Fundamentals of Warehouse Design and Operations

Warehouse design and operations are at the heart of a companies logistics and supply chain unit. With an experience of 38 years in the supply chain & logistics industry, Mal Walker has poured in his knowledge by stating some basic principles of warehouse management. The following article states and discusses the prerequisites to consider while determining warehouse design and operations.

1. Minimal touches of goods

It is important to have a clear understanding of the number of touches involved in a warehouse. Automated warehouses help in decreasing the number of touches. It is advised that the process should have a maximum of 3-4 touches.

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1. One way flow & 5 rules for vehicle

One-way flow is a very good principle to apply during the design process because that way one can plan their picking path through the warehouse, replenishment paths, and so on. Vehicles movement should be in a clockwise direction around the warehouse. So that the driver can reverse on the right side if they have to get back into the dock.

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1. Stock is in the right place

Categorizing inventory and using proper storage methods maximizes your existing facility and frees up previously wasted space to increase capacity and improve efficiencies. There are two types of warehouses based on inventory placement.

Triadic warehouse

A warehouse segregated in these 3 zones is called a triadic warehouse

1. The FAST MOVING product zone
2. The medium moving product zone
3. Slow-moving product zone

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Non Triadic warehouse

?A warehouse that has no zones is non-triadic.

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4.? The right amount of stock

This is about inventory control. Since the products are involved in a constant movement it is important to understand the right amount of stock to be stored in the warehouse. This helps in avoiding losses.??

5. Efficient labor

Regardless of your industry, effective labor management in the warehouse is an integral part of supply chain success. The right workforce and a high level of employee morale will contribute to improved profit margins, reduced risk of errors in order fulfillment, and more. Order lines picked per labor hour formula can help in understanding the work in a better way and comparing it monthly. It is a useful measure. Some companies use this as a measure for giving out incentives. One can save up to 32% on labor costs by doing that.

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6. Benchmarking

Benchmarking in warehousing as an examination of best practices in other warehouses, ideas that can and should be applied in your operation. The goal of benchmarking is to stimulate continuous improvement or to attain superior performance. Here are five benefits:

• Improving the ability to meet customer requirements
• Establishing realistic goals
• Determining accurate productivity measures
• Obtaining a competitive position
• Searching for industry best practices

7. Selecting the right materials handling system

Reliable material-handling equipment ensures safer, faster, and efficient material movement. If there is a low number of SKU and low volume then you have to use simple materials handling system. As the volume increases you have to use a medium level of mechanization.

8. Know your data

Data analysis is benefiting from new technology tools by allowing analysts to dig more deeply into supply chains. Transparency and visibility are crucial, particularly if something goes wrong while shipments are in transit. By utilizing data, a split-second decision doesn’t have to be made without adequate support. t is crucial to have exact information about receiving, picking, packing & returns.

9. Warehouse management software

WMS is an invaluable piece of software for any company. The supply chain can operate only as quickly, accurately, and efficiently as warehouse processes permit. A WMS plays a vital role in supply chain management by managing order fulfillment processes, from receiving raw materials to shipping finished goods.

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10. Consult widely

Understanding the warehouse requirement of people belonging to different levels of operation in an organization is very important. This helps in understanding the dynamics that go into the process of warehousing. Architects, engineers, and environmentalists.

Planning a warehouse layout design can be a complex process due to the various factors involved. This process includes strategically planning a facility layout that can properly utilize the space available, facilitate the smooth functioning of operations, and increase efficiency. It is difficult to find a service provider that adheres to the said principles. Edgistify is one of India’s largest warehouse operations and fulfillment networks that not only follows these principles of warehousing but also maintains standardization and centralization across all its warehouses.

To know more- visit us at www.edgistify.com