Just like a steady flow of spirits keeps a party going, a constant flow of inventory keeps your liquor store’s bottom line growing.
But what happens when something disrupts that flow?
Liquor supply chain issues can put a major dent in your liquor store’s success, clearing out your shelves, frustrating your customers, and plummeting your sales.
That’s why we’ve created this quick guide to liquor supply chain issues. Keep reading to learn what causes inventory disruptions and get our top three tips for minimizing their impact.
What Causes Liquor Supply Chain Issues?
If you’ve noticed that it’s more difficult or expensive to stock your store in recent years, you’re not alone. Liquor retailers across the country have experienced stockouts at higher rates than ever.
Let’s take a look at some of the underlying causes of liquor supply chain issues:
- The COVID-19 pandemic has had lasting effects on supply chains in all industries, and the disruption resulted in less liquor being manufactured while demand stayed high.
- Some liquor manufacturers have struggled to hire enough workers, which has slowed down liquor production.
- Economic shifts have made the raw materials, tools, and warehouse space needed to manufacture large amounts of liquor more expensive.
- Packaging materials like glass and aluminum are more difficult to secure, which puts a major speed bump in the liquor bottling process.
- Once liquor has been bottled and is ready for transport, a truck driver shortage has lengthened the distance between manufacturers and liquor stores.
While these factors are largely out of your control, there are some strategies you can use to make the most of your inventory and minimize the impact of liquor supply chain issues on your bottom line.
3 Steps To Take Before Liquor Supply Chain Issues Strike
When it comes to supply chain issues, being proactive is always better than being reactive. Here are three tips to help you prepare for and handle liquor supply chain issues.
1. Diversify Your Liquor Suppliers
Relying on a single supplier to stock your store can seem tempting, but in the event of liquor supply chain issues, it can be a disaster.
If your sole supplier can’t provide your bestselling spirits, you’ll have no one else to turn to, resulting in empty shelves, lost sales, and disappointed customers.
That’s why it’s so important to build relationships with multiple suppliers. A wide variety of vendors can fill the gaps in your store’s inventory and ensure your customers always have an excellent selection of liquors to choose from.
We also recommend looking into local distilleries, breweries, and wineries to stock your shelves. These suppliers offer unique, hard-to-find products, and they’re often immune from industry-wide supply chain problems. Plus, stocking local liquors, beers, and wines sets your store apart from the competition — bringing more customers through your door and checkout line.
Diversifying your suppliers is well worth it, but managing all these vendors can be tricky. To make restocking a breeze, your best bet is to leverage a liquor point of sale (POS) solution with features like vendor management, automated purchase orders, and automated receiving.
2. Lock in Your Liquor Inventory Management Approach
Liquor supply chain issues can wreak havoc on your store’s bottom line, and lackluster inventory management practices can multiply their effect.
Imagine you frequently run out of your shoppers’ go-to brand tequila. Then, supply chain issues make this brand even harder to come by.
Since you’re already behind on your tequila stock, it will be nearly impossible to build your inventory levels back up — and your customers will likely visit another liquor store for their favorite margarita ingredient.
Fortunately, a liquor POS system with built-in inventory management software can make it easy to keep your store perfectly stocked. Look for a solution with features like:
- Real-time inventory monitoring, which gives you an overview of exactly what you have in stock at any time, from anywhere
- Automated purchase orders and receiving, which make restocking your store effortless and prevent costly stockouts
- Advanced reporting and analytics tools, which reveal your inventory turnover rates, bestselling and underperforming products, and more
Leveraging this powerful tool can help you maintain a well-stocked liquor store, whether you’re dealing with liquor supply chain issues or enjoying a steady flow of inventory.
3. Forecast Your Demand and Account for Seasonal Trends
When it comes to liquor supply chain issues, preparation is key. Thinking ahead is particularly important during seasonal fluctuations.
If you’re a liquor retail veteran, you know how your shoppers’ product preferences and habits change with the weather. In the warmer months, they’re in search of ice-cold beers and fruity liqueurs, but when winter rolls around, they’ll search for warm spirits and giftable bottles of wine.
Stocking up with these shifts in mind is crucial for your store’s success — especially if you’re expecting liquor supply chain issues.
To stay one step ahead of your customers and the liquor supply chain, set aside time to dive into your POS system’s sales reports. These will reveal your sales trends, product popularity, and customers’ behaviors — all of which can help you forecast customer demand and meet it with ease.
Stir Up Liquor Store Success With Bottle POS
Ready to tackle liquor supply chain issues head-on? You need the right strategies and the right tools.
Most importantly, you need a powerful POS system like Bottle POS. Our software is equipped with robust inventory management and reporting features to help you manage your liquor vendors, maintain the perfect balance of stock, and understand how your sales trends and customer preferences are changing over time.
See Bottle POS in action by scheduling a live demo with one of our liquor industry experts today.
