Distribution

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A facility that contains packaged product, equipment and people has been called many things; however, that big “barn” generally is referred to as a warehouse. These facilities also will vary in size, layout and capabilities.

The old TV commercial where the oil filter technician said “You can pay me now or pay me later,” implies that saving a little money up-front might cost much more in the long run.

“SKU proliferation is the largest change the industry has seen in the last decade,” says Aaron Corcoran, account executive for Westfalia Technologies Inc., York, Pa.

Although SKU counts are expanding and other market forces are impacting logistical strategies, beverage distributors are increasingly looking at equipment changes to gain a competitive edge.

The case for reusable containers is getting stronger. The ability of beverage-makers to ship products in reusable cartons — some of which also function as in-store displays — is resulting in potentially powerful cost savings while also giving companies an environmentally friendly aura.

At the beginning of a new year, it’s customary to look forward and imagine the future. In keeping with that tradition, let’s fast-forward five years into the future to look at the challenges and opportunities that managers will face with their 2020 fleets.

Beverage Industry recently conducted its second-annual fleet survey to get an updated picture of the size and makeup of current delivery fleets as well as operational concerns and strategies.

With the commercial truck market showing continued signs of strength in the past year, several manufacturers brought new models to market for 2015.

Even the smallest beverage distributors in today’s marketplace have a vastly expanded range of products to market. Thus, they’re increasingly turning to fleet vehicles — large and small — to promote many smaller and newer brands with eye-catching mobile graphics.

Just a few decades ago, beverage fleet managers worked with a well-established and generally predictable set of equipment-related variables to arrive at a total fleet operating cost that could be factored in to the wholesale product prices charged by a distributor.