Happy Dad Hard Drinks

Prioritizing Quality, Scale and Agility in Procurement

My experience in procurement has shaped my approach around three core principles. The first is that quality comes first. The ingredients and materials we source define our product, so quality is something we will never compromise on for cost.

The second is that scale creates value. Ordering in bulk allows us to receive better pricing and allows our suppliers to optimize their equipment centers with longer runs of single or similar formats.

The third is being agile. Having the ability to quickly pivot when there are material shortages or manufacturing issues for ingredients or packaging is essential. This can make the difference between hitting the set production date at our comanufacturers or missing the production, being charged down line time, and not having the needed finished goods in the market. Never assume everything is going to go 100 percent to plan; always follow up.

Balancing Quality, Cost and Supply Consistency

For us, quality always comes first. Using the highest-quality ingredients is non-negotiable, because that's what our customers taste in every can. Once quality is locked in, we look for ways to optimize cost. We work closely with our finance team to forecast upcoming production, which lets us consolidate shipments into full truckloads rather than a (LTL) truckload freight. This approach lowers our landed costs and makes sure we have what we need before production. Beverage demand is highly seasonal, and changes in consumer preferences or promotional activity create challenges when balancing inventory levels against production needs. That is why we always have a plan b, so in the case of a demand shift we are ready to pivot without compromising quality.

Managing Freight Costs and Tariff Pressures

Two challenges really stand out for us right now are rising freight costs and tariffs. On the freight side, diesel prices keep climbing, and there are fewer drivers available, so shipping costs more and capacity is tighter.

“For us, quality always comes first. Using the highest-quality ingredients is non-negotiable, because that’s what our customers taste in every can.”

For a beverage company that matters a lot, because freight cuts into margins quickly. We manage it by shipping full truckloads instead of partial loads and by building steady relationships with our carriers. Choosing the right co-packing facilities across the U.S. and Canada also helps, because we can supply regional markets and avoid shipping products across the country.

Tariffs are the other big one. They've raised the cost of key materials like aluminum and cardboard, often with only a few months' notice. We stay in close contact with our suppliers so we can see those changes coming and plan around them.

Aligning Procurement with Business Operations

We hold weekly production meetings covering our U.S. and Canadian operations, where procurement, production and our finance teams review demand forecasts, current inventory and upcoming production runs. These meetings let us adjust material orders with lead times ahead of demand, and make sure products are in stock when our sales and distribution partners need them.

Rather than making purchasing decisions alone, we base them on a shared view of what the business needs, which helps us avoid excess inventory and keep costs under control. This keeps procurement decisions tied directly to what the business needs, so we have the materials and finished goods to meet distribution orders and customer needs out in the market.

Building Supplier Partnerships for Long-Term Value

I'd tell procurement leaders to treat suppliers and vendors as partners. The best results will come from sharing forecasts, collaborating on demand planning and building relationships.

I believe the importance of personal relationships in procurement is often underestimated. While emails, phone calls, and virtual meetings are efficient, nothing replaces spending time with suppliers and production partners in person. Visiting facilities, walking production lines, sharing a meal, and getting to know the people behind the business builds a level of trust and understanding that goes beyond a transactional relationship.

Overall, procurement is not short-term cost savings but rather is a long-term strategy for ingredients and materials that can be planned out more efficiently.