Does Outsourcing Your Drinks Warehouse Save Money? | UK Drinks 3PL Guide

So, you're a drinks producer and you're starting to question whether you should bite the bullet and invest in your own warehouse, or outsource your storage and logistics to a third party.

On paper, owning and managing your own warehouse for storage sounds attractive... more control, everything under one roof and maybe even a shiny new forklift or two to show off.

But as every drinks producer who's purchased or leased their own warehouse knows, there's a lot more you have to pay for than just the rent costs:

1. Warehouse utility bills
2. Hiring & training staff
3. Purchasing racking
4. Forklift purchasing
5. Insurance for staff injury/stock protection

At first, outsourcing your warehousing can look like the cheaper and much simpler option. After all, a drinks specialist 3PL does take all that hassle off your plate.

But is outsourcing your warehousing actually worth it in the long run, or does it just shift the costs elsewhere?

For UK breweries, wineries, distilleries and no-and-low producers, the answer is rarely black and white. It comes down to understanding the difference between cost centres (such as warehousing) and revenue drivers (such as brewing more beer or distilling more spirits).

When you look at it this way, outsourcing may be your best bet at unlocking both savings and growth opportunities.

Warehousing: Cost Centre vs. Revenue Driver

Your brewery is where the magic truly happens. Every square foot dedicated to brewing/distilling will directly contribute to your sales (where the profit lies).

Compare this with warehousing for drinks storage (holding stock, preparing orders and dispatching), which is purely a cost centre. When you manage your warehousing in-house, you're paying for:

1. Fixed cost: e.g. rent, utilities and staff wages
2. Empty space: storage that fluctuates depending on seasonal demand
3. Operational inefficiencies: labour costs that are tied to unpredictable peaks

By outsourcing your warehousing to a drinks 3PL, you'll convert many of these fixed costs into variable costs:

1. A 3PL will only charge you for the space you use (no more rent charges for a half-empty warehouse)
2. A 3PL will only charge you per item/literage dispatches (no more paying for full-time staff just to handle seasonal peaks)
3. A 3PL will handle a drinks delivery fleet, fuel costs, compliance, driver wages, etc., under one price (no more fleet headaches)

The Hidden Flexibility (and Savings) of Outsourcing

One big financial benefit of outsourcing your warehousing is flexibility. As all drink producers know, demand is very rarely steady; it's seasonal, promotional and event-driven.

Here's how a 3PL can help turn fixed drinks logistics costs into flexible costs:

1. Stock holding: When you produce a big batch of beer during brewing season, your drink storage needs will increase. But when your sales dip during Dry January, your storage needs will shrink again. When renting your own warehouse, you pay the same for storage year-round, regardless of how many litres you are actually storing.
2. Dispatching: having an in-house warehouse team means paying fixed wages, regardless of order volumes. A drinks 3PL can scale its own staff and processes, taking the pressure off of drinks producers. No more wasting money on staffing when orders are light.
3. Storage costs: no more fixed warehouse rent and wasted square footage- a drinks 3PL like Tap'in will only charge drink producers for the storage they use

This flexibility is often where a goldmine of savings lies, especially when comparing outsourced warehousing to in-house warehousing.

Why Drinks Producers Should Focus on Revenue Generators

Every penny spent on warehousing is a penny not spent on what can actually make you money as a drinks producer: brewing or distilling.

If your own warehousing facility is tied up with pallets of stock, that's valuable space you can't use for:

1. Increasing production (e.g. more space for brewing equipment)
2. Trialling and testing new drink flavours or limited edition releases
3. Expanding your taproom for a better visitor experience

By outsourcing the expensive stuff, like storage, order picking & packing, and last-mile delivery. You free up space, time and money to focus on the real revenue-generating activities.

Outsourcing to a Drinks-Specialist 3PL vs. Generic 3PL

Not all outsourcing is created equal!

Drinks logistics comes with a set of unique challenges: fragile bottles, varying product sizes (30L kegs, 50L kegs, 12-packs of cans... you name it), duty compliance and the (overlooked) challenge of protecting your drinks brand's reputation.

A drinks-only 3PL understands drink producers' pain points than a generic 3PL might, which is why many UK drinks producers choose to partner with Tap'in 3PL. Partnering with a specialised drinks 3PL means you're not just saving money- you're also avoiding the costly mistakes of mis-picks and broken stock.

Final Thought: Is Outsourcing Your Drinks Warehousing Right For You?

For UK drinks producers, outsourcing warehousing isn't just about cutting costs- it's about being smarter with your business expenditure. By turning your drinks storage, stockholding and drinks order fulfilment into flexible costs, you free up capital and space for the things that truly grow your drinks brand.

If your drinks warehouse facility is bursting at the seams, or you're paying for warehouse space you don't always fully use, it's time to ask yourself: could a drinks 3PL save me money and help my business continue to scale?

Tap'in 3PL: The UK Drinks Logistics Provider

At Tap'in, we specialise in providing next-day UK drinks delivery in to London and the South East.

Our tailored UK drinks logistics services are designed to meet your brand's own unique drinks operations needs. We build bespoke quotes for each and every client we onboard to ensure that your drinks are delivered quickly, safely and to high standards.

Whether you need to get your beers to a London pub, wine to a retailer in Brighton, or spirits to a bar in the Home Counties, Tap'in offers reliable and cost-effective delivery solutions.

What are the benefits of Tap'in 3PL?

1. Next-Day UK Drinks Delivery: Tap'in offers next-day delivery services across London and the South East, ensuring that your products are quickly delivered to your customers, whether they are bars, retailers or direct-to-consumer clients.

1. London delivery 4 days a week: We deliver drinks into key London postcodes up to four times a week, making it easier for your products to reach one of the most competitive markets in the UK. Our regular delivery schedule ensures your products are always available when your customers need them.

1. Pallet Network for Broader UK Reach: While our core focus is on London, Brighton and the Home Counties, we also offer Pallet Network delivery services to reach other areas in the UK. Whether you need to fulfil larger orders or expand your distribution network, our expert logistics team can help organise Pallet Network service provisions for a more flexible solution.

Let Tap'in handle the logistics so that you can focus on creating exceptional drinks and growing your brand.

Fill out our contact form below, and our expert team will get back to you to discuss your bespoke quote as soon as possible.

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