Brand Growth Management

Square Footage vs. Cubic Footage in Distribution

The explosion of the craft beverage industry is creating new sales opportunities while greatly challenging warehouse operations. Beverage retailers and consumers are demanding access to a wide variety of brands in all markets including wine, spirits, beer and non-alcoholic beverages.

Managing Brand Growth in Warehouses

Beverage Wholesalers willing to expand brands are able to gain more clients by offering a wider selection. The ability to deliver more items per stop reduces transportation and delivery costs and typically specialty brands provide better gross margin. By 2019, there will be more beer, wine and spirits consumers than any other time in history.

The challenge for many Wholesalers today is the common struggle between sales goals, warehousing costs and customer service levels. Most warehousing facilities are not equipped for the management of rapid brand growth. These facilities are already at maximum floor stack capacity and slower moving brands take up more cubic capacity per item due to either layer or single pallet inventory levels.

Today requires a fresh look at how to design a new facility or the best methods for improving existing storage and labor usage.

beverage-growth-chart

Today requires a fresh look at how to design a new facility or the best methods for improving existing storage and labor usage.

New facilities should be designed with flexible temperature control and taller clear heights for the potential of four high storage. More docks should be considered as Drive-thru areas and side loaders are rapidly being replaced by pick to stop end loaders.

A dedicated pick line should be considered to reduce travel for order selection and reduce honey combing of deep lane picking in storage areas. Pick line design best practices include one way traffic with the ability to stack each order effectively and top off each order with slower movers toward the end of the pick.

Existing facilities can greatly benefit from storage system enhancements, the key to beverage warehouse optimization is to better manage the slower moving brands and to streamline the pick line