Beer

HenHouse Brewing Co. Masters Collaboration & Cost-Per-Barrel Tracking with Crafted ERP

The Customer

Following an extensive search for ERP software, HenHouse Brewing Co. engaged Doozy Solutions in 2018 to implement Crafted ERP to streamline daily operations and improve production visibility. Since then, the brewery has refined inventory management across multiple locations, improved cross-functional communication and collaboration, and gained a profound understanding of cost and profitability ­ — all while more than doubling production.

About Henhouse Brewing Co.

California-based HenHouse Brewing Co. is part of the second generation of Sonoma County breweries. Started as a nano brewery in 2013, HenHouse rapidly grew to produce 8,000+ barrels a year and opened three locations (Santa Rosa, Fairfax, and Petaluma) where “the beers are fresh, the food is amazing, and the vibe is immaculate.” The dedication to ensuring product quality and freshness has been a hallmark of the brewery. HenHouse both self-distributes and uses wholesalers to deliver refrigerated beer to more than 700 retail stores, bars, and restaurants in the greater Bay Area. The brewery is now a top attraction for visitors across the region and country.

The Challenges

As HenHouse Brewing expanded to multiple locations, spreadsheets didn’t allow for the visibility into real-time, detailed information necessary to run its operations smoothly. Decisions were made from inaccurate data.

In addition, the use of spreadsheets created an atmosphere of blame. With no single source of truth to work from, it was difficult to know who or what was correct at any given time. Subjectivity and hearsay were paramount.

Without an ERP system, the brewery had little to no insight into cost drivers. There was no clarity around what product was needed and what the cost implications would be. Furthermore, it couldn’t design a revenue flow to support its distribution process, resulting in significant data gaps across sales, customer service, and inventory movement.

It was clear that an ERP system was needed to drive success and deepen collaboration. It was also clear that Crafted ERP was the premier offering on the market — and the only choice that made sense for HenHouse in its current state and where it wanted the business to go in the future.

It’s weird to talk about an ERP system as a way to help the team get along better, But it’s super true. everybody is much happier not having the infinite spreadsheet sprawl that made us stressed out and mad at each other.

Collin McDonnell standing in the Henhouse taproom

Collin McDonnell | CEO & Co-founder

HenHouse Brewing Co.

The Solutions

Cross-functional Collaboration

Sales, inventory, production, taproom, and wholesale used to run as separate conversations. Crafted consolidated sales management and forecasting into a single system, closing the gaps between them.

“It’s stressful to run a complicated manufacturing business. There’s a lot of opportunity for team members to think someone isn’t doing their job or something isn’t being done the way it should be. That is eliminated with Crafted as a central repository of truth,” says Collin McDonnell, CEO & co-founder of HenHouse Brewing.

Inventory & Warehouse Management

Multiple locations meant limited space at any single site. “If we had to store everything exactly where it needed to be for use, we just wouldn’t have enough space,” Collin explains. Crafted keeps inventory moving between locations and production scheduling in sync, so growth doesn’t outpace the warehouse.

HenHouse Brewing needed lot traceability to keep only the freshest raw materials in use, lot expiration control, and the reporting to support self-distribution. Crafted gave the brewery a new level of control over — and visibility into — its inventory and supply chain.

Keeping the CPA Happy 😉

Regulatory and tax compliance comes standard with Crafted ERP, including three-part confirmation on transactions and excise tax compliance.

“We have our annual budget by department and location fully integrated in Crafted so we can get monthly reporting on how we’re doing,” says Collin. “This is a significant tool as it shows us where we’re doing well and where we need improvement.”

Cost-driver Knowledge = Profit

Crafted provides access to very specific details around the cost of making beer. “Actually understanding what drives cost in beer empowers us to make decisions and investments around that info, and to create more profitable beer in the long term,” Collin says. Now that’s worth cluckin’ about.

Breweries are all unique snowflakes. No two are alike. Being able to build a customized platform with Crafted that is directly relevant to the way our brewery works has been hugely beneficial to us.

Collin McDonnell standing in the Henhouse taproom

Collin McDonnell | CEO & Co-Founder

Henhouse Brewing Co.

Working With Doozy Solutions

As a direct result of implementing Crafted, HenHouse Brewing has continued to expedite its growth, tripling production in just six months — without adding any administrative or accounting headcount.

Following the successful implementation, Doozy Solutions has remained an ongoing advisor and support partner. Looking ahead, HenHouse is confident it has selected the right ERP software and is pursuing additional feature enhancements to sustain its brand’s growth and maintain competitive advantage.