The presentation is basically for things we should keep in mind while shifting warehouse or taking new distribution center for retail operations basically for storing furniture and household items. It also includes few best practices which modern warehouses should have for faster , smoother and better operations.

1. Presented By:
Daipayan Adhikari
BUSINESS PLAN FOR WAREHOUSE
SHIFTING OR TAKING A NEW
DISTRIBUTION CENTER
BUSINESS PLAN FOR WAREHOUSE
SHIFTING OR TAKING A NEW
DISTRIBUTION CENTER

2. 6. WAREHOUSE OPERATIONS - RESOURCES6. WAREHOUSE OPERATIONS - RESOURCES
5. WAREHOUSE RACKING DESIGN5. WAREHOUSE RACKING DESIGN
3. SQUARE FOOTAGE & CBM PLANNING3. SQUARE FOOTAGE & CBM PLANNING
1. EXECUTIVE SUMMARY1. EXECUTIVE SUMMARY
2. WAREHOUSE SITE SELECTION2. WAREHOUSE SITE SELECTION
4. WAREHOUSE SETUP4. WAREHOUSE SETUP
7. BEST PRACTICES7. BEST PRACTICES
Table of ContentsTable of Contents

3. EXECUTIVE SUMMARYEXECUTIVE SUMMARY
The planning is based on receiving 90-100 containers per month and overall storage
capacity of 550-600 containers. Average inventory holding period is considered 4
mons.
Objective of creating the warehouse and Distribution Center of Excellence is :-
• Perfect Orders
• On time Deliveries
• Inventory Accuracy
• Order cycle time
• Workforce Utilization
• Shipping accuracy
• Order fill rate
• Optimize labor productivity
• Organized workstations
• Improved picking methodology

4. Selecting a warehouse is a major decision and choosing the right location of a
warehouse can make all the difference in the company's ability to compete and
effectively serve customers.
WAREHOUSE SITE SELECTIONWAREHOUSE SITE SELECTION
The Major 6 criteria while selecting the best possible warehouse location.
1. Rent Rates1. Rent Rates
2. Work force Availability, Labor Skills & Cost2. Work force Availability, Labor Skills & Cost
3. Roads & Traffic Flow3. Roads & Traffic Flow
4. Proximity to Ports4. Proximity to Ports
5. Markets & Local environment factors5. Markets & Local environment factors
6. Building availability & Utility Cost6. Building availability & Utility Cost

5. SQUARE FOOTAGE & CBM PLANNINGSQUARE FOOTAGE & CBM PLANNING
Storage CBM Calculation
Multitier Storage (sq.Feet)
No. of
bins
CBM Containers
Ground 2,648 7,150 110
1st 2,648 7,150 110
2nd 2,648 7,150 110
3rd 2,648 7,150 110
4th 2,552 6,890 106
Candle Office & Staging Area
Total 10,908 13,144 35,490 546
Standard size of a bin=1.1×3.3×2.3 = 8.3 /3 =2.7 (cbm X bins)
Container/CBM = 65
Total area of the WH (sq.Feet) 12,743
Total area utilized (sq.Feet) 10,908
Area left for staging (sq.Feet) 1,835
% Area left for staging 17%
Pallet Dimension
Description Length Width Sq. meter
Pallet Size 120 100 1.2
Planning
Inbound Staging (As per Target)
No of Container No of Pallets Sq. m Sq. Feet
5 20 120 1291
Outbound Staging (As per Target)
No of Container No of Pallets Sq. m Sq. Feet
5 20 120 1,291

6. WAREHOUSE SETUPWAREHOUSE SETUP
To setup a warehouse the following information to consider
1. Space Allocation1. Space Allocation
2. Storage space2. Storage space
3. Cold Storage3. Cold Storage
7. IT Requirements7. IT Requirements
5. Pantry & Washroom5. Pantry & Washroom
6. Vehicle Parking6. Vehicle Parking
5. Office5. Office
8. MHE’s8. MHE’s
9. Resources9. Resources
10. Fire & Safety Signage10. Fire & Safety Signage

7. 1. Space Allocation1. Space Allocation
 Storage Space Allocation planned as per the Rate of sale.
 We have categorized into Three classes
 “A” Class for Fast Moving items, “B” Class for Regular Moving
items, “C” Class for Average moving items & remaining slow moving
items.
 The “A “& “B” class items stored in Ground floor due to better
productivity and efficiency improvements.
 The “C” class items planned from 1st
Floor and 2nd
Floor.
 Seasonal items planned for 3rd
Floor.
 PQR & Damage items planned for 4th
Floor
2. Storage space Allocation2. Storage space Allocation
Space allocation planning as per storage and non storage

8. Warehouse Layout

9. RESOURCES FOR WAREHOUSE OPERATIONSRESOURCES FOR WAREHOUSE OPERATIONS
1. Receiving / Inbound1. Receiving / Inbound
2. Putaway2. Putaway
3. Picking3. Picking
4. Inventory Management4. Inventory Management
5. Shipping5. Shipping
6. Office staffs6. Office staffs

