Warehouse space

Planning

Group 05University of Moratuwa ,Faculty of EngineeringDepartment of Transport &Logistics Management2012 Batch

Slides Outline

• Large vs Small Warehouses

• Cost and warehouse space

• Warehouse space planning

• Basic steps

• Key factors

• Advantages

• Overall strategies

• Future outlook

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

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

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.

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

Two major areas that need Warehouse space planning

Receiving and Shipping Activities

Storage Activities

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

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

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

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

SKU is the most desirable level for inventory optimization

Why SKU’s matter for space

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

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

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

Overall warehouse space strategy

• Anticipate future warehouse products and Applications

• Review warehouse equipment requirements with suppliers and manufacturers

• Contact available industry expert resources

Future outlook

• Concept of Virtual Warehousing

• Green technological aspects

• Automated processes integrated with software

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

Group Members

• 121502T

• 121436T

• 121490C

• 121503X

• 121430U

• 121431A

• 121496B

• 121462T

• 121493M