OpScoop Chapter II Issue II: Supply chain management in beer industry!

The demand for beer has remained strong for over 5000 years. With the changing times, preference for fresh artesian produce has seen a significant growth in the demand for authentic craft beer products. Craft brewing relies on high-quality ingredients to produce a variety of unique tastes and flavours. As beer consumers develop a taste for more refined small-batch brews, the need for beer supply chain management solutions is rising.

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One of the major ingredients used for diversification of craft beers is Hop. The beta acids in Hop prevent bacterial contamination; giving the beer stability and increasing its shelf life. The growing popularity of craft beer is creating pressure on the global Hop supply with issues arising because of the unavailability of a steady supply of Hop. With high demand driving higher prices, exporting provides better return thereby further reducing supply for local brewers.

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San Diego Hop Farms Grow Amid Thriving Craft Beer Industry.

To overcome supply chain challenges and manage beer production, demand solution planning is implemented. This involves viewing sales forecasts by item, account, customer segment and refining business forecasts over time Also collaboration with key suppliers to establish order plan projections, improved batch planning, production scheduling and ingredient forecasting is done.

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Craft Brewery

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For better supply chain management Demand solutions software is used. This software provides a solution to the problem of seasonal brews requiring product line changes throughout the year with short windows of opportunity.  The software integrates third-party data from Vermont Information Processing, a leading beverage industry market data provider, and improves the ability to forecast beer distributor depletions. The Brewers have a better visibility of on-hand inventory further adding value to those beer distributors.

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Demand Solutions for the brewery supply chain needs:

  • Tank management – the ability to schedule the brewing process from fermentation to bottling. Brew. Bright. Bottle.
  • Gain a full 360-degree view of the company’s planning and production status
  • Implement sales and operations planning processes

In the coming future, the development of technology will continue, prices of both software and hardware will come down, and systems that are now only available to the largest players will become more widely used. 3PL management of physical logistics (warehousing and transport) will continue and grow. The transport operations will be impacted by greenhouse emission issues. Brewing logistics are likely to remain highly contingent upon the specific route to market chosen which in turn will be driven by the types of product and markets in which a brewer wishes to operate.

 

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