Westfalia Technologies, Inc., a leading provider of logistics solutions for manufacturers, warehouses and distribution centers since 1992, hosted a webinar, “How AS/RS Can Support SKU Growth Caused by Emerging Categories in Beer, Spirits and Fine Wine.” Discover how warehouse automation can support growth efforts by maximizing space utilization, combating consumption patterns and seasonality spikes, fulfilling orders, optimizing product handling, and reducing labor. For more information on how AS/RS can support beverage growth, contact Westfalia @ sales@westfaliausa.com or 844-391-9825

1. .
How AS/RS can support SKU growth caused by
emerging categories in beer, spirits and fine wine
3655 Sandhurst Drive, York, PA 17406
717-764-1115 | 1-800-673-2522

2. Beverage Webinar | Westfalia Technologies, Inc.
About Westfalia Welcome to Westfalia
• Privately-owned and operated
• Specialize in AS/RS and Satellite® technology
• Over 100 installations in North/South America
• Defined focus on Food / Beverage Industry
EST: 1992
Westfaila’s AS/RS is proud to be trusted by:
Our mission: To deliver unparalleled warehousing solutions by earning the trust of our customers, understanding their business needs an honoring the commitments we make.

3. Beverage Webinar | Westfalia Technologies, Inc.
1. Challenges faced by emerging categories
2. How to operate efficiently and optimize space
3. Review of a typical data analysis
Topics Covered

4. Beverage Webinar | Westfalia Technologies, Inc.
Latest Trends
Consumers rising disposable income
More educated consumer
Industry growth within emerging categories
Consolidationis happening
Latest trends

5. Beverage Webinar | Westfalia Technologies, Inc.
Beer
• Demographics: Males 18 to 35
• Consumer changes: Shifting taste
towards craft beers
• Industry Changes: Consolidation
Spirits
• Demographics: 15 to 34 years
• Consumer changes: Premiumization,
fascination with American whiskeys
• Industry Changes: Consolidation
Wine
• Demographics: Women, shift to consumers
under the age of 30
• Consumer changes: Consumption
escalates
• Industry Changes: Consolidation,
increase in private labels, mass
production
Maximizing space utilization

6. Beverage Webinar | Westfalia Technologies, Inc.
 Maximizing space utilization
 Combating consumption patterns &
seasonality spikes
 Fulfilling orders efficiently
 Optimizing product handling and reducing labor
Challenges Faced

7. Beverage Webinar | Westfalia Technologies, Inc.
Maximizing space utilizationMaximizing space utilization
MoreSKUs =
Less Space
1,200–1,500
300-400
SKUs
SKUs How will I manage?

8. Beverage Webinar | Westfalia Technologies, Inc.
Maximizing space utilizationMaximizing space utilization
Automation is key1,200–1,500
300-400
SKUs
SKUs
 Distributors and wholesalers are
struggling to find the space to store
 Warehouse space is at a premium
 New construction is far too expensive

9. Beverage Webinar | Westfalia Technologies, Inc.
Maximizing space utilizationRetrofit your existing facility
Do MORE with LESS
 Store more product in a smaller or same amount of space
 Room to accommodate for future growth
 No need for off-site storage or costly expansion
High-density, multiple deep AS/RS

10. Beverage Webinar | Westfalia Technologies, Inc.
Maximizing space utilizationMaximizing space utilization
• 604,907 sq. ft. facility
• 22,470 pallet positions
• 1.3 million cases store in
110K sq. ft. system
• Store up to 10 deep
• 200 pallets per hour
• Top 780 SKUs stored
and picked
• 8 integrated pick to belt
modules

11. Beverage Webinar | Westfalia Technologies, Inc.
Maximizing space utilization – Building Extension Example
• Optimized material flow.
• Free up 50,000 square feet of current floor
space for operational growth and re-layout.
• Non-optimal facility flow.
• Free up some floor space for other use.
• Cooler expansion, addition of SKU’s, etc…
Use existing space density yields:
6,432 pallet positions
New facility add-on yields:
6,030 pallet positions
Input Calc w/Spacing
Pallet Width (Inches): 40 50
Pallet Length (Inches): 48 51
Pallet Height (Inches): 72 72
Pallet Weight (LBs): 2999
Length Available (Feet): 300 67
Width Available (Feet): 160 32
Height Available (Feet): 24 3
Number of Crane Aisles: 2
Pallets/Level: 2,144
Total Pallets: 6,432
Total Square Feet: 48,000
Input Calc w/Spacing
Pallet Width (Inches): 40 50
Pallet Length (Inches): 48 51
Pallet Height (Inches): 72 72
Pallet Weight (LBs): 2999
Length Available (Feet): 300 67
Width Available (Feet): 85 15
Height Available (Feet): 40 6
Number of Crane Aisles: 2
Pallets/Level: 1,005
Total Pallets: 6,030
Total Square Feet: 25,500