10. 1. Receiving1. Receiving
Average containers receiving / day : 4
Average receiving in cartons / day for 4 containers : 2,400
Average receipt in PCs / day for 4 containers : 19,200
AED average value / unit : 55
Manpower Required : 06 (45 Cartons/Hr)
Average containers receiving / day : 4
Average receiving in cartons / day for 4 containers : 2,400
Average receipt in PCs / day for 4 containers : 19,200
AED average value / unit : 55
Manpower Required : 06 (45 Cartons/Hr)
2. Putaway2. Putaway
Average containers receiving / day : 4
Average put-away in cartons / day for 4 containers :
2,400
Manpower Required : 08 (40 Cartons/Hr)
Average containers receiving / day : 4
Average put-away in cartons / day for 4 containers :
2,400
Manpower Required : 08 (40 Cartons/Hr)
3. Picking3. Picking
Picking Target (Pcs / hr)Picking Target (Pcs / hr)
Picking Details
Avg Qty : 25,000
Avg SKUs : 5,000
Avg Value : 1.2 million
Manpower Required : 20 (150 Pcs, 30 Skus/Hr)
Picking Details
Avg Qty : 25,000
Avg SKUs : 5,000
Avg Value : 1.2 million
Manpower Required : 20 (150 Pcs, 30 Skus/Hr)
Container Details Per Month
No. Of containers per month : 90
No. Of cartons per container :600
No. Of pieces per carton : 8
Container Details Per Month
No. Of containers per month : 90
No. Of cartons per container :600
No. Of pieces per carton : 8

11. 4. Inventory Management4. Inventory Management
Cycle Count Audit (Bins/Day)Cycle Count Audit (Bins/Day)
Bin Details
Avg Bins/Day : 270
No of Days : 90
No of Times/Year : 03
Manpower Required : 02
Bin Details
Avg Bins/Day : 270
No of Days : 90
No of Times/Year : 03
Manpower Required : 02
5. Shipping5. Shipping
Average trips / day : 10
Avg replenishment cartons / day for 10 stores: 3,125
Avg replenishment in PCs / day for 10 stores : 25,000
Manpower Required : 05
Average trips / day : 10
Avg replenishment cartons / day for 10 stores: 3,125
Avg replenishment in PCs / day for 10 stores : 25,000
Manpower Required : 05

12. MAN POWER ALLOCATIONMAN POWER ALLOCATION
1. Receiving / Inbound - 061. Receiving / Inbound - 06
2. Putaway - 082. Putaway - 08
3. Pickers - 203. Pickers - 20
4. Inventory / QC/ Audit team - 024. Inventory / QC/ Audit team - 02
5. Shipping / Outbound - 055. Shipping / Outbound - 05
8. Office staffs - 88. Office staffs - 8
7. Supervisors - 067. Supervisors - 06
6. MHE Operators - 046. MHE Operators - 04
9. Cleaners - 69. Cleaners - 6
10. Security - 210. Security - 2
Total Man Power Required – 73Total Man Power Required – 73
Annual Avg Attrition 10% - 6 NosAnnual Avg Attrition 10% - 6 Nos

13. MHE’s & PDT’sMHE’s & PDT’s
Reach Trucks - 2Reach Trucks - 2
PDT’S - 40PDT’S - 40
Hand lift trucks - 30Hand lift trucks - 30
BOPT - 2BOPT - 2
Fork lifts - 2Fork lifts - 2

14. Fire & Safety SignageFire & Safety Signage

15. BEST PRACTICES FOR WAREHOUSE AND
DISTRIBUTION CENTER OF EXCELLENCE
BEST PRACTICES FOR WAREHOUSE AND
DISTRIBUTION CENTER OF EXCELLENCE

16. MOVABLE CONVEYOR BELT

17. Movable Bin partitions

18. Cage trolley for quick off-loading at store

19. Net Door Fixed at container & vehicle end
to avoid falling of items while opening Doors
Net divider fixed in
Local transit
Containers
Close-up view of
divider frame in
container
Net divider fixed in
feeder transit 7.5 ton
vehicle

20. Box Pallet to Protect fragile items
Box Pallet to protect mirrors and fragile items
from in-transit damages.
Box Pallet with
removal led.

21. Mobile Locker
With the
implementation
of mobile
locker, We can
avoid
distractions
during working
hrs.

22. LED Industrial high bay light Lighting
Don’t use Industrial High
bay Light with Bulb
Power - 400w
Use LED Industrial High bay Light
Power – 150w

23. Staking height indicator
Staking height indicator should be fixed in bins for identification of
maximum height of the bin while put away as per par norms.

24. Cubi Scan – For measuring CBM
By introducing cubi scan we can easily capture the dimension and CBM
of the small and uneven SKUs. Its helps in avoiding manual work of
capturing CBM and provides accurate data.

25. PDT Cover
By introducing PDT covers for pickers, put away team and shippers its
will improve their productivity and reduces the chances of PDT getting
damage during work.

26. Plastic Sealing Machine – For Loose picking
By introducing plastic sealing machine to warehouse we can avoid the
items from getting dust and scratches on it while sending loose small
items to showroom or customer place from warehouse.

27. SUGGESTION FOR STORAGE
We can use pallet boxes for storing case pick
items (Small SKU’s) and shifting fragile items to
stores and other territories. It will protect the
items from getting dust on it and also from
damage.

28. SUGGESTION FOR LOADING
We can use reusable pallet straps or cargo net
for loading and sending items to other
territories. It will protect the items from falling
and saves cost for masking tape.