THE IMPORTANCE OF SUPPLY CHAIN TECHNOLOGY IN THE BEVERAGE INDUSTRY
INTRODUCTION In every organization, supply chain management is crucial to the success of the business. It helps companies to have a regular, optimized flow of products and materials that allow it to compete in the rapid, modern, digital business environment. To succeed in supply chain management, business the world over have adopted supply chain technology and software that not only help better track and monitor the movement of goods but also help automate reporting processes and combine data with the rest of the company’s software suite.  While many people associate supply chain with manufacturing or even transportation-specific industries, one such industry that relies heavily on supply chain management is the adult beverage industry, which not only sees massive distribution all over the world but also demand surges on many of the world’s holidays. Brewers, vintners and distillers of all sizes rely heavily on supply chain tech to keep their business operating and growing in an ever-changing market. While supply chain management technology for non-alcohol industry operations is a huge player in the business world, this article will delve into the use and benefits of supply chain technology for alcohol industry operations and growth.
REDUCING OPERATING EXPENSES Supply technology relies heavily on tracking, data flow and automaton to help beverage companies be more efficient. The benefits of these efficiencies help the beverage industry to reduce operating costs from both a production and purchasing standpoint. Â It is important to note that in the beverage industry, rarely does all production happen in one place, meaning that the brewing/distilling of the product and bottling are normally done in spate locations, meaning the calculated shipping is needed to ensure that quality product can move rapidly from production to bottling. Optimized loads, transportation routes, and even overall timing can ensure that time and resources are not wasted.
CONT‌ Additionally, for those that may produce and bottle in the same facility, not only is sourcing raw materials a necessity but inventory and storage space play a vital role in the supply chain. With supply chain technology, production flows and material arrival can be optimized and automated to ensure that companies are getting the most out of their production space and not wasting time and resources housing material and products for too long. All of this optimization allows for a smarter flow of goods and materials, allowing businesses to reduce waste and cut costs.
IMPROVING FINANCIAL STANDING Along with a reduction in operating expenses, supply chain management software can help the overall financial standing of the company, allowing managers to more accurately control the supply of products and materials. As one can imagine beverage producers have a large number of fixed costs associated with their many assets such as vehicles, plants, machinery and warehouses. Supply chain tech can help managers maximize the efficiency of these assets allowing for them to increase productivity while reducing unnecessary wear and tear on equipment. Additionally, with greater efficiency and a faster flow of products to customers, supply chain technology ultimately helps improve the cash flow of the business making it more financially stable.
GREATER TRANSPARENCY AND EFFICIENCY Like all industries, the beverage industry relies on many different external companies to work together to create a finished product. Whether it is purchasing aluminum and glass for containers, or wheat and grains for brewing and distillation, there are many moving pieces that need to come together to ensure success. Supply chain technology for beverage industry operations has helped improve transparency in the supply chain and allowed both producers and consumers of raw material to improve their symbiotic relationship and overall efficiency.
CONT‌ For example, to ensure that payments and deliveries are done properly many companies have integrated wireless management technology into their supply chain operations. These wireless management systems remove human errors and ensure that proper funds are issued for the correct amount of material within the correct timeline. This automation, which continues to advance with the help of technologies like blockchain and radio-frequency identification (RFID), helps enhance and expedite regular business transactions to ensure that supply chains remain intact from sourcing the raws material to selling it on store shelves. Aside from improving supply chain flow currently, captured data from these transactions can be stored and analyzed to find any discrepancies in the supply chain or to find even greater improvement in the future.
SOURCING THE RIGHT SUPPLY CHAIN TECHNOLOGY Supply chains are complex, intertwined systems that are crucial to a business’s success. However, with supply chain management technology, the supply chain can be simplified and even automated to help the beverage industry continue to excel. When looking to implement supply chain tech into a company, it is important to perform due diligence and source a solution that is right for the company’s specific needs. Beverage companies, or any company for that matter, should ultimately turn to custom software development for their needs. Custom software developers can either build a solution from the ground up that fits the company’s exact needs or modify commercial off-the-shelf software to integrate with the current software suite. This is imperative as data must be able to flow freely between the supply chain software and the other systems to ensure success.
CONCLUSION For companies looking to find custom developers, it is recommended that they use developers with both experience in supply chain software as well as experience in the respective industry. This is where Chetu comes in. Chetu is a noted custom software developer with over 20 years of experience in developing both supply chain solutions and has in-depth knowledge of the beverage industry. With the modern solutions that Chetu can provide, businesses throughout the industry can drastically improve their supply chain efficiency.