The packaged foods industry is in the midst of a supply chain evolution. The focus on a small core number of high volume SKUs has been giving way to the demand for smaller quantities of a larger number of products, resulting in more orders, varied packaging containers and just in time ordering requirements by food retailers. This shift has impacted packaged foods manufacturers and distribution centers in a number of critical ways:

• Manufacturers’ growing need to maintain buffers of higher moving SKUs, and provide just in time order fulfillment of smaller quantity orders, to offset reductions in retailer inventory
• Streamlined cross docking at DCs to handle more store ready pallets
• Integrated ordering, tracking and identification of products in the supply chain
• Need for faster picking and higher order fulfillment accuracy
• Efficient mini-load picking capability for case and piece-picking of small orders
• Flexibility in conveying systems to accommodate retailers’ requirements 

Automation Flexibility is Key

Double deep storage at packaged food manufacturer

To manage the diverse mix of product SKUs, packaging variations, small order quantities, case picks, layered pallet loads and unit loads, packaged foods warehouses require an integrated composite of automated systems to handle this throughput efficiently and cost effectively (see Swisslog’s white paper on packaged food). Systems with the flexibility to adjust to market conditions very quickly and accurately are:

Streamlined High-Bay ASRS – Still the core system of highly automated warehouses handling packaged foods, high-bay ASRS will continue to fill the need for high throughput, full and layered pallet storage distribution, particularly at the manufacturer and central DC level. 

Swisslog's white paper on packaged food

Integrated Controls Architecture - The latest warehouse management systems maximize supply chain efficiency by seamlessly connecting key processes from inbound goods arrival, through inventory storage, to fulfilling outbound shipping orders. Such integrated WMS ensures optimized storage by distributing SKUs over multiple aisles, improved delivery execution and maximized labor resources. WMS with total inventory transparency allows the packaged food warehouse to link every process in its supply chain, streamlining the flow of goods.

Case and Tote/Tray Pick Systems - Of any area in packaged foods storage and distribution that has been most affected by automation improvements, it may very well be in the storage and picking of individual cases and small-quantity, mixed-SKU products. Case pick and tote/tray mini-load systems support goods to person pick stations and employ very light, high speed cranes or robotic shuttles that transport individual totes or trays, providing high case pick and piece pick throughput. 

Conclusion

Driven by retailers’ need for more floor selling space to accommodate consumer’s appetite for more products, the packaged foods market is shifting to the handling of an increased number of product SKUs, more just-in-time orders with smaller quantities, lesser store inventories and more deliveries of high-throughput SKUs in floor-ready formats. To overcome these challenges, the case for automated warehousing is very convincing.