Kegworks: A Case Study

1032 Words 5 Pages
I had the opportunity to interview David Rivers, founder and president of Kegworks located in Tonawanda, New York. The parent company of Kegworks is Dotcomholdingsofbuffalo.com. David started this company 19 years ago as a website sells draft beer dispensing equipment, and bar supplies. He worked in the beverage industry all his life, but saw the need in the market because of the difficulties that bars faced to find bar products because there were no stores for them to go buy it from. The second website is called Linelogic that sells stanchions for anything that requires a queuing system. I asked him what his day to day tasks are. He responded that he doesn’t have any day to day tasks, but his CEO under him handles the leadership team. He …show more content…
The risks that David talked about that have happened overseas is the quality of the items being shipped over, but this wasn’t common. Their manufacturers have backed up the product that wasn’t to the quality standard that Kegworks wanted, so they refunded the money to them or remaking and shipping at their cost. In the end it’s a loss to Kegworks because of the added time that they have to wait for the new product to come. The time having to wait for the product to come over causes Kegworks to keep bigger quantities on hand for when situations like this occur. They need to have a large warehouse that can keep inventory on hand so they can handle …show more content…
At the manufacturer there is the packaging of the goods, and how you specifically want it done. Once they opened up a container that had nothing on pallets, just 400 boxes in the container. This container came from India and the manufacture didn’t want to pay for the pallets because they have to be fumigated and its costly Kegworks actually had products on one of Hanjen’s ships that got delayed off the West Coast of South America because of the recent issues with them. This caused them to lose about 2 months on this LCL load, because they leave the shipping to the manufacturer which they feel is faster and easier to them. If they were a larger company they would handle all of that, but the manufacturer picks the container lines, stuff it, take care of the paperwork, and get it to a NY port. With more stuff getting inspected they are faced with delays because of customs inspections, and they have to pay for all of those fees. Trucking companies have actually shipped their product one time to a furniture store in Massachusetts by

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