Case Study

Crafting an Industry-Specific ERP for the Modern Distillery

In Partnership with Lofted Spirits & Sage X3

The Challenge

Lofted Spirits, parent company of Bardstown Bourbon Company and Green River Distilling, has been in a constant state of growth and expansion since its inception in 2016. The industry leader for custom contract distilling, Lofted Spirits’ rapid growth and the acquisition of Green River in 2022, left the organization with six separate systems across distilleries, warehouses, logistics and compliance. These siloed tools resulted in duplicate entries, reporting errors, and challenges in tracking barrel inventory and transactions.

As production ramped up and new acquisitions came online, their disconnected systems could not scale to meet growing operational and regulatory demands. Tracking barrel inventory, managing TTB compliance, and producing accurate reports all required time-consuming manual work across spreadsheets and siloed databases.

Like many distilleries facing these same challenges, Lofted Spirits needed a way to unify operations, increase accuracy, and eliminate manual bottlenecks. That is when they turned to our team at Practical
Software Solutions.

The Solution

Our team at Practical partnered with Lofted Spirits to build a distillery-specific ERP environment powered by Sage X3, designed to replace fragmented systems with one integrated platform for production, inventory, costing, compliance, and financials. Our team worked closely with Lofted Spirits to understand the nuances of their distilling operations, from grain receiving through bottling, and configure Sage X3 to deliver real-time visibility, automated compliance, and a single source of truth across departments.

Key system enhancements included:
Consolidation of multiple ERPs and Excel-based processes into one fully integrated solution, improving data consistency and eliminating duplicate entry.

  • Automation from grain receiving through distillation, ensuring live production entry and live inventory management for immediate accuracy across production, costing, and warehouse operations.
  • Lot traceability and audit readiness, enabling each material and finished product to be tracked from receipt through shipment for full compliance and rapid audit response.
  • Embedded TTB Tables 4 and 7 directly in the system for gauge record calculations, automatically applying the correct proof and wine gallon conversions to remove user error. Gauge records are now stored digitally within the ERP for a complete audit trail.
  • Real-time reporting and analytics through Sage Enterprise Intelligence (SEI), transforming multi-day month-end reporting into a fully automated process that delivers live dashboards and performance metrics anytime.

We also worked with Lofted Spirits to digitize and automate their key government reporting workflows, including:

  • Automated Transfer in Bond (TIB) reports, replacing manual shipment-level spreadsheets.
  • TTB Storage, Production, and Processing reports, generated directly from system transactions for complete traceability and accuracy.
  • Federal Excise Tax (FET) reports, automatically calculated and formatted for submission, reducing administrative workload and risk of human error.

The Outcome

The result is a single, scalable ERP environment that streamlines every aspect of Lofted Spirits’ operations, from production through compliance reporting.

With one source of truth, Lofted Spirits has achieved:

  • Real-time visibility across all facilities
  • Accurate, automated government reporting
  • End-to-end lot traceability and compliance readiness
  • Faster, data-driven decision making
  • A future-ready foundation for continued growth and acquisition

This purpose-built ERP not only meets the needs of Lofted Spirits, it creates a solutions for the distilling industry as a whole, combining the strength of Sage X3 with our team’s industry-specific customizations.

Aaron Butler, Senior Project Manager at Lofted Spirits, using the software at Bardstown Bourbon Company

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