Warehouse Logistics & Location Planning

Reduce Your Warehouse Costs and Improve Service Quality

Having warehouses in the right places and set up to run properly can make or break your companys competitive success. Do you have enough warehouses or too many? Is each warehouse in the right place? Is there a better way to optimize deliveries from your warehouses to your customers? How much could you save by reconfiguring your warehouse network?

Deploying inventory at remote warehouses locations and relying on outside parties to provide the kinds of service your company needs is a major logistics task where planning and execution mistakes can be very costly. Find out how our warehouse logistics consulting services can help your company in this important area of your logistics operations.

Our warehouse logistics services include:

Warehouse planning / setting up a warehouse Warehouse optimization analysis Warehouse site location evaluations Public warehouse rate and service negotiations Materials handling studies Warehouse design reviews Warehouse cost benchmarking Warehouse labor productivity evaluations Using our modeling approach we can also help you in planning the right number and location of warehouses for your distribution operations, assuring that you obtain the most cost-effective services available. Well evaluate your current warehouse logistics configuration, costs and needs, and well map your operations to provide a visual depiction of how materials and goods flow through your supply chain to your customers. Our modeling tools will develop an optimized warehouse logistics scenario complete with cost projections and savings estimates.

Our comprehensive services can also be used to find appropriate existing warehouse facilities, either public or private, or we can work with you to design a new facility from the ground up.

Warehouse facility planning

Warehouse facility planning project consists of several separated but mutually influencing and reinforcing phases:

Common concept Selected site location and site suitability for warehouse or logistic complex building Facility concept compliance with customer requirements and needs Data collection, analysis and settlement of restrictions (cargo category, levels of packaging, SKU (nomenclature) assessment, operations evaluation. Storage temperature control setting Facility allocation

Several conceptual plot planning options are provided. Every variation defines the buildings, roads, car parking and vehicle movement in the territories of the scheme. All variations are calculated for maximum usable floor area.

Warehouse size settings (height, width, column step, etc.) Total recommended warehouse area plan Ramp (receiving/shipping door) number and location Schemes of the building in different views Strategic warehouse layout design Areas (areas/zones in accordance of SKU flows, storage mode and specificity of individual area dimensions, loading zone size) Storage systems and handling equipment selection Layout of storage equipment, specifications of technical equipment, dimensions, loads Selection of storage equipment Cargo handling equipment specification and technology selection.

FAQ How to calculate the type, size and design of the new warehouse? Only experienced logistics consultants can help you to decide what height, width should be the object and how best it should be positioned on the plot. We can design the whole object with internal equipment and forecast human resources. What and how can determine the best warehouse layout? Reviewing the historical logistic data of the current business, forecasted flows of merchandise through the warehouse, we can decide and choose the most appropriate warehouse technological project. Who can suggest the best storage equipment to maximize the volume of the warehouse? We will help you to decide what storage system and how to choose and what storage method to use. We will advise you which technology is the best and how. You simply need to tell us your wishes and expectations. Is it possible to analyse warehouse volume effectiveness? We will help you to decide what should be your storage space how many items and how you can store, how many lines per day can be sent. We can identify the time when you will have to expand the warehouse according to your specifics.

How to ensure the suitability of storage equipment and product safety? We need to examine each stored product size, shape, quantity, and turnover. Then we can decide how best to use in your storage area and volume and select the most appropriate storage equipment (shelving, racks, carousels, flow rack system, etc.).

http://www.equinox.lt/en/logistic-consultancy/warehouse-facility-planning/

Planning Your Warehouse or Distribution Center

Seven Critical Steps to Planning Your Warehouse or Distribution Center

By Craig Bertorello There's no room for mistakes in today's economy-and that includes building or re-engineering distribution centers. Because these facilities are critical components of the supply chain, they require a detailed planning process to ensure they meet return on investment expectations. More than ever, the "measure twice, cut once" rule applies, since having to tack on additional capital outlays five, six, seven years down the road is costly. The projection of inventory and how it is to be stored and moved are the driving factors, as a 20% deviation on a 200,000 square foot storage area can result in a 40,000 square foot shortfall or surplus. In the final design phase, picking and storage will rule the day; yet they have opposing agendas. Large storage areas increase travel distances and reduce the picking efficiency. On the other hand, the ideal picking operation requires relatively small amounts of product stored in dedicated locations, relatively close to one another, which works counter to a facility's storage efficiency. When considering the design and layout of a new distribution center, it's important to first consider which of the four scenarios most closely resembles your operation:

