From Excel to AI: How Reyes brought predictive modeling to beer distribution

This is an excerpt of the original article. It was written for the September-October 2019 edition of Supply Chain Management Review. The full article is available to current subscribers.

September-October 2019

It’s that time of year again, when we feature the Top 25 supply chains from Gartner. What I enjoy most about this research is the window it provides into where supply chains are going next: After all, while some lead, the rest of us follow.

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A rich brew of variables including seasonality, special events, weather changes, special promotions and an expanding range of SKUs affect the demand for beer products. Reyes Beer Division is using artificial intelligence (AI) and machine learning to improve demand forecasting in this highly volatile market.

Reyes began the journey in June 2018. It was no stranger to using data to support decision-making. However, building and using advanced predictive models in the beer distribution business represented a formidable challenge.

Today, Reyes is reaping the benefits of more accurate forecasting and creative analytics in multiple areas of its operations. The enterprise is now refining its algorithms and working to embed AI/machine learning in its supply chain.
The lessons Reyes has learned so far provide a taste of what the technology can accomplish.

Change drivers

Founded in 1976, Reyes Holdings, LLC is the holding company for five business units including Reyes Beer Division, the enterprise that is pioneering the company’s adoption of AI/machine learning.

Reyes Beer Division is the largest beer distributor in the United States. The unit delivers more than 155 million cases of beer annually to more than 71,000 retail accounts across the nation. A core mission: Leverage the organization’s scale to improve operations and deliver continuous best-in-class service.

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