Inside the walls of a warehouse. The answer to the food and beverage supply chain challenges

Acquisitions, safety regulations, SKU proliferations and ever changing consumer demands are among a few issues food and beverage industries are now faced with. As these industries continue to change, their supply chains are in need of innovative solutions to keep their companies competitive. 

In a recent issue of Food Logistics magazine, Elliot Maras reports on the issues faced by many companies in the food and beverage space. He references the 2015 Material Handling Institute (MHI) Annual Industry Report, “Supply chain innovation – Making the impossible possible,” that outlines the challenges the food and beverage industries face, as well as supply chain technologies that are available to combat these challenges. 

The top three challenges for supply chains

• customer pricing pressure
• demands for faster response times
• rising customer service expectations

Technologies expected to have an impact on supply chains

• optimization tools
• sensors and automation
• predictive analytics

The solution

Implementing new order fulfillment strategies is a solution many companies are embracing to combat supply chain challenges. As reported, companies are now holding inventory in high velocity facilities closer to the customer, however; for these solutions to work advanced inventory optimization tools, integrated execution systems and automation are often required. All of these solutions will help, but cannot work on their own.

To begin, optimizing order fulfillment starts with the design of the warehouse and picking process. Integrating an automated storage and retrieval system (AS/RS) and warehouse execution system (WES) software with warehouse material handling systems drastically simplifies the order picking process to improve fulfillment. Using robotics, an AS/RS can systematically help pick products, layers and cases from the inventory to palletize and ship to the customer.

An AS/RS brings the products close to the shelves with high velocity, while the storage and retrieval machine (S/RM) assures that the picker always has product available in the right position. There is no redundant or repetitive manual material handling, and the probability of human error is minimized.

The result

As a result, manufacturers and distributors not only achieve greater productivity and faster picking, they experience increased order accuracy and reduced product damage. This translates into cost savings that the company can pass onto their customers. Also, it is a common practice that companies utilize accuracy, together with on-time delivery, as customer service key performance indicators (KPIs).

Looking forward, the methodologies behind order picking will not change, but the tools enabling it will continue to become more advanced and in tune with distributors and manufacturers’ specific needs. Even then, it is important to remember that the order you pick is also the order that you pack and ship – using an AS/RS to improve the efficiency of the picking process will lead to timely, accurate order fulfillment that keeps customers happy and companies competitive.