How Does Drinks Fulfilment Work With a 3PL? Top 10 Frequently Asked Questions

The cost of renting a warehouse in the UK has seen a massive increase in recent years. Multiple factors are contributing to this increase, including high demand for storage space, limited availability and rising operational costs.

London continues to be the most expensive market for warehousing, with occupier costs reaching £44 per square foot in June 2024, marking a 7.1% increase from the previous year. Additionally, Colliers reports that rents for large distribution warehouses across the UK have risen by an average of 5% year-on-year (colliers.com, 2024).

1. What is 3PL?

‘3PL’ stands for ‘third-party logistics’.

Third-party logistics is a service that provides businesses with outsourced logistics for part of or all of their supply chain management functions. The 3PL provider takes on the responsibility of managing and executing logistics functions that were traditionally handled in-house by the business.

A drinks 3PL company handles the order and fulfilment of on-trade and sometimes ecommerce or DTC (direct-to-consumer) drinks orders. They are completely specialised in drinks logistics and will be able to offer bespoke services for breweries, wineries and distilleries.

To read more about what a 3PL is, check our our blog here.

2. How much does drinks 3PL cost?

How much a third-party logistics drinks company (3PL) costs will depend on a few factors:

Pricing model: different drinks 3PLs will use different pricing models, for example flate-rate or activity-based pricing. These pricing models will often be the basis of you monthly drinks logistics costs.

Quantity/Literage of drinks to deliver: a 3PL’s prices may vary depending on how many litres or bottles/cans you need delivered monthly/annually.

Aditional drinks storage services: there may be additional costs applied for additional storage services, such as chilled storage.

Note: 3PLs may also charge additional fees, including:

Onboarding and set-up fees
Receiving of inventory fees
Additional storage fees

To read more about how much a 3PL costs, including the different kinds of fees, click here.

At Tap’in 3PL, we charge drinks producers using a simple, straightforward PDL (price per delivered litre) rate. This means that, instead of juggling multiple invoices for stock handling, storage, delivery and empty keg collection, you receive one, easy-to-understand invoice. Keeping your experience with us as smooth and as hassle-free as possible is what it’s all about at Tap’in.

Want to find out how much outsourcing your logistics to Tap’in would cost compared to your in-house operations? Try out our free PDL calculator tool.

3. What types of drinks products can a 3PL store and ship?

Most 3PLs that offer a drinks logistics service can handle kegs, casks, cans and bottles for a wide variety of different drinks.

Drinks-only 3PLs like Tap’in offer a full drinks logistics service for breweries, wineries, distilleries and low-and-no alcohol producers and can handle 30 litre and 50 litre kegs, casks, cans and bottles of drink.

4. Can a 3PL handle both DTC (direct-to-consumer) and B2B drinks orders?

Some 3PLs offer an ecommerce or direct-to-consumer drinks order fulfilment and delivery, as well as a standard on-trade drinks logistics service.

Tap’in 3PL specialise in fulfilling next-day on-trade deliveries into London and South East UK while also offering ecommerce fulfilment for drinks producers dispatching 500+ orders a month.

5. How quickly can a 3PL process and deliver drinks orders?

3PLs often process and deliver drinks orders within 1-2 days, depending on the location of their warehouse and you drink’s order’s final destination.

Many 3PLs who have warehouses close to hotspots like London offer next-day deliveries.

Tap’in 3PL offers next-day deliveries into London 4 days a week, thanks to our warehouse just 13 miles outside of London and our sustainable use of consolidated deliveries.

6. What delivery options and distribution methods do 3PLs offer for drinks and alcohol?

3PLs usually utilise three main distribution methods for on-trade drinks venue deliveries:

Delivery fleet: a 3PL will have access to a chosen delivery fleet, which usually runs full-time (depending on the scale of the 3PL’s business)

Pallet Network: a group of professional hauliers working together to provide cost-effective, nationwide and next day (dependent) freight delivery services. Read more about Pallet Network and its benefits here.

Courier service: a 3PL that offers ecommerce fulfilment will have pre-built connections with their chosen courier. For example, Tap’in 3PL typically use DHL for ecommerce DTC deliveries, but our expert logistics team can choose to allocate your on-trade deliveries to a courier if it’s more time and cost-effective.

Can a 3PL Reduce Warehouse Costs?

A third-party logistics provider (3PL) can absolutely help reduce warehouse-related costs. Here’s how:

‍All-Inclusive Costs: A 3PL combines warehouse space, staffing and technology into one streamlined fee, making budgeting easier and often more cost-effective.‍

Access to Expertise: You’re not just paying for storage; you’re gaining access to a team of logistics professionals with strong systems and processes.‍

Staffing Savings: No need to recruit, train or manage warehouse staff- your 3PL will handle it all.‍

Scalable Solutions: As your business grows or goes through seasonal peaks, 3PLs can adapt their services to match demand without the need for additional investment.‍

Delivery & Distribution: Many 3PLs manage final-mile delivery and have established carrier relationships, reducing shipping costs and transit times.‍

Consolidated Deliveries: Drinks-focused 3PLs can consolidate orders from multiple drinks producers, allowing more of your stock to be delivered more regularly. This not only increases delivery frequency and reduces costs, but it’s better for the planet, too! Read more about the benefits of consolidated drinks deliveries here.‍

Reduced Resource Investment: Outsourcing eliminates the need to invest in warehousing facilities and software, forklifts and a delivery van fleet.‍

Focus on Growth: With logistics taken care of, your team can spend more time on sales, marketing and scaling your brand to help increase sales and overall profit.

Tap'in: Transparent 3PL Pricing You Can Trust

At Tap’in, we believe in clarity and simplicity. That’s why we offer a straightforward and transparent Price per Deliverable Litre (PDL) pricing model that is scaleable and tailored to each business’s individual drinks logistics needs.

Our PDL rate covers:

Receipt and handling of pallets in to the warehouse
Storage (based on your individual needs)
Collection of empty kegs from venues
Access to our expert Logistics & Warehouse teams
Access to our full-time customer service team

Check out our PDL tool to find out how much you can save with Tap’in.

Is Tap'in the Right 3PL for Your Drinks Business?

At Tap’in, we specialise in drinks logistics only- this ensures our team stays laser-focused on providing a seamless service to breweries, wineries, distilleries and low-and-no drinks producers.

Tap’in 3PL could work for your drinks business if…:

‍You’re a drinks producer: Tap’in works with breweries, wineries, distilleries and low-and-no alcohol drinks producers. We use a simple PDL charging matrix that is specifically built to optimise drinks’ delivery charges. ‍

You deliver a minimum 3,500 litres of drink per month: for our drinks logistics service to be cost-effective and efficient, we work specifically with drinks producers operating on these minimum quantities‍

You produce in the UK and are looking for London and South-East deliveries: our warehouse located just outside of London means that our team can deliver into London 4 times a week and even offer next-day deliveries (subject to our delivery timetable)

Get in touch with our expert team using the form below to find out more.

Alternatively, check out these blogs to find out more about outsourcing your drinks logistics: