Storage of Finished Product at the Tequila Industry

Over the 10 years that I've been working at Casa Sauza as a storage specialist, I've learned from the handling of the product at the warehouses and its logistics, until it makes it to its final destination, our clients. Due to the growth of the tequila industry, we at Casa Sauza have to innovate in the handling, storage and logistics of our products.

At the storage of finished products, the products are divided into two markets: exportation market (Usa, ROW and Duty Free) and the local market. The product for exportation is handled with a 3PL storage while the local is handled directly at Beam Suntory Mexico (BSM). In this article, I will talk about:

Storage of Product for the Local Market.

Every Friday a production plan from the packaging area is received. It shows all the packaging programmed for the following week (Monday to Sunday). This planning includes: product code, kind of product, quantity, date, shift, destination, etc. All the key information that is required for the different areas and people who are directly or indirectly involved in the packaging process.

Based on the packaging production plan, we make a Just In Time (JIT) planning of the products that are destined for local markets. This JIT planning is done for several reasons:

• Saving storage space
• Reducing storage costs
• Reducing product damage due to storage handling
• Reduction of inventory levels
• Compliance with delivering the product to the customer in a timely manner.

To carry out a JIT planning, the finished product warehouse requires:

• Constant communication with the planning of materials and packaging areas
• Close communication with our client (BSM)
• A list of the client's priorities (BSM) in terms of product, date and delivery address
• Reliable and safe transportation
• Qualified staff for the handling of product at the warehouse
• Knowledge of the handling and the loading conditions of Casa Sauza products

Once all these factors are taken into account, a weekly shipment plan in made. In this plan, we must mention the following:

• Shipment date
• Schedule of the transportation required for loading
• Amount of shipments per day
• Amount of product that each shipment brings

Once the shipment plan is done, it is sent to the Costumer Service area responsible for the domestic market (BSM) and the latter in turn, sends the program to the client (BSM) so he coordinates the reception of the product according to the shipment dates.

In addition, a copy of the program is sent to the transportation line, so that it confirms the presence of the units at the established time and date.

Changes done due to client's suggestions

If the client (BSM) had a new need or changed his priority, it communicates it to the Costumer Service area so they review it and, if necessary, the program gets adjusted according to the new needs.

This is how we handle the storage for the local market. If you would like to know more about our tequila production processes, you can subscribe to our blog or even come to our production plant and see it all for yourself. We'd love to show you around!