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Beverage marketers are especially susceptible to seasonal demand, economic shifts and new trends—so the ability to adapt on the fly with your operations can be key to driving profits. Insourcing inherently limits your company’s ability to scale resources reactively up or down to meet market demands, making it a far less cost-effective solution in the long run than it might first appear.

At HH Global we offer our clients the ability to adapt to changes without the financial strain of fixed costs. It helps you achieve a level of enhanced operational efficiency and scalability that would be difficult to replicate internally—delivering significant warehousing, logistics and POS savings. Outsourcing your supply chains to us can also offer you greater resilience, with a diversified supplier base and strong contingency plans protecting your brand from market disruptions—while giving you the added benefit of our deep focus on responsible process and sustainable materials.

As the trusted partner to the world’s leading brands including Adidas, Suntory Global Spirits and Samsung, we ensure consistent operations, maintaining high standards in client engagement, service and delivery. We work with many of the world’s biggest brands like Diageo, Coca-Cola and Suntory Global Spirits—and our 98.45% on-time shipment rate across the beverages sector in 2024, in addition to our 98% client satisfaction rate have both been invaluable in maintaining their reputations.

Here, we’ll expand on these points; revealing the challenges some popular cost-cutting measures can create—and how our services are designed to help you navigate those challenges in an efficient and cost-effective way.

Challenge #1: A lack of in-house logistics solutions

The first cost-cutting move that many beverage brands often find themselves considering is cutting ties with their partners. However, moving your operations in-house can require substantial spending that can strain already tight budgets. You may find yourself contending with fluctuating demand and unexpected compliance risks, while the management of POS production (which includes design and print materials), talent recruitment and technology can all require heavy investment.

Without advanced systems and logistics networks, the level of efficiency achieved through outsourcing is challenging to match in-house. In fact, McKinsey research confirms that most companies realize immediate total cost reductions from outsourcing, following by year-on-year additional cost reductions.

The answer: Outsource for improved cost control and efficiency

By outsourcing operations such as warehousing, inventory management, logistics and production of barware, glassware and POS, beverage brands can leverage scale, expertise and well-established networks. Through our partnership you’ll gain access to standard-setting tools like MyHub, giving you the benefit of extensive investment we’ve made specifically to solve core supply chain challenges. And the leverage we gain from aggregating demand across our wide range of clients means you’ll benefit from the lower materials costs we negotiate as a result.

At HH Global we’re highly experienced at consolidating and aggregating shipments for on-time deliveries. We have access to competitive freight rates and focus on specific products to align stock levels with demand and clear excess items. These “targeted depletions” can strategically reduce inventory storage and waste, improve supply chain efficiency and increase retail execution by arriving in a single shipment.

We ensure materials for POS, barware and glassware are produced to the highest standards, reducing unnecessary expenses and errors – while maintaining quality and increasing speed.

Furthermore, HH Global’s technology infrastructure offers end-to-end visibility and control, allowing beverage brands to track shipments, inventory levels and lead times from order placement to final delivery.

Challenge #2: Creating fit-for-purpose teams

Building a specialized in-house team for reliable customer services involves hiring, training and retaining skilled employees—a costly and time-intensive endeavor. Deloitte reports that talent acquisition is a top challenge for businesses today. With high turnover rates and skills gaps, maintaining a competitive in-house team can prove expensive and risky.

The answer: Outsource for flexible expertise when + where you need it

At HH Global we can provide a pre-built team of on-demand experts, with specialized industry knowledge, proven responsible approaches and cost-saving strategies for joined-up and streamlined operations. Working with us can potentially save you millions in overhead costs—while also minimizing your carbon footprint.

Challenge #3: Mitigating risk and ensuring compliance

In the beverage sector, regulatory compliance and quality assurance are paramount. Insourcing can make compliance more complex, especially without a trained, dedicated team. With years of industry experience, we have established supplier partner management and quality assurance protocols, ensuring all materials meet food safety, ethical, environmental and all other regulatory industry standards. This significantly reduces legal and financial risks, providing brands with a safeguard against non-compliance.

The answer: Pick a partner with deep expertise

Our longstanding partnerships with global beverages brands have demonstrated the potential for significant savings and streamlined operations through outsourcing. Many of these brands face the same challenges: reducing costs while improving operational efficiency. By working with us, they’re able to realize substantial financial benefits and enhancements across various areas.

With one such client, our solution involved value engineering and inventory optimization—achieving a 40% reduction in POS costs that amounted to millions in savings. By strategically managing their inventory, we cut inventory levels by 45%—amounting to more than $5m. Further warehouse and logistics efficiencies reduced their costs by an additional 27%, underscoring the power of our streamlined and scalable approach.

These kinds of partnerships also highlight our commitment to innovation and continuous improvement. We hold summits throughout the year that result in new strategies, ensuring we stay ahead of industry trends and deliver value to our clients. This flexibility has allowed our clients to expand their workflows, address seasonal and promotional needs and manage increased demand with ease—all while keeping costs in check, ensuring they remain competitive in a fast-changing market.

Creating a future-ready model

By outsourcing to us, your beverage brand can access solutions designed to evolve with the industry. Our industry-leading programs, technology and expertise address global challenges including increasing production costs, rising raw material prices, energy costs and labor shortages while also providing world-class sustainability solutions and reporting to give your campaigns maximum exposure and reach, while also ensuring compliance with an ever-evolving framework of international rules and regulations.

Working with HH Global can also help to shoulder the operational complexities and financial risks of today’s economy—allowing you to achieve higher levels of cost-efficiency and growth. By taking advantage of our expertise and proven strategies, you can protect your bottom line and ensure you’re prepared for future challenges—ultimately creating a more robust, resilient and potentially more profitable business.