Supply Chain Challenges in the Beverage Industry

Disruptions in supply chain management can lead to production delays, distribution issues, and unhappy customers.

FREMONT, CA: Building a successful beverage business requires great products, efficient production systems, effective marketing, and excellent customer service. A successful business can quickly fail if it lacks a way to keep everything moving smoothly. It is common for business owners to experience production delays, distribution problems, angry customers, and stress and anxiety as a result of ineffective supply chain management. Staying up-to-date with trends in the overall supply chain industry is important for beverage companies.

The following addresses some significant supply chain challenges affecting the beverage distribution industry.

Supply of raw materials and ingredients: The beverage industry relies heavily on other producers for key materials and ingredients. When suppliers are affected, the impact can be felt across the entire supply chain. It is common for beverage manufacturers to encounter logistical disasters when their suppliers need help delivering key ingredients or materials. Fraud is more likely to occur when demand for food is high, and supply is limited. The public deserves high-quality beverage products, so manufacturers should watch out for counterfeit products, contaminated ingredients, and additive-laced ingredients.

Delays in shipping and delivery: Global supply chains are being stressed due to domestic factors, including truck shortages, port backlogs, and rising shipping costs - and beverage producers are also affected. As beverage manufacturers work with perishable products, they have the additional challenge of maintaining the freshness of their constituent ingredients and final products through the supply chain. This trend is expected to continue, so the beverage industry must find ways to deal with it.

Changing regulations and requirements: It is also important for beverage companies to be aware of rules and regulations within their supply chains, but new laws and policies can present challenges when it comes to ensuring compliance. For instance, the Federal Motor Carrier Safety Administration (FMCSA) has mandated using Electronic Logging Devices (ELD), which adds additional costs and delays to small businesses. Keeping up with supply chain regulations is essential for beverage manufacturers who want to remain legal.

Complexities in navigating the path to market: The days of only dealing with grocery stores and supermarkets to distribute your product have long passed. As consumers increasingly purchase beverages online and via e-commerce platforms, manufacturers must adapt to this challenge by delivering goods directly. Aside from simply collaborating with retailers to market products, this adds another complexity to operations. It is more important for beverage manufacturers to consider the best way to reach and deliver to consumers directly and cost-effectively to capture the market.

Delivering top-notch customer experiences: Customer experience suffers when the supply chain is defective – and unhappy customers don't hesitate to switch to your competitors. Beverage manufacturers face many challenges ensuring these challenges do not negatively impact customers in a complex supply chain environment. Drink manufacturers must step up their game to continue to deliver top-notch customer experiences through in-built redundancies and buffers for delays.