Warehouses and distribution centers are managing more SKUs than ever before. While a broader product mix can help meet customer demand, it also introduces significant challenges around warehouse storage, picking efficiency, and safety.
Below, we break down the most common problems warehouses face as SKUs increase, as well as proven solutions to improve productivity and order accuracy.
What Challenges Do Increasing SKUs Pose for Warehouse Operations?
As product lines expand, warehouse managers must handle inventory management at an entirely new scale. The three most common order picking challenges include:
1. Storage Challenges
- Limited Storage Space: As SKUs multiply, existing shelving often reaches capacity.
- Mixed Inventory Issues: Combining multiple SKUs in the same bin or shelf slot slows down picking and leads to more mistakes.
- Shift Away from Bulk Orders: With full-pallet picking becoming less common, small-batch and single-item picking require even more organized storage systems.
Impact on business: Poor storage layouts force managers to prioritize customers, which can ultimately lead to longer fulfillment times and dissatisfied clients.
2. Productivity Challenges
Order picking accounts for up to 55% of warehouse operating costs. Without a strategic approach, adding more SKUs can slow everything down.
- Inefficient layouts cause employees to walk longer distances to complete orders.
- Mixing SKUs in a single bin increases search times and errors.
- Mistakes in picking lead to costly returns and lower customer satisfaction.
Maintaining organization is key to keeping productivity high as SKU counts grow.
3. Safety Challenges
The more SKUs you manage, the busier your facility becomes, which increases the risk of accidents.
- Overstocked shelves and disorganized racks make falling products more likely.
- Inexperienced or rushed operators are more prone to injury.
- More equipment and foot traffic increase the chance of collisions.
According to OSHA, 70% of forklift accidents are preventable with proper training and maintenance.
How Can Warehouses Address Storage Limitations from More SKUs?
When SKU counts rise, the right storage optimization strategy is essential:
- Consult with a Warehouse Product Specialist: Request a flow assessment to evaluate how inventory is stored and picked.
- Adopt High-Density Racking Systems: Increase usable space while keeping SKUs separated and accessible.
- Use Narrow-Aisle Picking Equipment: Smaller, more agile forklifts and order pickers help maximize vertical storage.
What Strategies Improve Order Picking Efficiency Amid SKU Growth?
Enhancing picking efficiency reduces costs and keeps fulfillment on schedule. Key strategies include:
- Designate a Unique Pick Location for Every SKU: Avoid mixing SKUs to minimize confusion and picking errors.
- Create ABC Velocity Zones: Place fast-moving products (“A” items) in central, easily accessible locations to speed up order picking.
- Prioritize Ground-Level Storage: Store high-demand SKUs where they’re easiest to reach to reduce vertical picking time.
- Implement a Warehouse Management System (WMS): A modern WMS tracks inventory in real time, optimizes picking routes, and integrates with warehouse automation technologies to significantly reduce errors and labor costs.
How Can Warehouses Maintain Safety with Increasing SKU Volume?
Growing SKU counts don’t just affect storage and productivity. They also introduce warehouse safety challenges:
- Provide Continuous Employee Training: Educate new and temporary staff on picking hazards and proper material handling.
- Equip Operators with Proper Tools: Ensure ladders, platforms, and personal fall protection gear meet OSHA standards.
- Maintain Forklifts and Other Equipment Regularly: Following manufacturer-recommended maintenance schedules prevents breakdowns and accidents.
- Follow Rack Safety Best Practices: Don’t overload shelving, secure loose items, and keep aisles clear to prevent collisions.
We Can Help Optimize Your Order Picking Process
Managing SKU growth is a challenge, but you don’t have to face it alone. At Papé Material Handling, our experts help warehouses and distribution centers improve inventory management, storage optimization, and picking efficiency.
Contact a warehouse product specialist at your nearest Papé Material Handling location today and discover solutions tailored to your facility’s needs.
