Running an efficient warehouse is one of the most critical aspects of business management. It directly affects results, as most people will shop elsewhere if the item they need is out of stock at their preferred store. Keeping accurate inventory and quickly accessing it facilitates fast turnaround times and satisfied customers.
Designing a new warehouse is an exciting and daunting task. What must leaders include to establish and maintain organizational effectiveness, employee productivity, and inventory accuracy? An effective warehouse should incorporate the following eight design options.
A custom, optimized layout
Warehouse layout determines how quickly staff can move inventory from receiving to shipping while accurately fulfilling customer orders. There are three main methods to organize the layout of the warehouse:
- U-shaped: The most common arrangement where the shipping and receiving area doors are parallel to each other at the same end of the store. The benefits of this system include sharing equipment between shipping and receiving and short walking distances for quick in and out orders.
- Figure I: This warehouse design has shipping and receiving areas at opposite ends. It requires two such loading and unloading facilities and twice as much equipment. However, it may work better for some high-end operations that handle specialized parts assembly line style.
- Figure L: In these warehouse layouts, shipping and receiving are at opposite ends but at 90° angles, with the middle of the “L” used for storage. Although it minimizes congestion, this design is more often seen in L-shaped buildings out of necessity, as it takes up the most space.
Layout of a warehouse helps determine structural needs and potentially reduce costs, so be specific.
The material of the door is also an important element. Some options include aluminum and steel — the former of which is lightweight and comparatively less expensive. However, steel it is much better at taking damagetherefore usage is a prominent determinant.
The best choice depends on the unique needs of each facility.
Storage system solutions
The right storage system solutions facilitate efficient warehouse workflow. There are two basic types of warehouse storage:
- Dynamic Storage: Best selling items that move in and out of the warehouse quickly.
- Static storage: Long-term storage of products, usually on pallets.
Managers have multiple methods to store goods. The right solution depends on the type of business or businesses being served, the typical size and type of the item, the type of equipment needed to move it (e.g. forklift), how fragile it is, and any other special handling requirements such as temperature control. Effective warehouses may use a combination of the following:
- Conventional shelves
- Pallet racks
- Carton flow racks
- Long shelf life
- Mobile Racking
- Drive-in Racking
- Cantilever Racking
- Mezzanines
- Cold storage
- Buckets
- Wire partitions
- Narrow corridors
Warehouse Management Technology
Maintaining accurate inventory and control is at the heart of warehouse management. Today’s technology enables leaders to know what is on hand, in surplus and in depletion. Many such systems operate continuously to provide real-time data at all times.
Many warehouses use various layers of management technology, including:
- Standalone WMS: These systems exist in a single warehouse using the company’s software.
- Supply Chain Execution Modules: These facilitate the flow of goods from production, transportation and delivery by integrating information from the stand-alone WMS and other parts of the supply chain such as planes, trains and delivery trucks.
- Integrated ERP: These systems tie all aspects of the warehouse business together, including accounting and management, into a financial statement that is essential for fiscal and financial functions.
Material handling equipment
The warehouse equipment looks a lot like Baby Bear’s chair. Too little promotes reliance on manual labor, slowing down delivery times and increasing accident rates. Too much creates a cluster that limits efficiency with unnecessary congestion.
Ordering material handling equipment and designing a warehouse layout must often be done in parallel. For example, it does no good to switch to a very narrow aisle design if the company’s forklifts do not clamp together.
In addition, the type of equipment ordered may depend on factors such as the type of racks used. Warehouses that frequently move heavy lumber require very different equipment than those that primarily stock lumber.
A safety mindset
Protecting the safety of workers is paramount. Accidents can lead to costly fines and compensation claims, and too many can damage a company’s reputation while affecting the bottom line.
Many warehouse accidents occur as a result of tampering one of OSHA’s ten major areas which also see the most mentions, such as:
- Forklifts
- Hazard communication
- Electrical, wiring methods
- Electrical, system design
- Floor and wall storage openings and holes
- Outputs
- Mechanical power transmission
- Respiratory protection
- Lockout/Tagout
- Portable fire extinguishers
Lighting
It’s hard to overstate the importance of lighting in warehouse design. Workers must be able to locate objects quickly and efficiently, which is much more difficult to do in dim settings. Proper lighting is also a safety precaution. If tall shelves block overhead fluorescents, does the auxiliary lighting along the aisles slack off?
Pick-to-light systems offer an innovative way to increase productivity on operator-picked items. These systems work through a series of light units mounted on shelves and shelf units that are illuminated to indicate the location and quantity of items needed.
According to Hui Shen Tan, a logistics automation solution provider with Intralogistics 4.0 Solution, such systems integrate with existing WMS quickly reduce the time it takes to fulfill an order.
Climate control and comfort
While warehouse management is primarily about the workspace, it is equally important to spend time and care on ancillary spaces that complement the functions. This need goes beyond assigning offices and conference rooms for management and team meetings.
Air conditioning management in warehouses creates many safety issues. Some areas, such as cold storage, require precise temperature control to protect goods such as certain chemical mixtures or electronic products. What about workers in such areas? Does the warehouse offer appropriate PPE, such as gloves, so they can work in such areas without harm?
In addition, ergonomics promote the longevity and health of your workforce. Warehouse workers are particularly prone to cumulative trauma disorders such as arthritis that occur when the human body is forced into unnatural postures for long periods of time. Allow sufficient space for workers to move around and take breaks. Offering on-site yoga may seem like overkill, but warehouse management can marvel at what it does for production numbers.
Finally, stories about pee bottles in Amazon warehouses created a PR nightmare. Toilets should be easily accessible to staff, located at appropriate distances from workstations and regularly cleaned and maintained. Failure to do so poses serious risks to public health and creates impossible working conditions for many.
Data analysis for continuous improvements
Even the best WMS with integrated ERP won’t help leaders improve their operations if they never schedule time to review reports. Scheduling regular times to analyze and review data is not technically a physical design choice, but it can improve operational efficiency more than moving shelves or ordering an upgraded forklift.
In addition, go beyond the data – talk to the warehouse staff. There could be reasons for production delays that management is not aware of. Small changes in daily processes can make a huge difference, and so can toxic supervisors. Something as trivial as being reprimanded for using a cell phone when an employee has a sick child can spark resentment that affects the productivity of an entire team. The upper echelons may not have a clue just by looking at the numbers.
Without workers, there is no warehouse, but more people leave bad bosses than jobs. Those who leave often they report a lack of communication and uncommunicative, secretive, or reckless behavior as an impetus for their resignation. Choose leadership roles with care and attention to interpersonal skills, not just experience.
Critical design choices for warehouse efficiency
The role of warehouses is to facilitate the efficient storage and delivery of goods from the manufacturer to the consumer. Proper design facilitates the myriad functions involved in this system, creating a healthy workplace while delighting customers.
Consider the eight elements above when making critical design choices for warehouse efficiency. A little care goes a long way, whether improving an existing structure or starting a new warehouse from scratch.
