Is there a need to redesign your warehouse for better operational efficiencies? Several warning signs reveal that warehouse efficiency is deteriorating: -
- Congestion, need more space to conduct warehouse activities
- Delivery or shipping errors have increased
- Order processing time has increased
- Warehouse activity’s efficiency has decreased (items misplaced, inaccurate inventory data)
- Warehouse operating cost has increased
Does these sounds familiar in your current warehouse operation? If that is the case, you may have to seriously look into the possibility of re-design and re-layout your warehouse facility and operation.
There are many aspects you need to consider prior to re-design and re-layout your warehouse facility. Data collection and gathering is crucial that include:
A. Company policy
- Stock replenishment policy (such as just-in-time)
- Stocks keeping policy (price fluctuation, special offer, shortage)
B. Nature of business
- New business expansion or diversification plan (expand from manufacturing to retailing or trading)
- Product line expansion or diversification
C. Sales/Shipping Information
- Number of items or products shipped daily, weekly, monthly
- Products combination (low mixed but large volume or high mixed but low volume)
- Shipping patterns for daily, weekly, monthly or seasonality
- Number of customers
- Geographical locations expansion
D. Purchasing Information
- Number of items
- Number of SKUs, New packing, New cubic dimensions
- Receiving patterns (when is the peak)
E. Receiving/Put-away/Retrieval/Storage Information
- Number of items or products
- Number of SKUs
- Specifications of SKUs such as cubic dimension, weight, storage condition, turn ratio
- Throughput daily, weekly, monthly (Current and Future Projection)
- Seasonality of items or products
- Goods receiving patterns (daily, weekly, monthly)
- Number of suppliers
- Quality policy
Without good and adequate data, it is extremely difficult to include high degree of accuracy in your warehouse design and layout.