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Home » The Critical Challenges of Warehouse Order Fulfillment

The Critical Challenges of Warehouse Order Fulfillment

August 1, 2013
SupplyChainBrain

The biggest challenge in order fulfillment in the warehouse today is managing the growing number of SKUs, says Corcoran. Previously, he says, a beverage supplier might have been managing 300 individual SKUs. Over the past three years, that number has risen to around 500, and could balloon to 1,000 within the next five years. At the same time, volume will only increase between 6 and 7 percent, meaning that distributors must manage a far greater variety of product within existing facilities.

Manual systems can't get the job done, he says. Older systems require travel over greater distances within the warehouse. Automation, especially robots, can cut down on work and handle a greater variety of SKUs and packaging types. A robot, for example, can palletize many different items in a more efficient manner. And distributors can achieve full visibility to incoming orders.

"You can change dynamically on a daily basis," says Corcoran. "You can handle fast and slow movers. A robot can do these things in minutes."

Many companies view robotics as the "Holy Grail" of modern-day material handling. At the same time, Corcoran says, people will still be needed - especially automation engineers who can ensure that the robots remain up and working.

Some warehouses are moving toward a "lights-out" model, in which humans are entirely absent from the picking process. The automotive sector has been especially open to that brand of technology, says Corcoran, but retail, especially food and beverage, has been much slower to adopt it. That sector needs the flexibility of a system that isn't entirely automated, and still involves people who can quickly adjust to shifts in customer demand.

Nevertheless, says Corcoran, "automation is beginning to surge toward the warehouse side of the business. It offers the greatest amount of [return on investment]."

To view the video in its entirety, click here


Keywords: supply chain, supply chain management, inventory management, inventory control, warehouse management, WMS, retail supply chain, e-commerce supply chain, logistics management, supply chain planning

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LTL/Truckload Services Transportation & Distribution Inventory Planning/ Optimization Technology Supply Chain Planning & Optimization Order Fulfillment Warehouse Management Systems Consumer Packaged Goods Food & Beverage Retail
KEYWORDS Aaron Corcoran consumer packaged goods e-commerce supply chain EDI Communication (XML/EDI) Food and Beverage inventory control Inventory Management Inventory Planning/ Optimization KUKA Systems Corp. North America logistics management LTL/Truckload Services order fulfillment Retail retail supply chain RFID & Barcode SC Planning & Optimization supply chain Supply Chain Management supply chain management: order fulfillment & p.o. management Supply Chain Planning Technology Transportation & Distribution Warehouse Management Warehouse Management Systems WMS
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