Do you really need to buy more kegs?

Take 3 minutes to read this and you could save thousands in new keg costs

Step 1:

Map your supply chain

Take a moment to map the journey your keg takes from your brewery to the tap & back again.

This is the backbone of how most  breweries plan their business operations and logistics costing.

Step 2:

Time your supply chain

For each stage in the distribution cycle, assign the length of time it should take a keg to pass through this stage.

Remember, we’re working with averages here, close enough is good enough! You may end up with something like the timeline below.

1 - 5 Days
Brewery

Keg is filled with delicious beer at a brewery

1 - 2 Days
Transit to Warehouse

Full kegs are transported from the brewery to warehouses to await sale

0 - 14 Days
Warehouse

Stored in warehouse until sold

1 Day
Transit to Distributor

Many orders are collected  by a 3PL for the kegs to be distributed nationally

0 - 7 Days
Storage at Distributor

The distributor stores the full kegs until sold

1 Day
Transit to Venue

The full keg of beer is shipped to the customer

14 Days
Consumed at the Venue

The beer is tapped and sold at the venue

1 - 3 Days
Transit to Warehouse

Empty kegs are returned to a warehouse

0 - 14 Days
Warehouse

Stored in a warehouse until requested by a brewery

1 Day
Transit to Brewery
Empty kegs are returned to the brewery
1 - 3 Days
Brewery

Empty kegs are cleaned and ready to be filled with fresh, delicious beer

33 – 62 Days Total

47 Days Per Turn

8 Turns Per Year

Step 3:

Rate your supply chain

Now it’s time to look to your sales records…

How many kegs of beer did you sell last year?

How many kegs are in your fleet?

For our example above, let us assume we sold 400 kegs in a year, and we have 100 kegs in our fleet.

Our numbers of turns would be 4 per keg and our average turn would be 91 days.

If you feel confident that your timeline is correct and that your current Number Of Turns is the same or similiar to your Expected Turns Per Year; then you should buy more kegs.

If not, then you should consider optimising your existing fleet.

What does this mean? Take a look back at your numbers… 

At step 2 you determined how many turns your kegs should make each year.

At step 3 you calculated how many turns your kegs do make each year.

By dividing the answer at step 2 by the answer at step 3, then multiplying by 100, you calculate the extra capacity in your existing fleet.

For example:

				
					Example A           8              
--------- x 100  =  - x 100  =  200% Capacity
Example B           4              


				
			

i.e. This brewer could be making double the sales with their existing fleet!

But how?

Usually brewers look to buying more kegs when they are already struggling to get kegs in the door to be refilled. How can they get more sales out of their current fleet?

More importantly, how can you?

With KegLink!

KegLink keeps track of your kegs 24/7, reporting back to you no matter where they are in their ‘journey’. With simple actionable reports and customisable alerts, you have all the information you need to get your kegs moving and keep them moving, speeding up your keg turns!

What would doubling your sales mean to your brewery?

 In our example:

Assuming 20% profit margin on a $240 sale price

				
					100 Kegs x (8 Optimised Turns - 4 Existing Turns) x 20% Profit x $240 Sale Price 

= $24,000 additional profit
				
			

I can hear your thoughts, you’re thinking ‘sure, but now I’ve got to make those sales‘, and you’re right. Check out our benefits page to see how KegLink can help you sell more beer!

But the question was ‘do you need to buy more kegs?’, so lets do a quick comparison of buying kegs vs upgrading your kegs.

Buy More Kegs

Double the capacity of your keg fleet by buying more kegs.

From our example:

100 kegs x AUD$150 per keg

= $15,000 (ROI: 160%)

Upgrade to KegLink

Double the capacity of the fleet by upgrading the entire fleet.

From our example:

100 kegs x $3.50 per month x 12 months

= $4,200 (ROI: 571%)

72% Cheaper to Upgrade to Smart Kegs

KegLink also brings heaps of other benefits that help you sell more beer & grow your business. 

Before you buy more kegs, consider upgrading your existing fleet with KegLink

Sign up for our demo now and see how KegLink™ will revolutionise your business

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