The rise in alternative snack options has been a source of consistent growth for the food and beverage industry , outpacing other categories in the market with a compound annual growth rate ( CAGR ) of 4.7 percent according to a report by market research firm Packaged Facts . While this is all great news for company business and sales numbers , the surge in products , and with it new SKUs , is putting a strain on warehouses and distribution centers to optimally store and manage their inventory .
Fortunately , with consumers open to paying premium prices for healthier snack choices , companies have more revenue available to focus on capital investments like automation technologies that can not only alleviate these warehouse management challenges , but also improve operations . One solution that companies should look towards is a Warehouse Execution System ( WES ).
Manage Everything in a Single Application
Typically , most manufacturers and distributors use a warehouse management system ( WMS ) and warehouse control system ( WCS ) as separate but interdependent applications to oversee product movement and warehouse operations . However , this is actually less efficient as it increases the complexity of transaction processing in addition to requiring complicated integrations .
It is more efficient to use a WES since it streamlines all warehouse activities into a single application . Notably , a WES offers the inventory management , storage optimization and traceability features of a WMS , as well as the automation control components of a WCS , which provide a real-time view of material handling equipment , labor status and other key performance indicators ( KPIs ) critical for efficient warehouse operations . In short , it simplifies all communication and controls within the warehouse to support the optimal movement of product .
Improve Food Traceability
While manufacturers are looking to provide healthier snack options to consumers , it ’ s equally important for them to make sure the products they put on the market are safe for consumption . What good is eating healthy if there could be a potential food safety risk ?
With real-time management of inventory and order information , a WES can help support manufacturers in their food safety initiatives , especially when faced with a recall . Namely , a WES keeps accurate data on the movement of products throughout the entire warehouse , including lot numbers and what SKUs were tied to which orders . Using this data , companies can definitively pinpoint which orders contained affected products and where they were shipped , to pull those products off store shelves and out of consumer ’ s pantries , thereby ensuring a safer food supply chain .
Store More in Less Space
When a WES is paired with an automated storage & retrieval system ( AS / RS ), snack food manufacturers and distributors can realize superior control over materials handling operations , including the efficient movement , storage , picking and creation of customer orders . But an AS / RS has the added benefit of improving space utilization within the warehouse – perfect for companies that are running out of warehousing space given the growing number of SKUs .
By retrofitting an existing warehouse with a high-density , multiple-deep AS / RS , manufacturers and distributors can optimize space in a particular location . The warehouse can “ do more with less ” – store more product and more SKUs in a smaller amount of space , thereby eliminating the need for costly new construction or expansions . In fact , organizations that implement an AS / RS in an existing facility typically expand their storage capacity by 30 to 50 percent . With these space savings , companies are better poised to accommodate any new SKUs that come with the next healthy snack trend .
Consumer demand for more nutritional snack options shows no signs of slowing down . According to the Packaged Facts report mentioned above , the healthy snack segment of the food and beverage industry is expected to see a CAGR of 5.7 % between 2016 and 2020 . Snack food companies that implement warehouse automation technologies like a WES and AS / RS will be ready to meet this growing consumer demand , both in their product offerings to the market and in their warehouse operations .
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