The Pros and Cons of Outsourcing Your Beer and Wine Fulfillment

The craft beer and wine industries have seen significant growth in the last few years. In fact, craft beer alone has grown to an almost $300 billion global industry. Craft brewers, by definition, must produce less than six million barrels of beer; therefore, many lack the resources to distribute their beer outside a local region. As a result, more businesses have been outsourcing their beer and wine fulfillment needs. While this approach can greatly reduce costs and streamline processes, it also comes with risks and challenges. To help you decide if outsourcing is the right choice for your business, here is a look at the pros and cons of outsourcing your beer and wine fulfillment.

Pros: Outsourcing Your Beer and Wine Fulfillment

1. Cost Savings

The most obvious benefit of outsourcing beer and wine fulfillment is that it can help you save money. By outsourcing, you won’t have to pay for all the overhead costs associated with hiring, training, and managing staff. You’ll also be able to save on the cost of purchasing and maintaining the necessary equipment.

2. Increase Efficiency

Outsourcing your beer and wine fulfillment can also help you increase efficiency. It removes the need for a business to manage its own staff and maintain the infrastructure needed for beer and wine fulfillment. Professional fulfillment companies have the experience and resources to quickly and accurately distribute orders, allowing you to focus on the core competencies of your business.

3. Expertise

When you outsource your beer and wine fulfillment, you gain access to a team of experts. Professional fulfillment companies understand the industry’s complexities and can provide valuable insights and advice that you may not have access to otherwise. Not only can they streamline transportation and distribution, but they can also help your company expand into new markets effectively.

4. Compliance

Beer and wine production and distribution are monitored by different regulatory bodies. The larger the operation, the greater the risk of serious non-compliance issues, particularly in the United States. Production, storage, and transport must all observe regulations, production processes, workplace safety, and environmental impact. Not only that, but even the definitions of what qualifies as “beer” are in flux. Compliance and regulatory issues concerning local and global laws concerning alcohol transport are reason enough to outsource fulfillment.

Cons: Outsourcing Your Beer and Wine Fulfillment

1. Loss of Control

While outsourcing can greatly reduce costs and increase efficiency, it can also lead to a loss of control. When you outsource, you rely on another company to handle vital aspects of your business. This can lead to delays, errors, and other issues that can negatively impact your business.

2. Quality Issues

Another downside of outsourcing is that you can’t always guarantee the quality of your products. A small producer with a hyper-local customer base can ensure their craft brews meet the expected taste and quality standards. As sales and customer demand increase, outsourcing fulfillment becomes a viable option, but some 3PLs may not have the same standards as your own business. This can lead to quality control issues and dissatisfied consumers.

3. Unpredictable Costs

Finally, it’s essential to remember that outsourcing can lead to unpredictable costs. Depending on your fulfillment partner, you may be subject to unexpected fees or charges that can quickly add up. This is especially true if your fulfillment teams have confusing specialty fees.