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INDUSTRY 4.0/SMART FACTORIES
B
ritish alcohol businesses have experienced a period of revolution in recent years with the rise of craft beers, artisanal wine and spirits and even low- or non-alcoholic options. While Britain has
always been a pioneer in the alcohol space, with plenty of demand from customers year-round, consumers have been shifting away from pubs and bars towards at-home drinking experiences fuelled by e-commerce and rising prices. Alcohol wholesalers, manufacturers and distributors must, therefore, find ways to adapt to meet and beat the competition – and it all starts in the warehouse.
IS TROUBLE BREWING? In the UK, the alcohol market is estimated to be worth £18.4bn, and home delivery services are increasingly contributing to this post-pandemic. From craft breweries and natural wine shops, to whiskey distilleries and cocktail bars, many alcohol manufacturers and retailers have established an online presence to tap into this growing market, which is expected to grow by five per cent year on year between 2024 and 2029. There is a mindset shift around alcohol for many Brits too, as people turn to low- and no- alcohol products, reflecting increasingly health-conscious attitudes. Coupled with the current economic climate, this means that when they do want to drink, customers are spending more time finding the ‘right’ product, choosing quality over quantity. This has been great news for established
wholesalers who have been in the market for some time and are known for their premium products. However, the surge in options for consumers has created a competitive landscape for manufacturers, retailers and wholesalers alike, and has had a knock-on effect for some of the big names who may be unable to adapt fast enough. Businesses need to be able to prepare and
AVOIDING A HANGOVER:
THE BENEFITS AND POTENTIAL OF WAREHOUSE AUTOMATION IN THE ALCOHOL INDUSTRY
distribute orders quickly, more efficiently and at a lower cost in order to maximise on the opportunities the current climate presents, or risk falling short.
UNCORKING THE WAREHOUSE CHALLENGE The answer to this is flexible warehouse automation. After decades of growth in an industry fuelled by “Franken-systems”, which combine mechanisation, pick-and-packing, and intensive labour to move heavy, fragile, and expensive cases, alcohol distributors have hit a wall. Traditional warehouse operating systems are in need of an upgrade, and there is pressure from all sides, including labour shortages and the disruption caused to fulfilment operations driven by the increase in direct-to-customer deliveries. While automation is not a new concept in the
UK, traditional automation is sized on anticipated volume and type of orders based on a long period of time. As a result, traditional picking technology and equipment is no longer enough to support the alcohol warehouse environment of today. Instead, robotics has huge potential to support the complex demands of customers in 2024 and beyond.
14 MAY 2024 | FACTORY&HANDLINGSOLUTIONS
By Simon Jones, senior sales executive at Exotec
SERVING UP A TREAT In a warehouse environment dealing with home delivery fulfilment as well as store deliveries, there is a need for flexibility and the ability to scale, while ensuring that order cycle times are minimised. This is especially important as many
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