Low Activity / Low Storage Requirements. This combination represents the simple, smaller warehouse operation. Rarely are automation or sophisticated storage and picking mediums or devices justified for these smaller operations. In most instances, floor storage, stacked pallets, simple pallet racks and/or conventional shelving are utilized within the facility, along with manual handling. Low Activity / High Storage Requirements. This combination typically calls for high bay, multi-level, high-density storage, and a random location strategy. Order picking can be manual or semi-manual. High Activity / Low Storage Requirements. This combination generally suggests a very condensed forward picking area supported by simple overstock storage. The high pick activity level often justifies automating the order picking system and the use of automated material handling systems. High Activity / High Storage Requirements. This combination is characteristic of a typical large distribution center. The high pick activity and high storage requirements often

justify the use of exceedingly automated order picking systems, heavily automated material handling and sortation systems and high-density storage. Gaining this understanding is not as simple as it reads. It requires a detailed analysis of the SKU order line item history over a prolonged period of time as well as a SKU inventory list complete with dimensions and weights. Other factors that can affect the activity and storage needs for a new distribution center might also include the expected growth rates (for number of SKUs, storage requirements and sales velocity of each SKU) over time, customer service level requirements such as 24-hour shipment after order placement, or consideration of new value-added services such as special giftwrapping or adding promotional materials to packaging prior to manifesting and shipping. Once the activity and storage requirements are understood, the planning process can be off and running. Keeping in mind that a distribution center may be a company's largest capital investment, as well as the final stop before the product reaches the customer... or doesn't, it's imperative the planning is done perfectly the first time. To accomplish this objective, here are seven critical steps to follow when planning a warehouse or distribution center. 1. Define goals and objectives. These should be closely aligned with the overall strategy for the new facility. They can be defined as minimizing warehousing operating costs, maximizing picking productivity, or simply providing the best customer service. They can also be defined more specifically, such as maximizing cube utilization, providing maximum flexibility in the final layout to accommodate future expansion or changes in business, or maximizing efficiency and productivity with a minimal amount of resources. 2. Document the process. Review the existing or proposed methodology and process, and conduct personal interviews with the staff dedicated to all major functional areas within the process. Recent changes in the economy may have caused some downsizing and movement of personnel to work areas they may not be totally familiar with, so be sure to interview enough people familiar with each functional area. If those interviewed can't identify areas of opportunity for improvement in their department or area, you should look to interview more from that department or functional area as there is always room for improvement. 3. Collect information and data. Collect any and all information specific to the new facility. Since it is best to work from inside the facility out when considering new construction, don't let any building constraints restrict design. When considering existing space for the new facility, make sure the information includes accurate drawings showing column sizes and locations, dock and personnel doors and locations, ceiling height restrictions, and ceiling girder/joist construction. It is also important to collect all relevant product information pertaining to the number of stock keeping units (SKUs) to be stored and picked within the facility, along with their dimensional measurements, weights, order history, and velocity data. 4. Analysis. Once information about the building and the inventory has been collected, a thorough analysis should be performed in order to determine if the goals and objectives can be obtained. The analysis should answer the following questions:

How well does the product flow into, within, and out of the facility? Does the forward pick area (pick modules) hold sufficient inventory to avoid excessive replenishment requirements? Is the storage system and area large enough to accommodate the inventory including any required safety stock?

What type of conveying and sortation equipment will be used? What are the staffing requirements? Does the operating budget include staffing, maintenance, utilities and the cost of the information system? How well will the facility adapt to a change in operating requirements? How effectively will the warehouse management system work with the automated material handling system?

