The Consumer Packaged Goods (CPG) sector faces constant pressure to keep operations efficient and cost-effective while managing a growing variety of products and meeting rising consumer demands. With the push towards direct-to-consumer (DTC) models and increasing inventory turnover, CPG companies need to streamline their warehouse and distribution processes. Rising labor costs and the need to handle diverse product ranges add to the complexity, making it crucial to optimize every aspect of distribution.
Consumer Packaged Goods (CPG)
Industry Dynamics
Common Industry Challenges
Accurate Order Fulfillment
As SKU counts rise and demand fluctuates, ensuring precise order fulfillment becomes increasingly vital. This is particularly true as large e-Commerce providers close the gap on consumer shipping expectations, with many shoppers expecting delivery within 1-2 days.
Capacity Management
The growth in product variety and the demand for faster delivery require a strategic approach to managing warehouse capacity. Effective space utilization and inventory management are essential to accommodate changing product mixes and order volumes.
Labor Costs and Shortages
The CPG industry is grappling with high labor costs and shortages due to an aging workforce and evolving labor dynamics. Addressing these challenges involves investing in technology that can reduce reliance on manual labor and improve operational efficiency.
Solutions
In this competitive landscape, automation and advanced technology solutions are key to enhancing productivity, accuracy, and flexibility.
Automated Storage and Retrieval Systems (ASRS)
ASRS solutions optimize high-density storage, allowing for efficient management of large SKU inventories. These systems enhance accuracy, improve inventory control, increase storage capacity, and streamline order fulfillment processes.
Adaptable Automations
- Implementing adaptable automation and robotics solutions helps manage growing SKU bases and fluctuating order volumes.
- Technologies such as Automated Guided Vehicles (AGVs) and Goods-to-Person systems improve efficiency and reduce labor costs in high-volume, repetition environments.
High-Density Storage
Leveraging high-density storage solutions maximizes warehouse space and improves inventory management.
DLN focuses on the specific needs of the CPG sector with smart automation solutions that boost efficiency, cut costs, and support growth. Our deep knowledge of advanced distribution technologies helps CPG companies tackle industry challenges and stay ahead in a changing market.
