Warehouse Re-design And Re-layout

August 16th, 2011

Is there a need to redesign your warehouse for better operational efficiencies? Several warning signs reveal that warehouse efficiency is deteriorating: -

  1. Congestion, need more space to conduct warehouse activities
  2. Delivery or shipping errors have increased
  3. Order processing time has increased
  4. Warehouse activity’s efficiency has decreased (items misplaced, inaccurate inventory data)
  5. Warehouse operating cost has increased

Does these sounds familiar in your current warehouse operation? If that is the case, you may have to seriously look into the possibility of re-design and re-layout your warehouse facility and operation.

There are many aspects you need to consider prior to re-design and re-layout your warehouse facility. Data collection and gathering is crucial that include:

A. Company policy

  • Stock replenishment policy (such as just-in-time)
  • Stocks keeping policy (price fluctuation, special offer, shortage)

B. Nature of business

  • New business expansion or diversification plan (expand from manufacturing to retailing or trading)
  • Product line expansion or diversification

C. Sales/Shipping Information

  • Number of items or products shipped daily, weekly, monthly
  • Products combination (low mixed but large volume or high mixed but low volume)
  • Shipping patterns for daily, weekly, monthly or seasonality
  • Number of customers
  • Geographical locations expansion

D. Purchasing Information

  • Number of items
  • Number of SKUs, New packing, New cubic dimensions
  • Receiving patterns (when is the peak)

E. Receiving/Put-away/Retrieval/Storage Information

  • Number of items or products
  • Number of SKUs
  • Specifications of SKUs such as cubic dimension, weight, storage condition, turn ratio
  • Throughput daily, weekly, monthly (Current and Future Projection)
  • Seasonality of items or products
  • Goods receiving patterns (daily, weekly, monthly)
  • Number of suppliers
  • Quality policy

Without good and adequate data, it is extremely difficult to include high degree of accuracy in your warehouse design and layout.