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Key Logistic Challenges for Alcoholic Beverages

The alcoholic beverage industry is a challenging business. Consumers’ attitude determines how the business is done in the industry. The global alcoholic beverages market is forecast to grow to $1,684 billion by 2025. That implies that a billion litres of drinks will be delivered to consumers all over the world. Supply chain and distribution are the key factors to remain successful in the market. By improving these areas increase the company’s profits.

Companies need to be familiar with the market trends and preferences. The alcoholic beverage industry is constantly evolving. Companies must come up with solutions to resolve these challenges.

Regulatory Challenges of Alcoholic Beverages

The production and distribution of alcoholic beverages are monitored by different regulations. Companies need to comply with state and local laws to sell their products. The bigger the operation is, the greater the risk of non-compliance for its customers, partners, reputation, and financial health. Production, storage, and transportation including ingredients, production processes, workplace safety, health, and environmental impact must all observe regulations.

Growing Numbers of Stock-Keeping Unit (SKU)

As the number of products the alcohol manufacturer produced increased, the number of unique SKUs allocated to each product increased as well. With the increased numbers of SKUs, managing inventory, order taking, order processing, delivery, and forecasting the growing number of product lines are becoming more and more complex and challenging. Companies will need to consider a catalogue-centric solution that will support the inventory and billing, as well as providing a great sales route planner tool.

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Poh Guo Yuan Michael, DLSM
Michael Poh Guo Yuan has substantive years of experience in the specialised field of logistics and warehousing. He is currently managing a distribution warehouse. He is a member of the Singapore Institute of Purchasing and Materials Management (SIPMM). Michael completed the Diploma in Logistics and Supply Management (DLSM) on March 2021 at SIPMM Institute.

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