Scalable Beverage Distribution: How Southern Glazer’s Modernized Fulfillment with Dematic
Overview
- Southern Glazer’s Wine & Spirits doubled throughput and scaled operations without disruption, increasing capacity by 25% of cases per night through an integrated, end‑to‑end automation and software solution.
- Order accuracy, visibility, and delivery efficiency significantly improved, while labor intensity was reduced by intelligently orchestrating picking, conveying, sorting, and route sequencing.
- Established a future‑ready distribution network from day one, allowing Southern Glazer’s to adapt to rising demand and regulatory complexity with an expandable, high‑density fulfillment model designed for growth.
The challenge: legacy fulfillment meets rising demand
Southern Glazer’s Wine & Spirits, one of the world’s largest beverage alcohol distributors, operates one of the most complex and highly regulated distribution networks in North America. With operations in 47 U.S. states, Canada, and the Caribbean, Southern Glazer’s is the largest wine and spirits distributor on the continent. Managing thousands of SKUs, navigating strict state-by-state regulatory requirements, and executing route-based delivery models requires exceptional operational precision.
In Louisiana, Southern Glazer’s was operating across two legacy distribution centers that were struggling to keep pace with growth. Key challenges included:
- Case picking limiting productivity
- Bottlenecks during peak demand periods
- Limited storage capacity and reliance on overflow facilities
- Minimal real-time visibility into inventory and operations
- Limited scalability for future growth
To address these challenges, Southern Glazer’s partnered with Dematic to consolidate operations into a new greenfield distribution center to improve performance today and provide long-term scalability for tomorrow.
The solution: automation that scales and adapts
Dematic worked with Southern Glazer’s to implement a scalable, high-performance fulfillment solution featuring high-density automation managed by intelligent software.
Picking modules
Picking modules are high-density, multi-level zones for fast, accurate case picking. They keep fast-moving inventory close to associates to reduce travel time and improve efficiency.
The operation has multiple zones, including two four-level systems and a third planned for expansion. About 95% of products are picked within these zones, with automation handling over 90% of case picking volume during peak shifts.
Case picking happens in the zones using printed labels, while piece picking happens beneath the merge platform using voice-directed technology.
Conveyor and sortation
A conveyor system moves products through the facility in a continuous flow between picking, sorting, and shipping.
Conveyor connects all major areas, directing cases to a high-speed sorter that assigns outbound lanes while a slug merge system sequences product in delivery order for efficient loading.
Shipping and route optimization
Shipping optimization organizes orders by delivery route and loads cases in reverse stop order. This improves unloading efficiency, reduces dock handling time, and reduces delivery frequency from five days per week to four.
Dematic Software
Dematic Software orchestrates the operation in real time, connecting inventory, labor, and automation. The WMS manages inventory and order accuracy, the WES balances workflows, and the WCS controls system execution. Together, they provide full visibility and continuous optimization.
“The real-time visibility from Dematic has been a game-changer, giving us predictable system rates that allow us to confidently upgrade our infrastructure and accelerate business growth.”
Karli SageVP, Supply Chain Management Technology & Engineering, Southern Glazer’s Wine and Spirits
The results: operational efficiency at scale
The greenfield facility has transformed Southern Glazer’s Louisiana operations into a high-efficiency, scalable distribution model. Benefits include:
- Throughput doubled in cases sorted per hour
- Picking volume increased by 25%
- Over 90% of case picking handled through automation during peak shifts
- Order accuracy improved through automated scanning and validation
- Overflow storage and inter-building transfers eliminated
- A safer, more ergonomic temperature-controlled work environment provided for associates
Beyond immediate gains, the facility is designed for long-term expansion, with built-in capacity to add shipping lines and expand pick modules for future growth.
“With this new automation, we’ve actually been able to double our throughput. That’s in terms of cases sorted per hour. And with this increase in capacity, we’re able to load out and deliver four days a week rather than five previously.”
Juliana PurcelloVP, Operations, Southern Glazer’s Wine and Spirits
Ready to transform your fulfillment operations?
From high-density picking to intelligent software orchestration, Dematic provides scalable automation solutions that grow with your business.
Whether you're consolidating legacy facilities or planning for future demand, we are ready to partner with you for a more efficient, connected, and resilient fulfillment network.
About Southern Glazer’s Wine & Spirits
Southern Glazer’s Wine & Spirits is the world’s preeminent distributor of beverage alcohol, building brands for moments that matter. The multi-generational, family-owned company has operations in 47 U.S. markets and Canada, as well as brokerage operations through its Southern Glazer’s Travel Retail Sales & Export Division in the Caribbean, Central America, and South America.