There are few industries that are not affected by SKU proliferation. Within industries ranging from consumer goods to life science, there are a number of supply chain complexities that come with an increase in SKUs. Typically, SKU proliferation results after a company acquisition or a new product launch. Alternatively, SKU proliferation may occur as a result of adding new varieties of current offerings or changes in seasonal demand.
SKU proliferation can cause headaches for warehouse managers who now need to anticipate new order frequencies and volumes. To combat SKU proliferation, should you completely reorganize your warehouse? Should you make minor adjustments and re-evaluate later? Where and when should you begin?
You Always Start From the Start.
The best way to battle SKU proliferation – and the inefficiencies caused by not optimizing your setup – is to start with the right design solution. The right design solution will match your storage capacity with your inventory profile, taking into account the dynamics of the optimal pick process.
By beginning with a Facility and Storage Assessment, you set yourself up for success by engineering a game plan before any action takes place. Also, we take into account other variables that can affect the optimal performance of a warehouse. Typically, we talk to clients about trends they see with smaller shipping packages, changes in service expectations, and other external factors that can reshape a distribution network.
What Else Should You Factor In?
Also, this is a great time to introduce Smart Slotting to our clients. Smart Slotting uses factors such as labor costs, space costs, replenishment costs, and equipment costs to provide you with the most efficient inventory slotting plan. All operational costs are taken into account to define the lowest possible throughput cost per item for your facility. This
We have found that examining all variables at this stage leads to a more efficient warehouse. Ultimately, the right answer comes from taking a step back and taking a look at “the forest, not the trees.” At this point, warehouse managers need to ask themselves: Is now the right time to introduce automation? Do you need to increase dense storage? Are you running out of shelving space?
Ask the Experts.
Storage Solutions experts are here to answer these questions. We have the knowledge and experience to tailor the right solution to suit your needs. Especially if your warehouse does not have an industrial engineer on staff (and not many do), the correct answer may not occur naturally. However, the right answer will likely come from an expert who knows the ins and outs of facility redesign. It comes from making changes based on where demand from your customers is shifting.
More often than not, we hear clients say, “I am running out of storage space.” Our answer is typically, “Are you? How well are you using the space you have?”
The answer is not always rocket science. However, the right solution usually is simple, smart, and strategic. That is what we are here to do: Connect you with that solution. Contact us today to get started!