Beyond Spreadsheets: Can Off-the-shelf software handle my Distillery’s needs ?

Welcome back to our series on software options for growing distilleries! In our previous post, we discussed the benefits and limitations of using Excel spreadsheets for distillery management. As your distillery expands, it becomes increasingly important to explore more robust solutions that can handle the growing complexities of your operations. In this post, we’re delving into the world of off-the-shelf non-industry specific software, offering a useful middle ground between spreadsheets and purpose-built distillery management systems.

1. * How difficult is it to integrate off-the-shelf software with my existing systems?
2. * Are there hidden costs associated with implementing off-the-shelf software?
3. * Is it worth the cost to use off-the-shelf software for distillery management , Excel’s free (isn’t it !?)
4. * Can off-the-shelf software meet the specific needs of a distillery / Should I go distillery specific system or ‘easier’ off-the-shelf?
5. * Will off-the-shelf software be able to scale as my distillery grows?

These are all valid concerns and common questions we hear. Let’s take a closer look at the advantages and limitations…

First up, a caveat – We’re not suggesting none of the systems out there do all of the positives below and don’t do any of the negatives, it’ll be a mixed bag. We’re yet to see one that does all the positives and doesn’t have any of the negatives so this is a guide to what to watch out for!

Advantages of Off-the-Shelf Software

• Centralised data: Off-the-shelf software consolidates inventory data into a single, accessible platform. This eliminates the need to hunt through multiple spreadsheets and provides a comprehensive view of your stock levels, orders, and dependent on system/functionality also sales and purchases.
• Improved accuracy: Automated data entry and validation features reduce the risk of human error.
• Enhanced efficiency: Off-the-shelf software can streamline inventory management processes, automating tasks such as stock replenishment, order processing, and invoicing.
• Better reporting and analytics: Systems can provide advanced reporting and analytics tools, allowing you to gain deeper insights into your inventory trends, sales performance, and customer behaviour – just make sure that data input is sound at the outset !
• Scalability: Off-the-shelf software is designed to grow with your business, to a certain scale. Accommodating increasing volumes of data and more complex processes, often at a scalable licence cost.

Limitations of Off-the-Shelf Software

• Cost: Depending on the complexity and features of the system, implementation and ongoing maintenance costs can be significant. Often with a low initial offer that ramps up very quickly once you’re “on-board”. See also the customisation point below re: number of off-the-shelf systems you might actually end up with
• Learning Curve: Adopting a new system and user interface requires time and effort to train staff and adapt to new processes.
• Integration Challenges: Integrating off-the-shelf software with your existing software and hardware can be complex and time-consuming.
• Customisation Limitations: Many off-the-shelf systems will be experts in a specific area and will need several systems dealing with inventory, e-commerce, finance, people, CRM and many other areas – leading to multiple, complex interfaces and disparate data, not to mention compounded system costs!
• Limited Industry-Specific Functionality: Off-the-shelf software often lacks specialized features tailored to the distilling industry. This can range from tracking regulatory information and aiding reporting, long-term stock and recipe planning and material resource planning.
• Inability to Handle Whisky’s Unique Journey: Off-the-shelf systems just can’t deal with whisky’s unique journey without a min-boggling set of work-arounds.
• Example: Try telling a non-industry specific system that you’re going to create your liquid (inventory item) using variably performing raw materials in terms of yield, then fill it in to a cask (fixed asset) with it’s own cost and depreciation, then empty it in to another cask asset in, say, 3 years and then finally bottle it 9 months later, using dry goods (from the same system please?!) – oh, and by the way I need to know all the provenance of that journey and there’s only 80% left of the inventory that I produced in the first place, I need to tell HMRC about it all methodically and the remaining 80% needs to have 100% of the cost from the initial production attached to it
• ….And watch as the requisite software support analyst’s eyes slowly glaze over and smoke billows from their ears!
• Lack of Provenance/Traceability: Off-the-shelf systems may not be able to track the full provenance of your raw materials, from the field to the bottle, which can be important for marketing and quality control purposes.
• HMRC Reporting: Generic software isn’t equipped to handle the specific regulatory requirements of the distilling industry.

Choosing the Right System

We’ve seen a range of off-the-shelf options used by distilleries, often many are household names such as Unleashed, Cin-7, SOS Inventory or SAP. Often best in class Xero integrated systems or ERP’s known for their robust systematic, but expensive, approach.

So, is an Off-the-Shelf System Right for You?

Ultimately of course, the decision of whether to adopt an off-the-shelf system depends on your individual circumstances. If your distillery is experiencing growing pains with spreadsheets but isn’t quite ready for a full-fledged, industry-specific solution, an off-the-shelf system could be a viable stepping stone. These systems offer improved data management, accuracy, and efficiency compared to spreadsheets but can be costly when the full suite of systems is considered and often don’t answer those industry specific problems. As is often the case with the “middle-ground” it can sound appealing though leave the business yearning for the proper solutions whilst paying a decent whack for only part-functionality after a difficult implementation/change in business processes anyway.

In the final post of this series we’ll explore the benefits and features of purpose-built distillery management software, a comprehensive solution designed to address the unique challenges of the spirits industry. Through understanding the different software options available, you can make an informed decision that empowers your team and distillery to grow and thrive.