SKU replenishment is a major component in the efficiency of warehouse picking and packing. If a picker goes to a designated pick slot, but finds it empty, multiple people and processes are affected. The picker gets stuck on the current order trying to track down the necessary product. Staffers in charge of replenishing the pick slots stop what they're currently doing to address the problem. Order filling is delayed until the right item is found and the order completed – or worse, the order ships incomplete and a second shipment is required with shipping costs paid by you.
In combination with optimal inventory locations, well-timed SKU replenishment can greatly improve fulfillment efficiencies. Below are a few methods you can use to control SKU replenishment rates:
This method establishes the maximum number of products a slot can hold and the minimum quantity it should have at all times. The minimum quantity threshold provides a "safety net" of products in stock that gives you time to replenish the slot before it runs out completely.
This method measures the demand for a SKU within a batch of orders and compares it to the current quantity in the pick slot. The demand exceeds the current quantity, the slot is marked for replenishment. In combination with the min-max method, on-demand SKU replenishment is especially useful for keeping pick slots full during peak season or sudden increases in order volume.
Also known lean time or downtime SKU replenishment, the top-off strategy refills pick slots when the warehouse isn't busy - regardless of the slot's quantity. This ensures that pickers will have all the product they need when orders start pouring in.