Home improvement shows have put a spotlight on the benefits of customized closet organizing systems. Yet, when it comes to warehouse operations, it’s going to take more than a visit from “The Property Brothers” to accommodate the expansive needs of a beverage manufacturers and distributors.
From an operations perspective, a warehouse is more than just bricks and mortar or metal siding; it’s a day-to-day activity that handles zillions of beverage cases. But what does it cost to do that?
Chicago-based Mintel’s Global New Products Database shows that between January 2015 and January 2016, 5,226 new beverages were launched in North America.
As summer draws closer, many consumers daydream of sitting by the pool with a drink in hand, and that's exactly what those in the beverage industry are daydreaming of too.
“SKU proliferation is the largest change the industry has seen in the last decade,” says Aaron Corcoran, account executive for Westfalia Technologies Inc., York, Pa.
Although SKU proliferation is nothing new to the beverage industry, the phenomenon still is causing many warehouses to explore different ways to accommodate these growing product lines.
With the onset of so many emerging categories in the industry — kombucha, coconut water, relaxation drinks — coupled with line extensions, the number of SKUs warehouses need to accommodate continues to grow.