The Satellite Review Magazine 2017 Satellite Review Magazine_pages hi res | Page 26

REPLENISHMENT
CHALLENGES
TOP 3 WAREHOUSE
REPLENISHMENT CHALLENGES
& Solutions
By John Hinchey
VP of Sales, Westfalia Technologies, Inc.
T
oday’s consumers want what they want, when they want it. So, as the demand for goods increases and supply chains
become more consumer driven, it is imperative that warehouses replenish their products in picking and reserve ar-
eas in the most efficient and cost effective manner. However, there are several efficiency challenges that are plaguing
warehouses today. Fortunately, there are also solutions and best practices to combat each of these challenges.
Challenge #1: Limited Real Estate
The biggest challenge to warehouse efficiency and costs with demand-based replenishment is warehouse space. If you have
10,000 different products, it may seem like the best way to display those products would be on the floor, on a pallet. How-
ever, to do so you might have to build a warehouse that is five football fields long, which is certainly not very cost effec-
tive. Not to mention, efficiency would decrease dramatically because of the time required to travel across the floor to pick
orders.
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