The layout and design of a warehouse, whether starting from scratch or an existing site, have a huge impact on operational performance. Yet so many companies get this wrong.
According to international supply chain and logistics consultant Mal Walker, by focusing on a few aspects major improvements can be made, boosting operations, improving productivity and saving cost.“There are a few common performance issues that impact cost and service,” he said during a recent webinar for the Logistics Bureau Group.
“In many warehouses people just go round and round in circles. This increases costs and damage.”By understanding the layout or re-layout options that suit operations best, efficiency can be achieved.
“Avoid poor product f low,” he said. “Some warehouses have operators going in all directions during the receiving, putting away, packing and dispatching. All of this wastes time and it is also unsafe. It is not always possible, but as much as possible we encourage one-way f low as this really does optimise operations.”
Another area that improves performance is reducing the number of touches of goods. “Often goods are touched anything from six to 12 times. Best practice operations only touch goods four times in total or even less.”Admitting that there was a balance to be achieved between labour and capital investment, Walker said reducing the number of times goods were touched led to major improvements.
“Getting to four touches or less can be an expensive undertaking, requiring investment in expensive material handling equipment or various forms of operations. But it can also be achieved by just changing the f low in the warehouse or even just by improved stock placement.”According to Walker placing stock in the wrong place is a common problem in the warehousing space.
“From finding fast-moving consumer goods at the back of the facility to slow-moving goods in the front, it is something I come across often.”As a rule of thumb, Walker advises the ABC method. “A is to have 10% of product, but up to 75% of the volume nearest to the picking face and dispatch. B is having 15% of products and about 15% of volume placed in a mid-range location, and then 80% of products and 10% of volume can be furthest away from the pick face or dispatch.”
He says by placing stock more optimally goods can be handled less. “An acceptable number of touches for a warehouse is anything from five to seven touches, but no more.”Just as important, said Walker, was making sure that stock locations were clear. “Valuable time can be lost trying to locate stock in a depot or warehouse. This becomes a cost. Finding stock as quickly as possible is essential for efficiency.”
While a lot can be achieved through systems, technology and other innovative solutions, Walker emphasised how much could be achieved by implementing just three easy do-it-yourself solutions. “Minimise the touching of goods, create good f low in the warehouse, and kill the overtime bug. This will improve productivity tremendously.”