A Supply Chain Under Pressure
Let’s talk about alcohol. Not the kind in your glass, but the kind sitting in a warehouse, waiting to be picked, stacked, sequenced, and delivered.
In the world of beer, wine, and spirits (BWS), the supply chain is fragile, fast-moving, and heavily regulated. The industry is navigating a perfect storm of complexity: SKU proliferation, rising consumer expectations, labor shortages, and increasing regulatory and sustainability pressures. As demand for customized, premium, and craft beverages continues to grow, warehouses and distributors must adapt quickly and intelligently to remain competitive.
To understand the real-world automation challenges in BWS distribution, we sat down with Billy Birch, Solution Consultant at Conveyco, who brings decades of experience in automation and BWS logistics, to unpack the trends, challenges, and real-world solutions reshaping the industry today.
The Three Tier System: Complexity Built into the Model
The alcohol supply chain follows a strict three-tier system:
1. Manufacturers (Winery, Brewery)
2. Distributors
3. Retailers
This model ensures compliance, market fairness, and tracking of all products. But it also adds complexity to logistics operations, especially at the distributor level, where orders often consist of mixed products in varying case sizes; each destined for different retailers.
Manufacturer-Level Automation: Predictable, Palletized, and Ready for Optimization
At the manufacturer level, most operations are pallet-based and relatively uniform, making them a strong fit for:
- AS/RS systems
- Robotic palletizers
- Crane-based storage systems
Billy highlighted a case where AMRs and robots were used to create mixed-keg pallets, something once considered too complex for automation.
However, even at this level, seasonal peaks present challenges. “These warehouses aren’t built for peak, they are built for average days,” Billy noted. Significant changes are necessary, and advancements in software offer substantial promise in facilitating the management of these transformations.
Distributors Face the Toughest Challenge
Distributors deal in complexity:
- Mixed SKU case picking
- Irregular product shapes (especially in beer)
- Sequencing for efficient delivery loading
- Smaller, unstable pallets
- Tight delivery windows
Many even still rely on manual case picking and hand-built pallets, because existing automation was not adapting fast enough. But that’s changing, with advancements in technologies and software like Robotics, AI, WES, AMRs, AS/RS and more.
As Billy explained, “Sequencing is everything. If you get that right, everything down the road gets easier.”
The Real Bottleneck: Outdated Software
For many operations, the hardware isn’t the issue - it’s the outdated software that can’t keep up. “Most of these operations are still using legacy WMS systems,” Birch said. “What they need is new software that can handle sequencing, dynamic palletizing, and the real complexities of today’s orders.”
If your software can't keep up, even the most advanced hardware can underperform.
Five Questions to Ask Before Automating Your BWS Operation
Before investing in automation, BWS operations should ask:
- Can your WMS handle SKU volatility and case-level sequencing?
- How do you handle overflow storage during seasonal peaks?
- Are your pallet loads optimized for safety, stacking, and retailer requirements?
- Is labor walking around too much or touching products unnecessarily?
- Do your software and automation platforms actually integrate?
Conveyco + New Dawn WES: Built for the Beverage Supply Chain
At Conveyco, we understand that every distribution operation is unique, even within the same industry. Beer, wine, and spirits operations face distinct challenges at every tier of the supply chain, and the key to managing them is enhancing your hardware with smarter software like we mentioned above.
That’s why we built New Dawn, Conveyco’s Warehouse Execution Software, to identify and address the specific needs of each facility. Unlike traditional WMS systems, New Dawn seamlessly integrates people, processes, and automation, delivering a flexible orchestration layer that keeps your operation aligned, responsive, and optimized.
Billy Birch emphasized the importance of sequencing, pallet stability, SKU variability, and space limitations across the beverage landscape. New Dawn is designed for exactly that kind of complexity. Whether it’s:
- Orchestrating Mixed-SKU pallet building for beer
- Handling rigid corrugate in wine and spirits
- Adapting to delivery deadlines and maximize use of space
- Modernizing outdated systems without full rip-and-replace
...New Dawn delivers.
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The Bottom Line
Automation is about building intelligent, flexible, and integrated systems that can scale with your business. With SKU proliferation, regulatory constraints, and labor shortages on the rise, it’s never been more important to automate the right way.
At Conveyco, we design systems that solve problems. Experts like Billy Birch bring the deep industry knowledge that insures your investment is worth it.
Whether you’re in beer, wine, or spirits, Conveyco can help you design a smarter, more scalable warehouse. Ready to get started? Contact Us Today!
With over 25 years in the material handling industry, Billy Birch brings a unique blend of experience, creativity, and hands-on expertise to every project. He got his start on the installation side as a teenage, drawn into the business by his dad, and quickly made his way through roles in sales, system design, ergonomics, and even running his own small integration business. Most recently, Billy spent seven years in the Autonomous Mobile Robot (AMR) space before returning to his roots in system design and integration.
Today, as a Sr. Solutions Consultant at Conveyco, Billy brings a problem-solver's mindset to every project. He's passionate about tackling complex challenges and finding the best-fit solutions, especially if it means getting creative and breaking out of the usual boxes. His decision to join Conveyco was driven by its long-standing industry reputation, family values, and the flexibility to explore a wider range of technologies beyond niche offerings.
Outside of work, Billy is all about family, barbecue, and building things. Whether that be a custom woodworking project or the next great automation strategy. He's a proud NC State Wolfpack fan, dad of 2, and lives in a household that may or may not play Taylor Swift on repeat (his wife and kids are fans and he is just along for the ride).
