What Is Order-To-Shelf Technology?
In the world of supply chain innovation, Order To Shelf Technology is the next big thing. In 2016 Whole Foods and Target both switched over to this ordering process and have seen significant results (some good and bad). Now when store employees put in an order they provide a precise count of products needed for replenishment instead of a general estimate. When the order is received by the distribution center the items are precisely packed on pallets based on the layout of that store. This allows the items to be brought in off the truck and immediately stocked on the shelves avoiding overstock in the backroom.
How Does Order-To-Shelf Technology Work?
In this type of system, full cases of product are broken down at the warehouse into “inner packs” or individual items, which are then stored in plastic totes. These “donor totes” are then conveyed automatically from their storage areas to the warehouse workstations, and the workers select product from them and place the product in outbound delivery totes based on orders placed by individual stores (more info).
The Good That Order-To-Shelf Technology Brings
So far the technology has been able to shrink the need for backroom inventory as the ordering process is more precise and saves hours for their workforce in restocking the shelves.
The Bad That Order-To-Shelf Technology Brings
The store-ready logistics put’s an extra burden on the distribution center as now they need to implement new packing procedures to accommodate the grocer’s needs and when an issue in the technology disrupts the workflow shipments can be delayed forcing shelves to remain empty.
What’s To Come?
Like all new innovation, there is going to be a learning curve. Retailers and distributors will need to have an open line of communication and work together to ensure the shelves stay stocked and consumers stay happy.
Latest posts by Bruce Nagle (see all)
- How CPG Brands Can Find Opportunity Amid The Crisis - August 12, 2020
- How to Improve ROI on Your Broker Investment - July 10, 2020
- Competitive Pricing And The New Normal - June 19, 2020
Comments are closed.