Design Approach

The overall approach to a good warehouse design is heavily impacted by the collection of data, the understanding of business issues, and the development of concepts

Data Collection

The relevant data related to the redesigning of the facility is required. How many SKU’s should be there and how much will it expand in the future? One should know size weight, shape and other specifications of the product that has to be stored. How many pick face locations? Is expansion or acquisition possible in the future? All other relevant information relating to receiving, shipping and storage characteristics should be collected.

Inventory Turns

It’s important to find out the nature of the inventory. Are they fast moving or slow selling products. How often they have to be dispatched? Do they need refrigerated storage, frozen storage, low humidity storage? Can they be stored outdoors, etc.?

Receiving and Shipping

A manager needs to know the number and type of receipts for receiving and shipping. Are there multiple SKU’s per shipment or a lot of parcel shipments?

Customer location and service

How many shipments have to be dispatched on an average day, on a peak day, on a typical day? Where are the customers and how many are being served?

Receive-from vendors and locations

How many receive-from vendors and received –from locations a company has? This determines how much inbound staging area and how many truck docks will be required.

Operational costs and assumptions

It is important to consider one’s own budget before making changes in the layout. If the company makes profits by spending money on the layout, only then one should start the process.