beer_steins

Background

America’s biggest-selling craft brewer was growing at double-digit rates when Aero partnered with them in 2004.  The company started at $150M and has grown to over $1B in sales. They were searching for a fulfillment provider that could manage both their everyday items and their complex seasonal promotions involving promotional pushes, samples, and POS/ POP distribution. These programs included a wide array of items such as, glassware, hard goods, paper items, sell sheets, wearables, and most importantly tap handles that were all distributed to sales reps, employees, authorized distributors and retailers.  

Challenge

The craft brewer was disenfranchised with their current fulfillment provider. There was concern surrounding service level failures from the previous provider, high costs due to the process required, quality shortfalls with inbound validation of inventory, a lack of tracking and reporting technology and the absence of a centralized distribution location. Aero was faced with overcoming these challenges along with managing complex seasonal promotional campaigns while making the process easier, more efficient and more cost effective.

Solution

Aero engaged the craft brewer's management team to be a strategic and innovative partner.  We focused on supporting growth while remaining scalable and flexible.  We provided a flawless transition to Aero, including a technology portal live in less than 90-days.  Our technology portal enabled the supply chain to be traceable and managed in real-time. Aero’s emphasis on lean process and operational excellence in turn reduced staffing and drove costs down.  Disciplined business rules and a tightly integrated system infrastructure between client and Aero resulted in a simplified and effective user experience keeping product levels lean and accurate.  Allotment strategies track specific inventory items, earmarked (in allotments) for National Account Managers.  Aero’s centralized location allowed for distribution to 75% of the population in two days or less

Results

Aero has provided this craft brewer a solution that resulted in savings in their fulfillment spend, improved operational processes, decreased transportation costs and better buying decisions based on data and reporting. 

  • The client’s fulfillment costs have consistently decreased (per order processed) as volumes have increased since 2004.
  • Aero proved 99%+ accuracies and higher across all key performance/ service level areas, exceeding industry standards.
  • The technology portal allows field users to place orders in real-time and connect seamlessly between vendors, their company enterprise system and the fulfillment center. 
  • 100% Quality Control checks enabled validation of inbound inventory and resulted in increased inventory accuracy across all SKU’s to 99.9% and order accuracy to 99%.
  • Aero’s centralized location allowed for efficient and cost effective management of inbound and outbound shipments and resulted in lowering transportation costs by 15%.
  • By providing better data and inventory information, the client was able to make better decisions on promotional items and purchasing which resulted in a 10% reduction in cost on inventory carry