Consumer Goods

Operations are typically high-volume with millions of cases processed annually. Products are standardized in dimensions and packaging, making them well-suited for automation. Case-picking dominates, with full cases or inner packs shipped to stores. Pallet building for store delivery requires careful attention to weight distribution, product compatibility, and store-specific requirements.

Velocity is relatively predictable compared to fashion or general merchandise, with established seasonal patterns and promotional cycles. However, new product introductions, promotional events, and changing consumer preferences create variability. Inventory turns are high—typically 8-15 times annually for fast movers. Shelf life management is critical for products with expiration dates, requiring FEFO (First-Expired-First-Out) picking strategies.

Store-specific requirements add complexity to pallet building and order fulfillment. Each retail location may have unique receiving constraints, delivery windows, and product assortment requirements. Building store-compliant pallets that meet weight limits, height restrictions, and product compatibility rules while maximizing cube utilization requires sophisticated software and careful execution.

Promotional volume spikes create capacity challenges. Manufacturer promotions, holiday periods, and seasonal events can double or triple normal volumes for specific products. Facilities must handle these surges without compromising service levels for base business. Temporary storage for promotional inventory and flexible labor models are often necessary.

Product proliferation continues as brands introduce more variations, flavors, and package sizes to capture market share. This increases SKU counts and reduces individual SKU velocity, making inventory management more complex. Slotting optimization becomes more critical as product mix evolves. Slow-moving items tie up valuable pick locations if not managed properly.

Storage Solutions: Pallet racking with narrow aisles maximizes storage density for case-level inventory. Flow racking or push-back systems provide high-density storage for fast movers with automatic FEFO. Automated storage and retrieval systems (AS/RS) handle high-volume case picking. Reserve storage holds promotional inventory and slow movers.

Transport Systems: Conveyor systems with accumulation handle high case volumes between receiving, storage, picking, and shipping. Automated guided vehicles (AGVs) transport pallets from storage to picking or shipping. Layer picking systems build mixed pallets automatically. Stretch wrappers and labeling systems prepare pallets for shipment.

Picking Technologies: Case-picking with pick-to-voice or pick-to-light achieves high productivity. Automated layer picking builds store pallets from full layers. Robotic palletizing handles high-volume SKUs. Mixed-case palletizing systems build store-compliant loads automatically. For e-commerce, piece-picking zones handle individual item orders.

Software Systems: WMS with advanced slotting, wave planning, and pallet-building algorithms. Labor management systems optimize workforce deployment. Yard management systems coordinate inbound and outbound transportation. Integration with retailer systems for store-specific requirements and delivery scheduling. Expiration date tracking and FEFO logic for perishable items.

Throughput capacity is the primary driver—systems must handle peak volumes without bottlenecks. Case-handling capability across varying case sizes and weights is essential. Pallet-building quality directly impacts transportation costs and store receiving efficiency—poor pallets lead to damage and receiving delays.

Integration with retail partners' systems is critical for store replenishment operations. EDI connections, advance ship notices (ASNs), and compliance with retailer requirements are non-negotiable. Scalability should support both volume growth and additional retail customers with different requirements.

Start with highest-volume customers or product categories to maximize ROI. Store replenishment automation typically has clearer payback than e-commerce due to higher volumes and more standardized processes. Implement robust slotting and wave planning before adding physical automation—software optimization often delivers significant benefits with lower investment.

Plan for promotional events and seasonal peaks from day one. Build surge capacity or flexible labor models into the design. Test pallet-building algorithms thoroughly with actual store requirements—compliance failures create costly chargebacks from retailers. Ensure adequate quality control checkpoints to catch errors before shipment.

Consider separate processing for e-commerce if volumes justify it. The operational requirements for case-picking store replenishment versus piece-picking e-commerce orders are quite different. Trying to optimize for both simultaneously often results in compromises that reduce efficiency in both channels.