Lowering Logistics Costs in Food & Beverage Supply Chains Using Decision Intelligence

The food and beverage (F&B) industry is undergoing a seismic shift as it grapples with challenges on multiple fronts. From evolving consumer expectations for personalization, transparency, and sustainability to rising operational costs, the complexities of supply chain management have never been greater. These dynamics are compounded by the volatility of global markets, labor shortages, and unpredictable disruptions in logistics.

To stay competitive, food and beverage companies must rethink how they approach supply chain management, particularly in the realm of logistics. Many organizations struggle to maintain a balance between reducing costs, meeting service demands, and adhering to environmental commitments. This makes innovation and smarter decision-making critical for survival.

The Logistics Cost Challenges of F&B Supply Chains

Managing logistics in the food and beverage sector has become increasingly challenging. Companies are under pressure to address the growing costs of energy, transportation, and labor, while maintaining affordability for increasingly price-sensitive consumers. Efficient logistics management is no longer just an operational necessity — it is a critical driver of profitability and customer satisfaction.

Yet lowering the cost of logistics presents a unique set of hurdles. Fluctuating fuel prices, increased regulatory compliance for sustainability, and difficulties in securing reliable transportation partners have all added layers of complexity to logistics operations. Additionally, companies must contend with shrinking delivery windows driven by rising consumer expectations for speed and convenience. These factors create a delicate balancing act: companies must reduce expenses without compromising service quality, environmental sustainability, or supply chain resilience.

F&B companies encounter a range of systemic challenges that hinder their ability to achieve logistics efficiency:

• Data Silos. Critical logistics and transportation data often exist in disconnected systems, making it difficult to access and utilize effectively.
• Lack of Integration. Limited connectivity between logistics providers prevents companies from achieving real-time visibility into inventory levels and transportation risks.
• Sustainability Tracking Challenges. Measuring and reducing carbon emissions tied to logistics remains a complex and under-addressed issue.

Traditional tools and manual processes often fail to address these challenges, leaving companies unable to integrate diverse data streams or anticipate inefficiencies. The result is higher operational costs, increased emissions, and suboptimal service levels that fail to meet consumer and regulatory expectations. These challenges underscore the need for a more sophisticated, data-driven approach to lowering the cost of logistics.

Aera Decision Cloud: Optimizing Logistics Spend with Decision Intelligence

Aera Decision Cloud provides a transformative solution for F&B companies seeking to optimize logistics operations. By leveraging advanced analytics, automation, and real-time decision intelligence, Aera enables companies to tackle logistics challenges head-on. The platform offers a suite of Skills designed to drive efficiency and sustainability, including:

• CO2 Emissions Management tracks and analyzes transportation-related carbon emissions, offering actionable insights to reduce environmental impact without compromising cost efficiency.
• Efficient Shipping and Stockout Prevention dynamically plans and adjusts shipment schedules and routes to maximize truck utilization, eliminate unnecessary shipments, and ensure timely product availability.
• Logistics Event Management monitors logistics operations in real time, flagging potential delays or disruptions and providing actionable recommendations to mitigate risks of stockouts or delivery failures.

By adopting these Skills, food and beverage companies can achieve measurable improvements in logistics performance:

• Lower costs of fuel and labor by 5-15% by optimizing transportation schedules and improving truck utilization.
• Enhanced sustainability by reducing transportation emissions and waste through better logistics planning.
• Improved visibility through real-time insights into logistics operations, enabling faster, more data-driven decisions.

With Aera Decision Cloud, logistics management becomes a more cost-effective, sustainable, and agile process. It empowers companies to align operational efficiency with the increasing consumer and regulatory demands for transparency and environmental responsibility.

A Real-World Success Story

The transformative power of Aera is best illustrated through real-world examples. Consider the case of a leading confectionery company that faced significant logistics inefficiencies, including poor truck utilization, delayed stock movements, and manual trans-shipping processes. These issues not only drove up costs but also limited visibility into stock levels, resulting in suboptimal inventory placement across warehouses.

The company turned to Aera’s Decision Cloud, leveraging the platform’s Stock Rebalancing and Logistics Optimization Skills to streamline its operations. Aera’s tools automated stock transfer orders and optimized truckloads, dynamically adjusting shipments based on real-time signals. This approach delivered dramatic results:

• $14M in losses prevented by identifying expiring products early.
• $5M in logistics cost savings through improved planning.
• 87-95% truck utilization achieved.
• 6,000 fewer trucks on the road annually, reducing environmental impact.
• 80% reduction in planner workload, saving $680K in logistics labor costs.

By replacing reactive processes with automated, data-driven decisions, the company significantly improved both cost efficiency and sustainability. Optimized truck utilization not only reduced transportation expenses but also minimized carbon emissions. Meanwhile, automating stock transfers allowed planners to focus on strategic, high-value tasks. Aera’s integration of sustainability considerations into logistics operations demonstrated its ability to balance cost savings with environmental goals.

The Future of Inventory Management

As the food and beverage industry continues to evolve, its success will depend on the ability to navigate increasingly complex supply chains with agility and precision. Aera Decision Cloud provides companies with the tools they need to meet these challenges head-on. By harnessing the power of decision intelligence, F&B businesses can streamline their logistics to reduce spend and deliver exceptional customer experiences — all while aligning with the growing demand for sustainability.