Outsourced vs In-House Managed Logistics
Brewing Beer Is Just Half
Logistics is critical for breweries. It’s the bridge that connects your beer to consumers so it must be planned and managed with care.
However, if you don’t have sufficient and highly-trained manpower, logistics management can be extremely complicated, taxing, and expensive. You have to own or lease your own fleet, maintain it, rent a warehouse, and hire more staff.
On the other hand, maintaining an in-house logistics management system gives you complete control over the entire process. And with an in-house team, you can be sure the company’s values are completely understood.
This is the dilemma of brewery managers. Should they outsource logistics or keep it in-house?
— Kenny G, Hopculture
— Doug, Deutsche Beverage Technology
— Jamie, Head Brewer & Owner: Southern Grist Brewery
— Megan, Business Mgr - Side Project Brewing
— Ryan Castro
— Matt Virgil
— Elijah-Blue Vieau
— Chantelle Stone
— Martin S
— Christina Rowe
Brewery owners wear many hats, but managing logistics shouldn’t be one of them. When you outsource this step in the brewing process, you work with a primary freight broker, like Brew Movers, who handles everything.
We work hard to make sure your orders get shipped on time. When your inbound and outbound logistics are outsourced, you can focus on what’s most important—your beer. Learn more about our managed logistics services here.
The Benefits of Third-Party
Passing logistics operations to a third-party logistics (3PL) company frees up your time to focus on other critical operations.
The expertise of 3PL companies is logistics. When you outsource logistics to them, you get expert management and solutions to logistics issues that lead to increased customer satisfaction
Outsourcing logistics lets you avoid investing in expensive supply chain software and other programs.
You can scale your shipping needs at a moment’s notice, without hassle.
Logistics involve many permits, contracts, safety ratings, and other grunt work. Logistics service providers help manage all of those which means reduced liabilities for you.
Companies with in-house logistics management usually have their own fleet of trucks and are capable of delivering items to customers straight from the closest distribution centre or retail outlet. This makes it simple and easy to control delivery timeframes.
This is a good option if you have a high enough shipping volume for inbound and outbound logistics. Ideally, your in-house logistics expert will have previously worked with a carrier or broker and are exceptionally connected in the industry. This person should also handle negotiating your own rates/tariffs.
However, companies may have trouble finding a trustworthy third-party delivery service to collaborate with. Also, it is not always the best economic option for a brewery to rely on a single in-house person for this job, as small mistakes can turn into expensive clean-ups.
The Benefits of In-House
You and your people know your business more than anyone else. This means every step of the logistics process will be aligned with your business values.
Resolving issues with an in-house team is easier because everyone understands the level of communication expected of them. This reduces back-and-forth communication and the risk of any information getting lost in translation.
The distance of the logistics service to production is near which optimizes the flow of the supply chain.
Which is Better for Your Business:
Outsourced or In-House Logistics Management?
|Frees up your time|
|Access to expert logistic management|
|Reduced back-office work|
|Intimate knowledge of company values|
|Reduced back-and-forth communication|
|Optimized flow of the supply chain|