Transportation is a critical component in the business of beverage alcohol wholesalers. There’s a variety of moving pieces, between the products, employees and fleets, that all need to be handled in a manner that’s fast, efficient and safe for the driver and the product.
So how can companies meet these logistical demands while simultaneously maintaining up-to-date infrastructure?
For CFR Classic, a global shipping and logistics company, they address these challenges with in-house trucking for better schedule control, a global agent network for seamless customs clearance and advanced tracking systems to provide transparency and proactive solutions.
“Transportation logistics today demands reliability, efficiency and adaptability. Companies must ensure goods arrive on time while managing costs and responding to disruptions,” says Joe Giranda, director of sales and marketing at CFR Classic. “These approaches reduce delays and ensure smoother operations.”
As industry and customer needs evolve, Giranda also mentions how important innovation and responsiveness are to staying successful.
“For example, automating warehouse processes and using data-driven planning can help meet customer expectations for faster and more transparent delivery,” he says. “Companies that invest in these areas not only stay competitive but also build stronger relationships with their clients by delivering consistently reliable results.”
Fleet modernization
Modernizing your fleet is an important aspect of maintaining up-to-date infrastructure to meet today’s logistical demands. Rich Pleeth, CEO and co-founder of logistics operator Fin, says the company’s goal is to continuously innovate and scale its fleet, resulting in more efficient and sustainable deliveries.
“We’re a multimodal company, meaning we use the right vehicle at the right time for the right delivery,” he notes. “Seeing as environmental concerns are increasingly important in logistics, we have to find innovative solutions for last-mile delivery. For us, that means using e-cargo bike fleets.”
Fin’s e-cargo bike fleet continues to scale rapidly. First launching in London, the logistics operator is now expanding operations into the United States. More specifically, in New York and Connecticut, with a goal of expanding into additional major cities in the future.
“E-cargo bikes optimizes delivery networks and offers flexible delivery options to meet customer expectations at the right price,” Pleeth says. “We have to look at how companies can adopt sustainable practices while also optimizing technology to reduce fuel consumption.”
Agreeing with Pleeth is Giranda, noting how important fleet modernization is when it comes to sustainable options.
“Many companies are upgrading to fuel-efficient or alternative-fuel vehicles to lower costs and meet sustainability goals,” he says. “Integrating technology like GPS tracking and route optimization enhances efficiency and ensures shipments are trackable in real-time, building customer trust and improving overall operations.”
Mike Bratcher, vice president, operational transformation, Southern Glazer’s Wine & Spirits, suggests that optimizing delivery operations can help distributors better align with the current market struggles. In fact, it’s a strategy that the company itself is employing.
“One strategy we are increasingly exploring is fleet diversification,” Bratcher says. “We have opportunities to leverage more vans and non-CDL vehicles in geographical areas where reaching capacity on a standard CDL truck is challenging. This approach aims to lower costs and gain efficiencies.”
Advanced transportation tracking systems
Time is money. And with the rising costs continuing to plague industries across the nation, brands need to keep customers happy by delivering products on time.
“With the rise of costs, we need to make sure that demands are met and optimize our transportation routes,” advises Pleeth. “In order to find the most efficient routes to minimize time and costs, we utilize AI and machine learning. It gives us sophisticated routes, real-time tracking on shipments and the ability to adapt quickly with any unexpected delays or disruptions.”
AI and newer technologies are being used across all facets of warehouses in order to better streamline processes. Using this technology in the shipment of products is no different.
An example of this can be seen in the way shipping provider DHL utilizes AI to boost operational efficiency, enhance customer interaction, and promote sustainability. According to a case study, AI helps the company to predict demand fluctuations more accurately, allowing for better strategic planning and operational efficiency.
The case study also explains how AI led to DHL implementing self-driving vehicles and aerial drones. These vehicles are engineered to manage extensive routes more effectively while also minimizing expenses.
The AI systems onboard are capable of route optimization, real-time traffic analysis, and adaptive decision-making, according to the case study, which “enhances route accuracy and safety on highways.” By automating long-haul routes, DHL aims to reduce driver fatigue, increase safety, and improve shipment predictability.
“In order to compete in today’s world, you really need to invest in new technology and utilize all of these advanced systems,” says Pleeth. “Ensure that data analytics are integrated to optimize all the processes involved. Companies need to continuously make these investments to keep up with the advancements and maintain a competitive edge.”
For Southern Glazer’s, technology is a key component to elevating the company’s fleet.
“Telematics and in-cab video cameras are key elements to our fleet strategy,” says Bratcher. “We are continually evaluating the data generated from these technologies to find efficiencies while also improving customer service. The in-cab video has been an excellent coaching tool to increase awareness of safe driving behaviors.”
Transitioning to a cloud-based routing tool has also allowed Southern Glazer’s to deliver shipments more efficiently.
“This platform is significantly more robust, enabling us to quickly generate multiple route plan alternatives based on various constraint inputs. It has already shown very promising results in creating more efficient routes.”
Sustainability pays off
Incorporating sustainability into your fleet can not only help reduce shipment costs, but also reduce your company’s carbon emissions.
In October of 2024, DHL and Diageo North America incorporated two fuel cell electric trucks, powered with hydrogen, to their U.S. fleet. The hydrogen fuel cell electric trucks are part of a broader sustainable supply chain strategy for both companies that has included the use of battery electric vehicles, optimizing vehicle usage and routes, shifting to a multimodal approach and increased use of US EPA SmartWay partner carriers. These efforts have resulted in year-over-year reductions in carbon dioxide emissions for both Diageo and DHL.
“Given the cost of living crisis at the moment, we are seeing sustainability being pushed down because it’s expensive to implement,” says Pleeth. “One way that we get around this is by utilizing technology to lower costs.”
Fin’s e-cargo bikes are fully electric and don’t use any fuel, which drastically cuts costs. Adjoined with the use of AI in helping deliver items more efficiently, being sustainable certainly has its perks.
Provide seamless transportation communication
With everything going on in warehouses in a single minute, it can cause communication to falter on different shipments. If a shipment has been ready for a few hours ahead of the appointment time or there is an operational delay in the order preparation, these scenarios need to be relayed to team members as soon as possible to prevent further delays.
This is where AI comes into play yet again. Many technology companies including Locus Robotics, FORTNA and Swisslog offer special tools to implement in warehouses that can help provide seamless communication, in real time, about shipment ready times.
Whether it’s alerting employees of potential delays or notifying them about early ready times, better communication can help reduce idle times, optimize asset utilization and create more efficiency in the warehouse.
On top of providing better communication between employees, AI can also help warehouses communicate with customers. According to the DHL case study, the shipping provider’s customer service automation involves AI-powered chatbots and virtual assistants that are integrated across various customer interaction platforms, including the company’s website, mobile app and social media channels.
DHL’s AI-powered tools are crafted to manage an extensive array of customer requests, including tracking shipments, scheduling deliveries, addressing concerns and furnishing data.
