In the beer distribution landscape, the recipe for success isn't just about the cold ones we serve; it's also about making sure those brews are there when our customers need them. Summit Distributing, a hard-hitting Midwest beer distributor based in St. Louis, Missouri, cracked the code on this challenge, and their journey offers some valuable insights.
Juggling the flow of over 2,000 beer SKUs to almost 3,000 thirsty retail customers throughout the Midwest isn't a walk in the park. The challenge? Getting each retailer stocked with the right beers at the right time. It's a logistics puzzle that would give anyone a headache.
Initially, Summit's sales reps had a daunting task at hand. Imagine managing countless customer accounts, each demanding up to 250 different beer SKUs. The ordering process was like a game of darts in the dark - sometimes you hit the bullseye, sometimes you didn't.
Under-ordering meant dry taps, or empty shelves and unhappy customers. Over-ordering led to excess inventory and stale beers. It was a lose-lose situation that was affecting Summit's profit margins.
Enter Kim Barrow, Summit's President and COO. He saw this logistical juggling act for what it was – a complex problem needing a sophisticated, yet manageable solution. Understanding the limitations of manual estimations, he recognized the need for a tool that could automate and optimize the ordering process.
With the help of VIP (Vermont Information Processing), they developed a game-changing solution: the Sales Order System (SOS). This was no magic trick; it was a system fueled by data analytics, capable of predicting the optimal order quantity for every SKU. With SOS, sales reps could place accurate orders, resulting in fully stocked retailers and no more guesswork.
But as Kim realized, even the smartest tech is useless if the sales team isn't trained to leverage it properly. The industry, is known for its high turnover rate and a young workforce, Summit needed a standardized, effective training approach. Hence, a robust training program was the missing piece of the puzzle.
To implement this, Summit partnered with Learning Evolution, LLC, a company with two decades of experience in training, and Thomas Fox a leading industry sales training expert. Learning Evolution selected the Learn to Win platform for it's robust microlearning framework and training analytics. They helped transform Summit's training materials from PDF's into engaging, bite-sized digital content perfect for the modern workforce. This allowed Summit to track employee engagement and performance, ensuring their sales reps were equipped to make the most of SOS.
The result? A stunning 96% reduction in out-of-stocks. Summit’s new sales order process, combined with a comprehensive training program, led to impressive operational benefits. The time spent merchandising stores dropped by 83%, reducing costs by a whopping 70%.
What does all this mean for beer distributors? It’s a clear sign that marrying technology with effective training is a surefire recipe for success. Summit Distributing's story isn't just about eliminating out-of-stocks; it's about enhancing efficiency, boosting profit margins, and ultimately, keeping the beer flowing.
Want to learn more?
Don't let the taps run dry! Join Summit Distributing and many other industry leaders who are transforming their business operations. Discover how Learning Evolution and the Fox Selling System can help you keep your beers flowing, your customers happy, and your profit margins healthy.
Don't just take our word for it. Click here to learn more about Learning Evolution's proven strategies, and here to explore how the Fox Selling System can streamline your distribution process. Step into the future of beer distribution today – we're here to guide you every step of the way. Or call us at 1-619-342-7787. Ask for Jim or Scott.