It’s vibrant and fast-paced in the drinks industry – and tight profit margins are the norm. From fluctuating inventory costs and relentless pricing pressures, to rising operational expenses, maintaining profitability requires a delicate balancing act. For leaders wondering how to reduce costs in the drinks industry and manage tight margins effectively, we offer a proven solution. With powerful, industry-specific business management tools, Bevica helps you streamline your business operations, control costs and ultimately drive profitability.
How best to manage tight margins in the drinks industry: Key challenges
In the food and drinks space, profit margins are often razor-thin – especially for high-cost products to manufacture, like drinks. Let’s take a closer look at the key challenges that businesses like yours face:
- Inventory costs: Managing stock effectively is crucial, especially when dealing with perishable goods or products that are affected by varying or seasonal demand. Overstocking will tie up your cash and risk wastage, while understocking can lead to you missing out on sales.
- Pricing pressures: Competitive markets push your prices down, while supplier costs often rise. Balancing these forces without eroding your margin requires careful strategy.
- Operational expenses: From logistics to compliance and staffing, day-to-day costs can add up quickly. Keeping your overheads in check without compromising quality is essential.
Bevica is a fully integrated, drinks-industry-specific business management solution built on Microsoft Dynamics 365 Business Central. We have developed it expertly, with tailored features that specifically address the unique challenges of drinks businesses. These include:
- Inventory management: We offer advanced forecasting and real-time stock visibility, helping you strike the perfect balance between supply and demand. By using Bevica, you can minimise waste and maximise cash flow.
- Cost control: With our precise tracking of distribution costs such as transportation, warehousing, and landed costs, you will gain a clear picture of true product profitability.
- Pricing strategy: Our flexible pricing tools will allow you to adapt to market changes quickly and protect your margins.
- Operational efficiency: Our automated workflows, streamlined logistics, and robust compliance features will help you to reduce manual tasks and operational costs.
Real-life success stories
Many drinks businesses have already seen Bevica’s impact on their bottom line. Take the example of Howard Ripley Wines, a leading UK supplier of fine wines. Their move to Bevica, with our automation capabilities, allowed them to make significant time and resource efficiencies. As a result of their move, they have also made considerable productivity gains in their sales, marketing, and operations teams.
Another success story comes from the UK’s leading wine and spirits supplier, Enotria & Coe. During their long-term partnership with us, they developed a greater understanding of their credit position thanks to easy access to regularly updated data on aged debts. In addition, they have eliminated issues with HMRC reporting thanks to our robust duty management capabilities that flex and adapt to HMRC’s changing demands.
Raise a glass to reducing costs in the drinks industry
In an industry where every penny counts, having the right tools makes all the difference. Bevica’s deep understanding of the drinks sector and its powerful feature set empower businesses to thrive, even when margins are tight. By reducing costs, enhancing efficiency and protecting profitability, Bevica ensures that your business’s brand grows continuously, while you can focus on what you do best — delighting customers.
Ready to discover how we can help your business achieve lasting success? Find out how Bevica can help your drinks business succeed on tight margins and reduce costs by booking a no-strings chat with us today. Alternatively, join our “How much profit are you making?” webinar on 20 March to get a taste of what Bevica can do for your business.