12. Beverage Webinar | Westfalia Technologies, Inc.

13. Beverage Webinar | Westfalia Technologies, Inc.
Combating consumption patterns & seasonality spikes
Wine: 39%of wine is consumed outside of European countries and the
U.S. is now the world’s top-consuming country.
-State of the wine industry 2015
Combatting consumption patterns & seasonality spikes

14. Beverage Webinar | Westfalia Technologies, Inc.
Combating consumption patterns & seasonality spikes
Spirits: total U.S. volume growth increased 2.2% to 210 million cases in
2014
– 2014 U.S. Market Report
Combatting consumption patterns & seasonality spikes

15. Beverage Webinar | Westfalia Technologies, Inc.
Combating consumption patterns & seasonality spikes
You have 1,000 SKUs
200 account for 80% volume
800 account for 20% volume but are taking up space
Now what?
A little math problem

16. Beverage Webinar | Westfalia Technologies, Inc.
Combating consumption patterns & seasonality spikes
An AS/RS allows for better management of “slow-moving”
SKUs
• Warehouse Management System (WMS) integrates with
an AS/RS to allow for total inventory control
A little math problem

17. Beverage Webinar | Westfalia Technologies, Inc.
Fulfilling OrdersFulfilling orders
1. Integrating automated picking
Pick-to-light
Pick-to-belt
Pick-to-voice
2. WES software
Problem
• Fulfill orders in shorter time
• Maintain high service levels
• Reach broader range of
customers
• Remain competitive

18. Beverage Webinar | Westfalia Technologies, Inc.
Fulfilling OrdersFulfilling orders
• 334,000 sq. ft. facility
• 24,750 pallet positions
• 1.8 million cases
• Store up to 10 deep
• 300 pallets per hour
• 18,000 cases per hour
• 1,700 SKUs
• 294 pallet conveyor zones

19. Beverage Webinar | Westfalia Technologies, Inc.
Optimizing product handling
Bring the product to the worker
Ease physical labor
Decrease breakage
Save time, increase productivity
Cut costs

20. Beverage Webinar | Westfalia Technologies, Inc.
Other cost savingsCost savings
AS/RS equals
Reduction in square footage
Refrigerated warehouses
Reduction in energy cost by
30%
40%
24-35%
cost savings by
streamlining with
automation

21. Beverage Webinar | Westfalia Technologies, Inc.
• Additional 800 in keg volume not considered in the system analysis
• Focus on these SKU’s for high density storage to allow operations to bring in lower volume high margin brands
• Need is to bring in new SKU’s but automation focus is on high volume SKU’s
Data analysis – Beer distributor
800-1000 SKUs
in case volume
Top 200+ SKUs
80%of volume and pallet positions
50% floor space is free

22. Beverage Webinar | Westfalia Technologies, Inc.
Automation Advantages Review
• Automating high running SKU’s allow for freed up floor space to add
lower volume high margin brands without adding floor space
• Optimize pick floor with freed up floor space
• Eliminate pallet replenishment to picking operations with integrated
picking
• Fork-truck and manpower reductions
• Reduction in damage due to automation handling, no multiple
touches on product
• WES software control over entire facility inventory

23. Beverage Webinar | Westfalia Technologies, Inc.
EndingThe Road Ahead…
Investing in AS/RS
ROI in 3-5 years
25+ year lifespan

24. Beverage Webinar | Westfalia Technologies, Inc.
EndingThe Road Ahead…
Before you invest
Choose the right
automation partner
• Understands your business
• Focuses on YOUR needs
• Open and honest

25. Beverage Webinar | Westfalia Technologies, Inc.
Get your free warehouse
analysisnow.
Contact Info:
Aaron Corcoran 586-489-7217
acorcoran@westfaliausa.com
QUESTIONS??