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DIGITAL INNOVATIONS
Supply chain technology is changing the game
by MELISSA DOWLING
Thanks to ever-evolving technology, beverage distribution is moving well beyond simply putting orders online and becoming a data- and software-driven operating model. Distributors are beginning to integrate technology such as artificial intelligence, route optimization, warehouse automation, B2B e-commerce, predictive ordering and connected field-sales tools into the core ERP / route-accounting systems.
Technology, particularly AI, is advancing at a furious pace, and that’ s enabling beverage wholesalers to do more and move faster.“ We’ re starting to see more companies diversify from a fixed strategy” with network or territory design, says Tara Buchler, principal of strategy at JBF Consulting, an advisory firm that helps supply chain leaders choose and implement logistics technology.
Because it previously took time and software to get all the information needed to analyze scenarios and come up with a strategy, wholesalers would typically revisit their systems every 12 months, Buchler says.“ The ability to more quickly do territory / network design is here.”
“ We’ re starting to see more customers take advantage of last mile routing”
-Tara Buchler, principal of strategy at JBF Consulting
Breakthru Beverage Group has digitized its delivery operation with DeliveryNow, enabling instant invoicing and real-time credits across all markets.
She cites Optilogic, an AI-powered supply chain design and decision intelligence platform that combines optimization, simulation and risk modeling into a single cloud-based environment, as a system that makes it possible to start redesigning your network based on real changes in the business. VR Tek Partners is another.
“ We’ re seeing software solutions starting to suggest when something has changed, and can then set and execute a strategy,” Buchler says.
Breakthru Beverage Group is executing a four-year transformation roadmap while the pace of AI is accelerating, says chief information officer Glenn Remoreras. One highlight is an AI Center of Excellence and deploying AI use cases across the enterprise.“ We’ ve enabled Breakthru IQ, a data-driven sales insights platform that delivers opportunity information and planning functionality directly to our sales teams,” he says.“ Its core purpose is to enable smarter selling decisions and drive measurable share growth.”
The company also started piloting BreakthruBridge, a self-service data portal that gives suppliers real-time access to their data.“ We digitized our entire delivery operation with DeliveryNow, enabling instant invoicing and real-time credits across all markets,” says Remoreras.“ And we continue to scale our e-commerce platform, BreakthruNow, which already processes over $ 700 million in transactions.”
A cloud-first architecture underpins these efforts.“ We have partnered with AWS and are close to going live with S / 4HANA ERP,” Remoreras says.
“ Every initiative ties to a business outcome: revenue growth, cost savings, or a better experience for our suppliers and customers. Our goal is to be the most technologically advanced beverage distributor in our class, and we’ re well on our way.”
IMPROVED LOGISTICS AND INVENTORY FORECASTING Beverage distributors have historically relied heavily on sales reps’ experience, historical orders and spreadsheet-based forecasting. The newer model with AI-driven demand forecasting and predictive ordering combines historical SKU / account sales; seasonality; promotions and pricing; weather; local events; store-level purchasing patterns; inventory and supplier availability.
“ We’ re starting to see more customers take advantage of last mile routing,” the planning and sequencing of the final leg of a delivery route from a local hub to the customer, says Buchler.“ Actual routing possibilities are becoming faster and smarter.”
That’ s because systems have access to information on traffic, weather issues and the precise location of the truck. Rather than a fixed schedule, distributors can divert the route if issues crop up. This not only cuts costs and reduces wear and tear on the trucks— and drivers— it can also improve the customer experience by providing real-time updates, she says.
What’ s more, real-time transit information enables companies to do more sophisticated inventory forecasting, Buchler notes. Previously distributors had to project inventory based on what they had on hand. But when you can see where goods are in transit and pinpoint when they’ re expected in,“ you can make inventory projections slightly more granular,” she says.
Examples of vendors in this space include FourKites, a real-time supply chain visibility and predictive analytics platform to track freight, manage orders and automate ETAs. Project44 is a decision intelligence platform for enterprise shippers, while Shippeo is a real-time multimodal transportation visibility software platform that helps companies track shipments across road, rail, sea and air.
Breakthru Beverage Group’ s e-commerce platform, BreakthruNow, processes over $ 700 million in transactions.
EYE ON AI DeliveryNow has digitized Breakthru Beverage Group’ s entire invoicing and credits process, improving speed, accuracy and the customer experience at the point of delivery, says Remoreras.“ BreakthruBridge will give suppliers self-service access to their data in real time, replacing legacy tools and measurably improving engagement.”
Breakthru has found several ways to be more efficient with AI.“ For example, we’ ve replatformed several apps and websites using Claude,” explains Remoreras.“ We are on pace to significantly reduce our data center footprint through cloud enablement, and that brings a host of data capabilities we’ ve never had before. We are expecting to harvest value from our investments in data, AI and ERP across finance, supply chain and sales enablement.”
Despite the promise of and enthusiasm for AI, distributors should proceed with caution before investing in technology, says Buchler. Most companies need to pause and do an analytic decision process, evaluate what the objective is and decide where to prioritize.“ Don’ t assume what a software company is telling you is necessarily right for you.”
Data and AI are major priorities for Breakthru because they have the potential to create value across virtually every part of the organization, Remoreras says, but the important piece is building the right foundation first.“ We’ re investing in modern core platforms and an enterprise data foundation that can connect information across the business and ultimately support AI at scale,” he adds.“ From there, the opportunities span commercial, supply chain, finance, technology and people operations.”
Breakthru sees particularly strong opportunities around smarter selling, digital commerce, demand forecasting, inventory optimization and customer personalization, Remoreras notes.“ The goal isn’ t simply to deploy more technology; it’ s to focus investment where technology can materially improve how we serve customers and suppliers and how our associates work.”•