In the premium beverage space, growth can be both beneficial and detrimental. Oftentimes, as sales increase, brands realize that their Warehouse Management Software cannot keep up with demand. There are many breakdowns in processes such as inventory tracking failures, stockouts, late shipments, and reduced margins.
In high-value functional drinks, even the slightest setbacks in operation may lead to loss of profits. In order to be able to expand their operations across the country while maintaining profitability, beverage companies will have to enhance their technology infrastructure and re-evaluate their warehousing process.
The Pitfalls of Legacy Warehouse Systems in Beverage Logistics
1. Inventory Errors & Stock Deficiencies
Traditional systems are often unable to perform real-time tracking for different channels of sales (like website orders, delivery app sales, and B2B orders), causing a lack of transparency leading to overselling or building too much buffer stock that blocks cash.
2. Significant Fixed Infrastructure Expenditures
Maintaining standalone single-brand fulfillment centers across the country requires large investments in real estate, labor, and special equipment, which leads to high fixed costs even before the development of volumes.
3. Disconnect Between Channels
B2B marketplace orders are different from DTC orders when it comes to the final packing, documentation, and picking, thus preventing old systems from running both types of activity simultaneously without any conflicts.
Modernizing Liquid Logistics: Tech & Shared Space
1. The Implementation of an Advanced Warehousing Management System to Get Real-Time Insights
The use of a modern, advanced Warehouse Management System like EdgeOS will allow achieving real-time insights in all aspects of fulfillment operations. The teams engaged in operations will be able to effectively conduct batch tracking, monitor the expiration dates of goods, and analyze inventory levels.
2. Cost Savings Achieved with Flexible Warehousing
A flexible combined warehousing approach enables brands to pay only for rented storage space. Thus, they will be able to reduce fixed costs and avoid losing profits.
3. The Integration of All Channels
The modern systems connect directly to sales platforms, enterprise resource planning systems, and logistics service providers. In case of a customer order, the system will select the most effective and convenient fulfillment point.
Practical Checklist for Beverage Brands Scaling Operations
- Examine Your Present Warehousing Management System : Does your system provide instantaneous updates for both supply and direct-user sale processes?
- Assess the Fixed Costs versus Variable Costs : Do the long-term property leases affect your profit margins?
- Monitor the Full Cycle of Deliveries : Is the cycle from production to the delivery of the final product to the consumer transparent?
- Simplify the Control of Lots : Can your solution administer the batch numbers and expiry dates with ease?