“In this bad economy,” Brzozowski adds, “a lot of companies are trying to become more efficient right now. They’re looking to cut costs and the primary way to do that is by having your productivity at its maximum and having your cube utilization at its maximum. And if you’re at that level, then you’re going to be able to add more dollars to that bottom line because it’s going to cost you less labor to get the product out the door.”

Representatives from Raymond’s Sales and Service Center network provide consultation to customers every day, not only with regard to electric lift trucks, but also about setting up their operations. They recommend that DCs begin consultation before they break ground on any new facility, but also can provide advice when retrofitting an existing facility. Consultation includes defining the types and quantities of product to be stored and the movement around those products.For example, how are they received in, stored, order picked and shipped out again. Once these things are defined, Raymond experts can recommend racking, layout and equipment to ensure the product is stored and moved efficiently. The building can then be designed around the material handling system, helping the company meet all of its goals.

According to Brzozowski, who has been working in this field for 31 years, there are many ways to maximize a facility’s space. But just remember one important fact, he says: “Everybody is separate and distinct. I’m not going to go into one beverage facility and say, ‘Hey I was in this other place yesterday and this is what I did.’ It can be very different for many different people and that’s the magic of developing a system that suits the need.”

For many beverage operations with large volumes of a limited number of SKUs, a bulk storage set up—where pallet loads are stacked three or so high on the warehouse floor—can be the way to go. But the wasted space arises when the ceiling is high enough to allow for more product to be stacked above those pallets. This is when a good racking system, which can extend those pallets towards the ceiling, can help to maximize out the cube utilization of the warehouse. Says Brzozowski, “They can be torn between the productivity that they might be getting in a bulk situation versus what it would be if they went higher and more dense. So it’s a toss-up based on what that particular situation is with that particular warehouse. In some cases, people are fine with it. In other cases, depending on if they are having problems in cube or whatever, either they have to expand or they change their application. Although it could be justified, it often causes a lot of issues when it comes to labor and things of that nature. So it’s got to be well thought out. It’s not an easy thing.”

In fact, Edward Kitt, vice president of distribution center management for Penske Logistics, says one of the new challenges facing beverage distributors today looking to maximize warehouse space comes from an unexpected place: the beverage package. While canned drinks can be pretty stable stacked high, some of the newer greener bottles cannot take as much weight. “They’re reducing the amount of plastic within the bottle, so that’s where you have the opportunity with flow rack and how do you create that density going up and get as much of the space utilized within the facility. So taking a look at various racking components is very helpful with being able to utilize that upwards space.”

Mike Klaer, vice president, Twinlode Corp., which offers a patented high-density drive in racking system for two pallets at a time, says the proliferation of SKUs is forcing beverage distributors “to be smarter about the storage medium that they choose. They really need to take an in-depth look at their situation, whereas years ago when there were half the amount of SKUs, there were a handful of storage types that would work for almost every beverage company across the country.”

Twinlode is typically used in warehouses that have fast-moving SKUs, Klaer points out. “Not everybody’s warehouse is full of fast-moving SKUs so you’ll put your A’s in Twinlode and pull them off your palletizers two at a time, load them in your rack two at a time and ship them out two at a time, and then you look at other racking types which we also offer for the B and C items,” he says.

There are a variety of conveying and picking systems that cater to distributors looking to maximize their warehouse space. For instance, Ryson recently debuted High Capacity Spirals in response to its customers’ need to go higher and handle more weight. While Hartness Vertique Warehouse Automation specializes in “mixed case” picking and palletization with Vertique systems that maximize warehouse space and minimize labor. The Vertique system resembles a giant automated vending machine that combines proven computer-controlled technology with the basic law of gravity. Its vertically designed column of towers utilizes previously “wasted” space. And its cascading process facilitates hands-free picking.

From Beverage World June 15, 2010