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Warehouse space planning

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Warehousing is expensive. cost of the land, building, machinery, labor and the items stored in the warehouse –consumes bulk of money
How do the companies reduce this cost
Maximize the operation by
Streamlining the placement and picking of goods
Reducing the time goods are stored in the warehouse
Automating as much as possible to minimize labor costs

Published in: Engineering
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Warehouse space planning

  1. 1. Warehouse space Planning Group 05 University of Moratuwa ,Faculty of Engineering Department of Transport &Logistics Management 2012 Batch
  2. 2. Slides Outline • Large vs Small Warehouses • Cost and warehouse space • Warehouse space planning • Basic steps • Key factors • Advantages • Overall strategies • Future outlook
  3. 3. Large warehouses vs small warehouse Large Warehouses • Not always a good practice • Can store large number of goods- But cost is high • Space may not be utilized • Unnecessarily long travel time between locations – high fuel cost, Labor cost, Delays in loading and unloading Small Warehouses • Can cause companies for innovative thinking • Maximum utilization • Shorter travel time between locations – less loading and unloading What is the thing that you always run out of in a warehouse Space
  4. 4. Cost and Warehousing space • Warehousing is expensive. cost of the land, building, machinery, labor and the items stored in the warehouse – consumes bulk of money How do the companies reduce this cost • Maximize the operation by 1. Streamlining the placement and picking of goods 2. Reducing the time goods are stored in the warehouse 3. Automating as much as possible to minimize labor costs • Further costs can be minimized by maximizing the space utilization - ensuring that it is possible to store as many items as possible in the most optimum space Maintain Accuracy
  5. 5. What is space Warehouse Planning? Warehouse planning is the process of deriving a method of optimizing warehouse space by finding creative storage solutions, Material handling, Inventory control, etc.
  6. 6. Basic Steps in space planning 1. Determine what is to be accomplished 2. Determine how to accomplish it 3. Determine space allowances for each element required to accomplish the activity 4. Calculate the total space requirement
  7. 7. Two major areas that need Warehouse space planning Receiving and Shipping Activities Storage Activities
  8. 8. Selective Pallet Rack selective pallet rack provides efficient use of space and immediate access to every load or pallet stored. Because it provides the best ratio of storage capacity to product selectivity, Double-Deep Rack This eliminates the need for an aisle between two storage racks and saves up to 65% of the available floor space. Double deep systems require deep reach lift trucks. Different Racking Systems
  9. 9. Drive In Pallet Rack Push Back Pallet Rack Pallets are stored in lanes and rest on a carts-on-rails system. Working from a single aisle, pallets are stored by “pushing back” previously placed pallets with a new pallet on the next cart position. Loads are densely stored in lanes several positions deep, and lift equipment actually enters the rack structure in order to store and retrieve them Different Racking Systems
  10. 10. Pallet Flow Rack Pallet flow works something like a conveyor system within the rack. Pallets are loaded at the charge or input end and then flow down inclined rollers to the pick faces Cantilever Rack Systems Cantilever Rack is ideal for long or bulky items such as furniture, appliances, flooring, lumber, tubing, textiles, and piping. Different Racking Systems
  11. 11. Why SKU’s matter for space • SKU’s ( stock keeping units) represent all the unique products stored in the warehouse • Products may have many variants based on attributes like size, color or conditioning
  12. 12.  SKU is the most desirable level for inventory optimization Why SKU’s matter for space
  13. 13. Advantages of warehouse space planning • Space planning involves re-evaluating the space you have for work and storage • Can use advanced warehouse technologies • Can mix storage media and a labor efficient layout • Increases the efficiency of the space available • Extra space can be created simply by reorganizing what is already in place. • Can store the whole range of material needed
  14. 14. Advantages of warehouse space planning • Inventory can be opened up to provide additional workspace • Increases productivity and accuracy • Makes items easier to find and access when needed • Being able to store more in the same square feet of space means being able to carry more inventory • Cutting down on back-orders and increasing customer satisfaction • Making it possible for a company to expand into the space they have
  15. 15. Overall warehouse space strategy • Connect with warehouse customer • Use customer business development and sales teams • Create project team including all involved in touching the product to develop warehouse strategy • Be involved with product and equipment planning early in the process
  16. 16. Overall warehouse space strategy • Anticipate future warehouse products and Applications • Review warehouse equipment requirements with suppliers and manufacturers • Contact available industry expert resources
  17. 17. Future outlook • Concept of Virtual Warehousing • Green technological aspects • Automated processes integrated with software
  18. 18. References • Optimizing Warehouse space –Tim Osmulski • http://www.trommerinc.com/warehouse-space-planning.aspx • Warehouse IQ ( Distribute Knowledge) - http://www.warehouseiq.com/new-warehouse-setup/ • Warehouse Management Handbook- James A. thompkins • http://www.sec-online.co.uk/our-approach- storage/warehouse-space-planning
  19. 19. Group Members • 121502T • 121436T • 121490C • 121503X • 121430U • 121431A • 121496B • 121462T • 121493M

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