Charlotte, NC-based I.H. Caffey Distributing Co. distributes about 7 million cases of beer a year through six divisions that handle Miller, Coors and a host of other beer brands. Because of the complexities of its large operation, the company found its day-to-day business processes of account planning, brand management and internal communication hampered. In addition, Caffey found it difficult to establish the desired levels of team accountability while at the same time maintaining team independence.

To address these challenges, Caffey implemented a number of modules from Raleigh, NC-based Intervolve’s Distribution Suite, including Pocket PC, Palm and Lifebooks/Tablets. The software and mobile computing hardware integrated seamlessly with Caffey’s existing route accounting system.

Intervolve provides on-demand supply chain software that helps companies automate the collection, analysis and dissemination of sales and distribution information to reduce operating costs and gain a competitive advantage. The company’s products are designed specifically to meet the needs of beverage distributors. “One of our three co-founders came from a beer distributorship, so we knew what their needs were,” explains Chris Newton, chairman and CEO.

Intervolve founders looked at what distributors were using in the market and realized that they needed three things—a route accounting system, a market intelligence tool and advanced mobile computing. Intervolve refers to these three things as the “Power Triangle.” Its software products are designed to fill the information needs of that triangle, turning large quantities of raw data into actionable information that is available across the whole company: the warehouse, finance, sales and route operations.

“In the past, most distributors used mobile computing simply to place orders,” says Newton, explaining that Intervolve realized that if distributors wanted to be able to predict the future and create opportunities, it would be important to gather causal information—what causes a sale to happen—which provides visibility into the market. “After you do the ‘cause and effect analysis,’ the system will tell the sales rep what action to take at each retail account,” he adds.

Intervolve offers two software suites—DistributionSuite and Route Accounting System (RAS), which combine to add transparency to any distribution business. “DistributionSuite allows distributors to collect market information from a hand-held and report to beer suppliers without having to collect the information multiple times,” explains Newton. “In fact, Coors Brewing Company is recommending Intervolve software to its wholesaler network, because it automates the survey component within its retail account standards initiative.”

RAS, meanwhile, integrates sales order management, inventory management, financial accounting, reconciliations and route maintenance into a real-time, enterprise-wide application. “It was designed to make route-running easier and faster, and to provide tighter control of inventory,” Newton adds. “The system offers a closed-loop process for distributors. It eliminates linear processes, allowing users to perform a number of functions simultaneously. For example, you can close your day and move inventory at the same time.”

As a result of adopting the DistributionSuite components, for example, I.H. Caffey now can utilize mobile sales analysis to track in-store sales information from space allotment and adjustment to any level of self-service reporting and also establish, track and document account level objectives, such as displays, distribution, space and merchandising. Overall, Caffey estimates that DistributionSuite saves about 31 hours of work a week and the company also has seen a dramatic increase in revenue.

I.H. Caffey is not the only distributor that has seen positive results; P.A. Short Distributing Company (Hollins, VA) is an A-B distributor that was one of the first wholesalers to use DistributionSuite and it provided input on how RAS should function.

With these two programs in place, employees at P.A. Short now can run sales reports on any PC in the building or off-site. They also can run sales history reports to look at brand and packaging sales. If they happen to see any “red ink” on certain brands or packages, they can determine if it is related to A-B pricing vs. the competition, retailer pricing or other market conditions.

“If we are under-spaced in the cooler or on the floor displays, we can give the retailer the business analysis to show what is going on with the brands and packages,” reports Paul DiMarco, off-premise sales manager. “For example, if the retailer is spending money on competitors’ products that are not moving in the cooler or on display, we can provide this information.”

The company’s sales managers now have mobile laptops with access to high-speed Internet and the drivers have tablet PCs. End-of-day processing now only takes 20 minutes, rather than one-hour plus. “Intervolve has clearly developed the next generation of solutions for beverage distributors,” concludes Phillip A. Short, president of the distributorship.