If the analysis determines the goals and objectives can be met, the detailed solution and project plan can then be developed. If they cannot be met, then management should determine an alternate plan of action such as modifying the goals and objectives or making substantial changes to the building design. 5. Create a detailed project plan. This plan should identify all the steps required to create the warehouse or distribution center layout, including the overall goals and objectives, and the results of the information and data analysis used in developing the plan. The project plan should contain the major tasks to be undertaken, the resources needed to achieve each task, and how much time should be allotted to accomplish the tasks successfully. The project plan should include start and end dates for all tasks, as well as availability of resources. Once the plan has been developed, it should be reviewed and checked to be sure the timeline is realistic and attainable, as the available occupancy date of a new facility will dictate equipment delivery and installation. 6. Implementation. The implementation phase of the project is when the "rubber meets the road." It's during this phase that the layout is transformed from concept to reality. All resources within the new facility need to work together to ensure the project plan's goals are met. Since there is a set order in which components of the system should be installed, delivery of all products is carefully coordinated so as to arrive at the time when it is needed. Like a race car which is tuned to perform its best at each individual race track, this phase is when the system gets tuned for peak performance. Timing for the sortation systems and merges are set to maximize throughput. The pitch to be used for the carton and pallet flow racks is adjusted in order to meet the user's satisfaction. The time from establishing system goals to completion can in some cases be over a year and, on occasion, changes are requested during the implementation phase in order to meet the most current objectives. It's important to remember that all of these changes or deviations from the original plan must be well documented so that expectations for all stakeholders are managed properly. 7. Post project review. Once the project has been completed and inventory is moving smoothly in and out of the facility, a closeout meeting should be scheduled. This session will include a discussion with the implementation team as to whether the final layout was implemented as originally designed and approved, and to confirm that any changes were appropriately documented. This step is critical for future project planning. A well-planned material handling system design for a warehouse or distribution center offers multiple advantages in the fight to remain competitive and successful. By taking the necessary steps to see the project through from start to finish, the result will be a facility that operates efficiently, uses space effectively, maintains cost control, and in the end achieves its ultimate goal

of meeting expectations.

Craig Bertorello is Vice President of Operations at TriFactor, a material handling systems integrator based in Lakeland, FL. He can be contacted at 904-493-2171 or cbertorello@trifactor.com. For more information, log on to http://www.trifactor.com/

Planning a Warehouse
Make the most of a new warehouse design by making better us of cube and analyzing all aspects of handling.
Mar 1, 2002MH&L Staff

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Planning a Warehouse
Every warehouse has unique problems, but planning for a new one calls for basic decisions. Going through the planning process may help make better use of your existing space. by Leslie Wood

Space Utilization
Before putting time and effort into planning a new building, take some basic steps to increase the space available in the current warehouse. Get rid of any junk equipment that has found a home there. Use JIT deliveries and shorter runs to reduce inventories. Use racks. There are many types of racks. Become familiar with them and their applications before making any decisions. They can increase storage capacity, but they are expensive and may not gain you as much space as expected. Analyze the potential space gained and the financial benefits.

The Layout: Inventory Analysis

Arrange the warehouse to fit the nature of the inventory. If it will store large quantities of few SKUs, many deep rows are needed. If the inventory will be small quantities of many SKUs, mostly shallow rows with many faces is more practical. A simple spreadsheet analysis calculates how many rows of varying depths and how many racks are needed. From this it calculates the area needed for storage and aisles. Space for docks, offices and future expansion are not included. The analysis is based on a snapshot of current inventories, modified to include future changes. Although individual SKUs may vary from week to week, the mix of deep and shallow rows is surprisingly stable and one period can be very representative. The height pallets can be stacked depends on the weight of the product, strength of the packaging, building height, etc.

Aisles
Aisle width depends on the type of lift trucks used. Aisles should be wide enough for trucks to make a single turn into the row. Making them too narrow will save space but slow down the store-and-retrieve operations and result in greater damage. Cross aisles can reduce travel times but take up valuable space. Balance the two.

Rows
Design rows wide enough to allow drivers to carry loads in and out without causing damage. Lift trucks fitted with side shifters allow drivers to move loads a few inches from side to side so they can work in narrower rows.

Docks
The number of shipping doors needed depends on how long it takes to load and unload trailers, the number of trailers handled, and how many shifts are worked. The dock is the busiest and most dangerous part of the warehouse. Dont squeeze down the space.

Material handling
Lift trucks are the basic means of handling pallets. They come in many shapes and flavors. There are clamp trucks and fork trucks and push-pull trucks. There are

counterbalanced trucks, stand-up trucks, straddle trucks, swing mast trucks, narrow aisle trucks, very narrow aisle trucks... The list goes on and on. Work with reputable dealers. Explain your situation and let them advise you. When they recommend products (most often, their own), ask to visit sites with similar applications and request demonstrations in your own facility. If things become too confusing, hire an experienced, independent consultant to advise you. Conveyors are a common means of delivering cases of product from manufacturing to the warehouse. They are expensive to install and maintain but can be less costly to operate than drivers on lift trucks. Whether or not a conveyor system is justifiable depends on the amount of material, the composition of the inventory and the distance that the products have to be moved. Automatic guided vehicles (AGVs) are an alternative to conveyors. They are most economical when hauling product over long distances.

