The Top Warehouse Innovations for Wholesalers

Warehouse innovation is a critical component for wholesalers, transforming the warehouse from a simple storage facility into a strategic asset that drives efficiency, profitability and competitive advantage. 

In a fast-paced and competitive market, outdated practices can lead to significant losses. On the other hand, innovative approaches can become a key driver of growth.

Beverage alcohol wholesalers such as Breakthru Beverage Group, Southern Glazer’s Wine & Spirits and Republic National Distributing Company are constantly looking for ways to keep their companies ahead of the competition. Especially with the current economic uncertainties with rising prices and changing consumer preferences, warehouse innovation can keep distributors afloat during difficult times. 

The Dynamic Pallet Builder

For more than 20 years, Lucas Systems has been helping RNDC to optimize its distribution centers by providing warehouse voice picking and adjacent technologies. Utilizing different systems such as Jennifer and the Lucas Management Console, RNDC has doubled bottle picking productivity while also improving accuracy to an impressive rate of over 99%, according to a 2024 case study. 

Continuously looking for ways to optimize distribution for its customers, Lucas Systems recently debuted a pallet-building technology in early 2025. Dubbed the Dynamic Pallet Builder, this software sifts through a myriad of data points to determine the trade-offs needed to optimally pick, group, sequence and stack items on one or more pallets at a time. 

The software is also configurable to match a company’s operations as well as recompute optimal pallet builds in response to orders flowing in the warehouse. 

“It’s constantly and dynamically optimizing throughout the day,” says Lucas Systems CMO Ken Ramoutar. “Smarter pallet building also means smarter picking. Building better pallets can have a significant impact on reducing damage, minimizing worker travel, reducing transportation mileage and improving productivity.”

Another Lucas Systems customer is Veritable Vegetable, who uses the Dynamic Pallet Builder to better optimize its delivery routes. The California-based organic produce distribution company uses a two-part voice-directed picking process to split its pallets. In doing so, its pallet-building logic is tailored to precisely match its trucks and delivery operations.

“This personalized approach provides optimal efficiencies for us, and it also gives our customers more flexibility when placing orders. Both are extremely important,” says Veritable Vegetable owner and CEO Mary Jane Evans.

Technological Investments

Breakthru Beverage Group is continuously looking to drive innovation in all of its warehouses. Over the last few years, the distributor has made strategic investments to strengthen its operations, ensuring they can deliver seamless service even amid a changing environment. 

“Our focus is to build for the future and ensure that our infrastructure and capabilities align with our customers’ needs and our growth ambitions,” explains Julian Burzynski, EVP and chief operating officer at Breakthru. “In recent years, Breakthru invested more than $75 million into its operational capabilities across its footprint by expanding warehouse capacity, incorporating new technologies and bolstering automation.”

At the beginning of 2025, Breakthru appointed Glenn Remoreras as the company’s chief information officer. According to Burzynski, he dove right in, making comprehensive improvements to the company’s IT infrastructure and digital capabilities. 

“We’ve invested in new data sources and analytics platforms that put the consumer at the heart of our operations,” adds Burzynski. “These insights are actionable by our sales teams while in the field servicing our accounts. This has led to promising results ensuring we have the right product in the right account ready for the right consumer.” 

As technology continues to advance, Breakthru will continue to make investments in this area to strengthen company processes, making it easier for its suppliers and customers to do business with them. 

“BREAKTHRU NOW is our B2B e-commerce solution that provides real-time, expanded portfolio access, and an enhanced customer experience to make Breakthru the easiest distributor to work with,” says Burzynski. “It was developed in partnership with suppliers to broaden exposure of their brands and allow customers to manage their business anytime, anywhere enabling them to drive growth and optimize decisions. We leverage technology to enhance our business and services, offering a digital connection with customers while maintaining a seamless and supportive experience that aligns with how we serve them in person.”

Exciting Strides for Southern Glazer’s

Southern Glazer’s Wine & Spirits is another distributor that aims to stay ahead of its competition through strategic warehouse innovations. Recently, at the company’s Geismar, Louisiana location, they installed a new conveyor belt and palletizing system with energy-efficient upgrades. 

