Maximizing Profit Margins During Beverage Season
Tips for Manufacturers and Distributors
The Impact on Supply Chain
The beverage industry has a significant impact on the supply chain during the summer months. Beverage season, which typically runs from mid-late May to mid-July, brings with it increased demand for both alcoholic and non-alcoholic beverages. The high demand for these products results in a capacity crunch in the freight industry, with carriers dedicating capacity to meet the demand. As a result, refrigerated transportation options become challenging to find, and spot-market rate increases are likely to occur as capacity moves with the demand of seasonal sales.
Challenges For Manufacturing and Distribution
For manufacturers and distributors in the beverage industry, it is essential to prepare for the impacts of beverage season on the supply chain. Poor planning and execution can lead to out-of-stock rates, which can cost beverage brands significant amounts of money. The volatile nature of the supply chain during beverage season means that manufacturers and distributors must be flexible and adapt quickly to changes in demand and capacity.
Beverage season is especially critical for the soft drink category, which is the leading category in the industry. PepsiCo, the industry leader, generated $66.7 billion in revenue in 2022. However, disruptions from peak beverage season can impact the movement of freight, causing out-of-stock rates that can eat away at profit margins.
Mitigating Challenges of Beverage Season with BiggerPictures' Solution
To mitigate the challenges of beverage season and improve planning and execution, manufacturers and distributors in the beverage industry can turn to BiggerPictures Dynamic Scheduling solution. This solution can also help reduce warehousing costs by optimizing inventory levels based on demand. This ensures that manufacturers and distributors are only storing the necessary amount of inventory, reducing the need for expensive warehouse space.
In addition to reducing costs, BiggerPictures' solution can also improve service levels by providing real-time visibility into the supply chain. This allows manufacturers and distributors to quickly identify and address any issues that may arise during the season, ensuring that customers receive their orders on time and in full.
So, if you are in the beverage industry and want to reduce your warehousing and transportation costs while improving your service levels during beverage season, consider implementing BiggerPictures' solution today. Contact us to learn more about how we can help you optimize your supply chain and stay ahead of the competition.