Software
Over the last 10 years, there has been an explosion of software available for managing warehouses. Designers promise it will reduce inventories and labor costs while improving customer service, inventory accuracy and storage capacity. What they may not say is that it can take over your operation, tying up a quarter of your workforce to satisfy its demands for more and more information. You do need a means of tracking your inventory and the software that fits your needs can bring most of the promised savings, but beware of bells and whistles that sound good. They can become a cacophony when you try to implement them.

Picking
Orderpicking is the most labor-intensive operation in the warehouse. The objective is to get the correct product to the customer in the shortest time while maintaining high productivity. Whether you are picking individual parts from cases, picking cases from a pallet or picking full pallets, specialized equipment is available. Again, work with suppliers, study the options and ask to see demonstrations.

Whatever the type of picking, making the most frequently picked SKUs the most accessible will reduce picking times. There are many more decisions that will confront you than we could cover in this article: where is the best location; should you lease or buy; do you need a central distribution center; etc. Do not become overwhelmed. Take them one at a time and they will fall into place.

About the author

Leslie Wood is the founder of Les Wood Associates (www.lwassoc.com), a North Andover, MA-based consulting firm that has provided industrial engineering services to manufacturers and warehouses since 1989. Previously, he was director of industrial engineering for Sweetheart Plastics. He has held similar positions in other industries including telecommunications, semiconductors, electronics, machine shops. Reach Les Wood at (978) 681-8705 or by e-mail: lesw@lwassoc.com.

Slotting Optimization as High-Return Project

In recessionary times, distribution and supply chain managers are looking for short payback projects to optimize their operations. Many companies are delaying implementing broader-based supply chain initiatives such as warehouse management and supply chain process management (visibility, event management, process integration) in favor of lower cost, faster return continuous improvement projects. Inventory slotting optimization is a good starting point. Slotting optimization is an execution-focused process using software with advanced algorithms to improve product-to-location assignments within the distribution center. Slotting can be undertaken on a one-time basis; however, its real power rests in its use on a continual basis either on weekly, monthly or seasonal periods. Is your company a candidate for slotting? Consider four indicators: Do burdensome replenishment volumes adversely affect your ability to complete pick waves on time, pick accurately or productively? Does travel time account for more than half of your pick/replenishment labor time?

 Are your pick rates not in line with industry best practices? Do your pick and replenishment productively levels decrease when you enter a new season? If the answer is yes to any of these questions, your facility may be a candidate for a slotting optimization project. While many of these ills can be cured using common sense and a good industrial engineer the complexities of todays distribution center operations has lead to the introduction of slotting software packages. Slotting software integrates logic for pick sequence, path and reach optimization. The solutions consider and optimize multiple storage modes, product configuration, velocity and balancing criteria. If these packages can be integrated with WMS a more powerful nearly automated slot optimization effect can be created. Slotting projects can typically return gains of 10 percent to 15 percent or more based on: Reduced golden zone reach time; Reduced travel time; Reduced stockout conditions and long replenishment cycles; Improved pick productivity; Pick line balancing; Reduced accidents through better ergonomics; Reduced product damage through reduced handling; Slot integrity. Slotting projects can typically be completed in 2-6 weeks, based on availability of data. This Two Minute Tip is by Rodney Goulet, senior consultant, eSYNC International, and Paul Maurer, partner, Streamsoft LLC. E-mail them at: rodney.goulet@esync.com andpmaurer@streamsoft.net.

http://mhlnews.com/facilities-management/planning-warehouse

Facility Planning and Design

Does your team have all the expertise it needs to plan the optimum operational concept for your facility?

Taking on a grand-scale project, such as a complete revision to your distribution center or warehouse design and layout, can be a difficult task for any individual. This is why Sedlak Management Consultants facility planning and design consultants specialize in providing the services you need to execute your facility planning and design project.

Our Facility Planning and Design Services

Strategic issues formulation and analysis Economic analysis with ROI reporting Capital estimating and budgeting RFP Development Our Facility Planning and Design Process

We begin our analysis of your facility by compiling all available data into a needs document defining appropriate sizing, layout and systems requirements for each functional area. Then we devise alternate concepts and write economic justifications for each. Ultimately, you will receive a customized-for-your-business, detailed operational plan.

You can depend on our distribution center and warehouse design and layout experience to provide you with the optimum facility plan ready for competitive bidding.

Contact Us Distribution Center and Warehouse Design and Layout

Need assistance with your distribution center or warehouse design and layout? Call us at 216206-4700 or contact one of our facility planning and design experts by using our contact form.

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