With the onset of so many emerging categories in the industry — kombucha, coconut water, relaxation drinks — coupled with line extensions, the number of SKUs warehouses need to accommodate continues to grow. The SKU proliferation that distributors and others alike see taking place in the beverage industry has presented the challenge of handling a more diverse product assortment while still remaining in the confines of a warehouse’s square footage.
“I don’t think the SKU proliferation game is going to slow down anytime soon,” says Lonnie Watkins, strategic account manager of integrated systems with Dematic North America, Grand Rapids, Mich. “… SKU proliferation is a big deal and just the pure volume of product that some of these warehouses are trying to move now; because of that, we’re seeing larger spaces, and we’re seeing desire for them to find more efficient ways to move that product into their operations and get into the trade.”