Navigate Your Way to Mastering Route Planning for the Beverage Distribution Industry

• Beverage distribution is unique in that various aspects of the business need to be considered in the route planning process. 
• Manual, driver-centric routing limits efficiency and can lead to unbalanced loads, underutilized trucks, and increased operational costs. 
• Right-sizing the fleet helps reduce labor and fuel costs while improving service levels and fleet utilization across on-premise and off-premise deliveries. 
• Gradual adoption of delivery route optimization (using a “crawl, walk, run” approach) allows distributors to implement advanced solutions at their own pace, minimizing disruptions. 

Managing route planning in the beverage distribution industry is a complex balancing act. Businesses must juggle on-premise and off-premise deliveries—each with unique requirements—while navigating customer relationships, service time windows, vehicle constraints, and the ever-present pressure of market competition.  

But there’s good news. With the evolution of technology, advanced route planning solutions can help you conquer these challenges head-on. By leveraging flexible solutions that provide accurate data, you can fine-tune your delivery routes to maximize operational efficiency, satisfy customer demands, and protect your bottom line.

Despite advancements in technology, many beverage distributors still rely on manual route planning, often using basic “drag-and-drop” practices and relying on the experience of seasoned employees—also known as tribal knowledge.  

While these methods worked well in the past, they severely limit operational efficiency in today’s fast-paced environment. Here’s why: 

• Lack of data-driven decision-making 
• Prioritization of sales and/or merchandising needs over logistical optimization 
• Limited consideration of operational and customer service requirements 

To move beyond these limitations, businesses must take a holistic approach, considering their entire distribution network and each customer’s unique operational environment. 

Traditionally, many beverage distributors built their routes around the needs of drivers, often using outdated pedal routes or static route designs that rarely changed. In the past, this made sense when drivers would sell products directly off the truck. In today’s pre-sales-driven world, these approaches create inefficiencies that companies can no longer afford. 

Focusing too heavily on driver preferences or warehouse convenience without considering operational goals can lead to: 

• Overservicing an account 
• Underutilized trucks 
• Inefficient runtime management 

The key to solving these issues is shifting toward company-focused routing, where delivery routes are optimized based on business goals like cost reduction, balanced workloads, and on-time delivery—rather than driver convenience. 

Modern routing tools offer solutions that balance driver satisfaction with operational efficiency. They dynamically route trucks based on key factors such as service windows, customer open/close times, and even real-time traffic. This approach is crucial for beverage delivery services that need flexibility for both on-premise delivery and off-premise delivery customers.  

Another critical aspect of route optimization software for beverage and beer distributors’ delivery is right-sizing the fleet. Many distributors continue to use vehicles such as labor-intensive side loaders, which are challenging for the aging workforce and aren’t as efficient as other types of delivery trucks. 

• Reduced operational costs 
• More effective route planning 
• Fewer trips and improved vehicle utilization 
• Enhanced service levels 

A consultative approach that evaluates both fleet size and type will help beverage distributors better align their resources with operational goals. In doing so, they can effectively manage their beverage delivery truck fleets, ensuring timely deliveries across their network. 

No two businesses are the same, and route planning solutions should reflect that. Whether you’re managing a small fleet or a large, complex beverage operation, choosing the right routing solution is crucial. A comprehensive platform offers flexible solutions that cater to businesses of all sizes—from simple, static routing models to hybrid and fully dynamic solutions. 

Many companies are concerned about diving into complex routing technology without being fully prepared. A “crawl, walk, run” approach to achieving maximum operational efficiency can look like this: 

1. Recut master routes to adjust for demand fluctuations and seasonality and eliminate inefficiencies. 
2. Implement dynamic hybrid routing to keep consistency with key customers and dynamically service others. 
3. Transition to a routing solution that is primarily dynamic, blending on- and off-premise customers on the same truck. 

This gradual approach ensures businesses can adopt routing solutions that suit their current needs while still having the flexibility to grow and evolve over time. 

Descartes works with leading beverage distributors to transform their route planning and execution strategies. Learn how Mitchell Distributing and Pepin Distributing are leveraging Descartes’ advanced delivery route software to optimize their distribution networks, streamline operations, and achieve measurable improvements in service and efficiency. 

• Doubled rerouting frequency: Rerouting is now completed at least biannually, allowing the company to adapt quickly to seasonal demands. 
• Enhanced driver productivity and retention: Routes are now balanced, reducing overtime and making drivers’ days more predictable, which has boosted retention. 
• Increased service precision for sales: Automated tracking of arrival and departure times allows sales reps to provide better service times and prioritize key accounts more effectively. 

With Descartes, Mitchell Distributing achieved more balanced operations, reduced labor costs, and enhanced customer and driver satisfaction. 

• Enhanced operational visibility: Real-time tracking of merchandisers, sales, and delivery routes enabled more effective communication and resource allocation. 
• Boosted productivity: Teams now start their day earlier, avoiding traffic and maximizing service time. 
• Data-driven decision-making: Detailed reporting allows Pepin to assess route efficiency, monitor individual performance, and drive continuous improvement. 

Pepin Distributing’s use of Descartes’ logistics optimization technology has led to higher productivity, better decision-making and time management, and improved service consistency. 

Beverage distribution is a complex, relationship-driven industry that demands precise, efficient logistics to remain competitive. Today’s market challenges require companies to rethink distribution strategies and assess the impact of logistics on both the top and bottom lines. 

By investing in dynamic, customer-centric route planning solutions, distributors can streamline operations, reduce operational costs, and enhance fleet productivity and customer satisfaction. Descartes supports beverage distributors globally with an integrated suite of routing, mobile, and telematics solutions, enabling them to adopt new business models and accelerate forward in a changing market. 

Businesses that implement Descartes' advanced route optimization tools are well-positioned to meet the unique demands of the beverage distribution industry. Through right-sized fleets, dynamic routing capabilities, and a gradual approach to technology adoption, distributors stay flexible, responsive, and competitive. 

Ready to optimize your last-mile delivery strategy? Contact a Descartes solution expert to explore how our solutions can help you achieve your operational goals and drive measurable results.