a thing of the past. As a result, warehousekeepers are assessing their technology systems and operational processes to ensure they provide the full level of transparency and data integrity required to account for every aspect of barrel management from location to ownership, status and movement, at any given time, in order to be compliant.
What does WOWGR reform mean for the industry?
WOWGR reform will have significant implications, particularly for third party maturation facilities where the expected regulatory changes are driving the need for greater transparency and accountability in the storage and management of casks. Data integrity has never been more important.
Rob Hollands, CEO of Proofworks, discusses how WOWGR reform impacts the entire whisky ecosystem. “Whilst there’s been talk of changes to the WOWGR for some time, this is still a very quick reform, with some significant changes for bonded warehouses to prepare for, implement and manage.
Greater transparency and assurance of ownership are benefits that will be welcomed widely, and the new year provides the perfect opportunity for warehouses to review the tools and systems that will support them now and into the future.
The introduction of new regulation and compliance requirements can be the catalyst for modernisation and digital transformation, as we’ve seen in other industries.
Moving away from paper-based records and other less suitable tools, like Excel, and onto platforms which are specifically designed to manage bonded warehouse operations, provides a real opportunity for better data, capacity planning, reduced administration and risk of errors.”
Jacqui Hanna of The Foundry Vault, talks about how they are preparing for WOWGR reform, “We have taken early steps to adapt our processes and systems to put us in the best position possible to navigate the challenges posed by the reform. Implementing Proofworks is key to this. WOWGR reform presents both challenges and opportunities for third party maturation facilities like ours. By prioritising data accuracy, operational integrity, and customer trust, and underpinning our entire operation with the Proofworks platform, we aim to mitigate risks and enhance our service offerings in the evolving landscape of the Irish Whiskey Industry.”
What does WOWGR reform mean on an operational level?
WOWGR reform means warehouses will carry even greater responsibility to maintain accurate and up-to-date records for all the casks they store.
Issues arising from collectors and cask owners being misled about the existence and storage of their casks, with outdated and easily counterfeited paper certificates, highlight the need for improved communication and transparency between brokers, owners, and warehouses alike. Warehouses will need to ensure that their systems are capable of accurately tracking and managing individual casks to protect against these potential liabilities related to misrepresentation.
Jacqui Hanna of The Foundry Vault, says “When we take responsibility for casks in our warehouses, the information held on them varies significantly from each distillery to the next. There is often a discrepancy in the level of data provided as well as missing fields of data. Each distillery uses a different system, meaning nothing is standardised.
When barrels arrive with us, we start by processing every one using the Proofworks platform to assign each cask a digital identity (ID) with an associated QR code. This provides a permanent record of the key data associated with each item. Everything from its origin, age, ownership, ABV to location in the warehouse. Every crucial piece of information is collected, stored and tracked on the platform throughout the asset’s entire lifetime. Data is recorded on the blockchain and provides an audit trail for anyone involved to see.
For cask owners, this means they are issued with a ‘Digital Deed’ that proves ownership of their cask, as well as detailing its provenance and location – there can no longer be any doubt that what they have bought is held with us. Managing agents have full transparency of their stocks at any time reducing requests to warehouses for updates on impending spreadsheets, monthly data records and changes in deed holders.”
How digitalisation helps warehouses prepare for WOWGR reform
Rob Hollands, CEO of Proofworks, says, “We’ve built the Proofworks platform in partnership with distilleries and warehouses, such as The Foundry Vault, to specifically address the unique needs of the industry – from asset management and maturation optimisation to customer ownership and compliance. Tools that are genuinely helping to bring greater efficiency and transparency across the supply chain.
Digital Deeds are one of the key features of the platform and give everyone a trusted record of ownership. The deeds reflect the unique digital identity that we assign to every asset. On a practical level, this makes it easy for anyone on the warehouse floor to scan the QR code on any cask and instantly ‘check in’ to that asset to get the full picture, not only its ownership details but its entire history, and perform actions, such as a reguage.”
