National Insurance Increase: How Can Drinks Brands Reduce Costs?

It's no secret- as wages continue to rise and the demand for skilled workers grows, many drinks producers are finding it increasingly difficult to manage their staff costs. With the rise in employer National Insurance contributions kicking in from April 2025, many drinks producers are looking for ways to reduce labour costs to help maintain profitability while still considering operational efficiency.

One potential solution to reducing staff costs for your drinks business is partnering with a third-party logistics provider (3PL). By outsourcing key logistics functions, such as warehousing, order fulfilment and delivery, drinks businesses can streamline operations, cut staff costs and reprioritise time and resources to focus on brewing, fermenting or distilling.

In this blog, we'll dive deeper into 6 key ways drinks producers such as breweries, wineries and distilleries can cut their labour and staff costs by outsourcing to a third-party logistics company.

How Can a Third-Party Logistics Provider Help Reduce Labour and Staffing Costs for Drinks Producers?

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1. Reduce the Need for In-House Staff

Managing logistics in-house means hiring a significant number of employees for warehousing, order picking, packing and distribution tasks. A third-party logistics provider (3PL) can handle these functions for drinks brands, reducing the need for full-time, in-house staff. This can result in savings on salaries and staff training while still maintaining a reliable and professional service.

2. Providing Scalable Solutions to Meet Demand Fluctuations

Drinks production is often seasonal, with spikes in customer demand often appearing during peak seasons. Hiring temporary staff to cover these peaks can create unnecessary labour costs. A third-party logistics provider offers scalability, meaning drinks producers can adjust the level of required service based on current demand. This flexibility helps to avoid the additional costs of seasonal hires and overstaffing during slower periods.

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3. Automation and Efficiency in 3PL Operations

Most modern third-party logistics providers use advanced technology to automate key processes, such as inventory management and order tracking. These technologies help streamline operations and reduce reliance on human labour. With automation, the potential for errors is also reduced and tasks that would normally require human resources can be carried out more effectively, helping to lower overall labour costs.

4. Lower Administrative and Operational Costs

Managing logistics in-house means manually handling a variety of administrative tasks, such as payroll. By working with an outsourced third-party logistics company, drinks producers can reduce the extra admin, allowing their in-house teams to focus on other important areas of business, such as sales and product development. This can lead to long-term savings across the business.

5. No Need for Logistics Expertise In-House

By partnering with a 3PL, drinks producers eliminate the need to hire and maintain a specialised, in-house logistics team. Managing warehousing, order fulfilment and distribution requires a number of professionals who understand supply chain operations, inventory management and compliance with industry regulations, including alcohol distribution laws. Recruiting and retaining the relevant staff can be expensive, especially when considering salaries, benefits and continuous training.

A 3PL already has its own team of experienced logistics professionals, allowing drinks companies to access industry expertise without committing to the overhead costs of hiring a dedicated team.

6. Reduced Overtime and Shift Work Expenses

Running an in-house logistics operation often requires extending staff work hours to cover night shifts, weekends and peak periods, leading to higher labour costs due to overtime pay.

In contrast, a 3PL operates at a larger scale, effectively managing staff levels to ensure around-the-clock operations without the burden of overtime wages charged to a single brand. This allows drinks producers to benefit from a flexible and cost-effective labour structure without the financial commitment of paying a full-time logistics team during slower periods.

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Conclusion

As labour costs continue to rise, drinks producers are eager to find efficient ways to manage in-house costs without compromising on service quality. Working with a third-party logistics company can help reduce staffing and operational costs while still streamlining supply chain processes and providing flexibility to meet changing demand.

By outsourcing logistics functions to a trusted provider, drinks brands can free up valuable resources, improve operational efficiency and position themselves for long-term growth. Whether it's through cost-effective shipping, scalable solutions or automation, partnering with a third-party logistics provider can offer a potential pathway to reducing labour costs while staying competitive in the ever-evolving drinks market.

It's important to consider whether partnering with a 3PL is for you. Check out our blogs below to help you make the most informed decision for your individual drinks logistic needs:

• ‍10 Signs It Might Be Time to Use a Third-Party Logistics Partner For Your Drinks Business‍
• Third-Party Logistics (3PL) VS. Wholesaler: Which is Right For Your Drinks Business?

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Tap'in 3PL - The Drinks Operations Team of Your Dreams

Looking to cut operational costs for your drinks business? Tap'in are here to help. With our warehouse conveniently located just outside of London, we're here to make sure your drinks are delivered to their venues on time and in perfect condition.

Tap'in can offer an array of benefits to drinks producers, including:

• Next-day, flexible deliveries: Keep your venues stocked and your customers happy with our swift, ​next-day delivery service. We deliver to key London postcodes up to four days a week, giving you the flexibility to meet demand.

• 1 Stock-Drop: Drop off your products to our storage facility just outside of London, all in one go. ​Keep your stock drop-offs convenient.
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• Room to Grow: Our model is not only scalable but also economical, giving you the flexibility to grow with your customer base.​
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• Simple Pricing & Lower Costs: through our simple price per deliverable litre (PDL) model, we charge drinks producers based on their individual order quantities, making our pricing model scalable and unique to what your business truly needs. Cut the costs with Tap'in.
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• Sustainable Approach: Our trusted drivers deliver multiple brands at a time using consolidated deliveries, reducing individual brewery carbon footprints and helping the planet.​
  

Want to find out more? Contact our team of logistics experts using the form below to discuss how we can make our drinks logistics work for you.