10 Signs It Might Be Time to Use a Third-Party Logistics Provider for Your Drinks Business

Logistics can feel overwhelming and expensive for a growing drinks business. Knowing when it’s the right time to use a third-party logistics provider (3PL) is crucial to streamlining your operations and unlocking the full potential of your brewery, winery or distillery.

Timing is everything in the world of logistics- so is now the time to make the switch? Here are our Top 10 signs that partnering with a 3PL could be the right move for your drinks business:

1. You’re Experiencing Rapid Growth

Are you beginning to produce more products or experiencing an increase in order numbers which go above your in-house logistics capacity? If so, it might be time to consider outsourcing your drinks logistics.

Third-party logistics providers have key resources built into their service offerings. This helps craft breweries, wineries and distilleries to scale and meet increasing demand.

2. You Want to Reduce Overhead Costs

Managing logistics in-house requires investment in appropriate warehouse space, sufficient staffing and a well-managed van fleet. By outsourcing to a third-party logistics company, drinks producers save money on staff, storage and the cost of running a fleet of vehicles, while also gaining access to industry expertise.

3. Managing Logistics Is Too Time-Consuming

Is managing storage, shipping and customer service consuming too much of your time and resources? A 3PL can help ease the load.

Third-party logistics providers have their own dedicated logistics departments that focus solely on getting your product from A to B.

4. You Need More Room to Brew

Third-party logistics companies provide specialised storage for your product, freeing up your valuable warehouse space and giving craft brewers, winemakers and distillers more room to produce drinks.

5. You’re Expanding to New Markets

Breaking into new geographical locations comes with additional logistical challenges. For international drinks producers, navigating customs and ensuring regulatory compliance may become time-consuming and complicated to manage. A drinks-industry experienced 3PL can manage these hurdles for you as part of their all-inclusive service offering.

6. You Need Specialised Storage

Craft beers, wines, spirits and liqueurs may require specific storage conditions to keep their intended quality. Partnering with a third-party logistics company that offers specialised warehousing (such as cold or temperature-controlled or bonded warehousing) ensures your drinks maintain top condition while they’re in storage.

7. You Struggle with Seasonal Demand

Product demand naturally fluctuates during peak seasons, especially in the drinks industry. A third-party logistics company can help scale your logistics operations up or down as needed, meaning you’re prepared for busy periods while avoiding overstocking during quieter times.

8. You’re Increasing Your Direct-to-Consumer (DTC) Sales

If your DTC drinks service is expanding, a third-party logistics company can provide the fulfilment of orders and the packing and shipping solutions needed to ensure a seamless, customer-focused experience.

9. Alcohol Regulations are Complicated

Alcohol storage, transportation and delivery compliance can become complicated and time-consuming. A third-party logistics provider with specific drinks-industry knowledge can ensure the whole distribution process remains compliant, from secure warehousing to age-verification checks at the point of delivery.

10. You Need Data-Driven Insights

Most modern third-party logistics providers invest in advanced technology for inventory management. These tools provide better, data-driven insights on stock levels, helping you stay on top of products going out.

Consider Minimum Order Quantities

It’s important to understand that some third-party logistics providers require a commitment to deliver minimum order quantities (MOQs). For smaller producers, it’s worth discussing these requirements upfront to determine whether a 3PL is the right fit at your current scale.

Is Now the Right Time for Your Drinks Business?

Do any of these Top 10 scenarios sound like your current situation? If so, it might be time to consider partnering with a 3PL.

From managing rapid growth and expanding to new markets to ensuring compliance and reducing overhead costs, a 3PL can offer the expertise and resources you need to take your drinks business to the next level.

Ready to Explore Your Options? Tap’in are Here to Help.

With years of expertise in the drinks industry, Tap’in provides bespoke third-party logistics solutions for your drinks brand.

Our warehouse is strategically placed just outside of London. This, coupled with our next-day, 4 days a week delivery into London means we get your drinks to their venues on time and in perfect condition.

Tap'in operates under a straightforward and transparent 'price per delivered litre' (or 'PDL') pricing model, which we tailor to each client's individual needs, considering the movement and management of the product.

Talk to our experienced team today to learn more about how we can support your unique journey to success. Scale your drinks business on your terms, without having to worry about the logistics.

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