With expanding portfolios, warehouse space constraints, labor challenges, client order behavior, and growing cost pressures, devising the optimal beverage warehousing and delivery strategy is more daunting that ever. Overcoming industry-wide and local geographic demands requires beverage companies to expand their thinking beyond traditional methods and strategies to allow continued growth, sustain or improve customer service levels, and achieve EBITDA goals.
![AdobeStock_545815948 [Converted]](https://kpisolutions.com/wp-content/uploads/2023/02/AdobeStock_545815948-Converted.svg)
As beverage distribution companies look to optimize their cost-to-serve, the historically popular tactic to optimize delivery is performing a ‘re-route’. Re-routing is not a strategy as the sole focus is mileage reduction without considering the cost of rules used to operate. Beverage distribution companies can optimize their cost-to-serve by evaluating various factors such as fixed fleet costs, variable fleet costs, truck type and capacities, client time windows, fixed and variable stop times, drop size, and delivery frequency rather than just focusing on mileage reduction through re-routing.
KPI’s Delivery Strategy services can help in defining the optimal number and capabilities of delivery vehicles, maximizing service levels and reducing overall cost-to-serve.
Beverage portfolios today behave differently than in the past, and it is important for distribution companies to consider the behavior of current SKUs and not just the number of SKUs.
Avoiding the use of traditional methods such as space, storage, equipment, and principles is important for efficient warehouse strategies that are well defined and fully vetted.
KPI’s Warehouse Design services utilizes an unbiased methodical engineering approach supported by detailed analyses of throughput and inventory. Warehouse modeling is extrapolated to a design year, thus providing a phased ‘roadmap’ consisting of short-term and long-term physical and operational solutions.
Beverage distribution companies are looking for ways to reduce costs and use less human labor. They’re interested in advanced warehouse technology but may not consider financial justification. KPI can help companies evaluate the feasibility and potential benefits of automation technology.
KPI’s Advanced Warehouse Technology Evaluation service allows evaluation of all feasible techniques and technologies and accurately compares solutions based on quantitative and qualitative attributes, ensuring the technology will serve the business now and in the future.
"*" indicates required fields