“We’ve also started using drones for automated cycle counting, which boosts inventory visibility and keeps our team out of high-risk tasks,” says Karli Sage, senior director of emerging technology at Southern Glazer’s. “On the delivery side, we’re piloting image-based proof-of-delivery and real-time tracking labels, giving suppliers added confidence. These innovations help us build safer workplaces, improve relationships and create customer trust, all while scaling responsibly.”

And Southern Glazer’s isn’t stopping there. Right now, the company is actively exploring autonomous mobile vehicles, collaborative robotics, space-efficient storage systems and digital simulation tools that help model operations before making changes. 

“A great example is our partnership with Symbiotic — bringing in AI-enabled automation to optimize how we store, retrieve and build mixed-SKU pallets,” says Sage. “Beyond robotics, we’re especially interested in tools that improve planning, strengthen supplier collaboration and create a smoother experience for everyone. The focus is on enhancing human decision-making, and we expect to pilot several of these technologies soon.”

Keeping the Middle Tier Alive and Thriving

These companies showcase just how important innovation is for a thriving and fully operational warehouse. Here’s a quick breakdown of some other ways in which distributors can benefit from warehouse innovation:

1. Increased Efficiency and Reduced Costs

Operational Streamlining: Innovation, particularly through automation and robotics, optimizes every process from receiving and put-away to picking, packing and shipping. This reduces manual labor, travel time and bottlenecks, leading to faster order processing and higher throughput.

Reduced Labor Expenses: Automated systems, such as automated guided vehicles (AGVs) and robotic picking solutions, handle repetitive and labor-intensive tasks. This reduces the dependency on manual labor, lowers labor-related costs and frees up human workers to focus on higher-value activities like customer service and problem-solving.

Cost Savings: By improving order accuracy and reducing human errors, innovation minimizes the costs associated with returns, re-shipping and managing damaged goods. It also helps reduce inventory carrying costs by preventing overstocking.

2. Enhanced Inventory Management and Accuracy

Real-time Visibility: Technologies like barcode scanning, RFID tags and warehouse management systems (WMS) provide real-time, up-to-the-minute visibility into inventory levels and locations. This eliminates costly inaccuracies and issues like misplaced items or stockouts.

Data-Driven Forecasting: Advanced systems use AI and machine learning to analyze historical sales data, market trends and even external factors to forecast demand more accurately. This enables wholesalers to maintain optimal stock levels, ensuring they have enough merchandise to fill every order without tying up cash flow in excess inventory.

Improved Space Utilization: Innovative warehouse layouts and vertical storage solutions, often enabled by automated systems, maximize storage space. This allows wholesalers to store more products in the same footprint, reducing the need for new, expensive warehouse facilities.

3. Improved Customer Satisfaction and Brand Loyalty

Faster and More Accurate Fulfillment: Automation and optimized workflows significantly accelerate order fulfillment and reduce lead times. This meets customer expectations for quick and reliable service, which is crucial in today’s e-commerce-driven market.

Higher Order Accuracy: Automated picking and packing systems are programmed for high precision, dramatically reducing the chances of sending the wrong product. Accurate orders minimize returns and exchanges, which in turn builds customer trust and brand loyalty.

Greater Transparency: Real-time tracking and inventory visibility allow wholesalers to provide timely updates to customers regarding order status, from processing to delivery. This transparency builds trust and enhances the overall service experience.

4. Scalability and Adaptability

Response to Demand Fluctuations: Innovative systems are designed to be scalable and flexible, allowing wholesalers to easily adjust to seasonal fluctuations and sudden spikes in demand without a proportional increase in labor or resources.

Resilience Against Disruption: By providing a transparent and efficient supply chain, warehouse innovation helps businesses become more resilient to unexpected disruptions, such as transport delays or labor shortages. Having backup stock and real-time data allows for quick adaptation.

5. Competitive Advantage

Proactive Growth: In a competitive market, a well-optimized and automated warehouse is a powerful growth driver. It allows wholesalers to not only keep pace with demand but also to gain a significant edge over competitors who rely on outdated, inefficient systems.

Data-Driven Decisions: The data collected by innovative warehouse technologies provides valuable insights into operational performance. Wholesalers can analyze metrics like order accuracy, fulfillment speed and inventory turnover to identify areas for improvement and make strategic decisions that drive long-term success.

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