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by Laurus Nobilis
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Supply Chain | Warehouse Design

Seven Steps of Warehouse Design (E)

Warehouse DesignLogistics is very expensive function of every company. Warehouse is very expensive, often contributing 25% of total logistics. At same time warehouse need to provide sufficient service level to customer. Therefore, planning of warehouse design is crucial for effective and cost efficient service.


Posted: Nov 2013

Warehouses are very expensive, often contributing 25% of total logistics cost between studies in both the USA and Europe of this order and magnitude.

Most importantly of all, a key contributor to service levels, for example, warehouses must be able to cope with the sudden surges of demand in hot weather for items such as bottled water, or ice cream. It is often at these points in the year that are most important to customers.

With poor design warehouses can be an expensive bottleneck. With good design they should be an efficient operation providing high service levels to customers.

First of all, what planning horizons should be used. This covers not only the range of forecast future years that need to be examined, but also the planning levels for those years. And this will become clearer as we get on to that section.

Second question is how should the planning base be set out? I.e. how should it be presented so as to be the greatest benefit during the design process?
Next question is how do we determine the warehouse zones, and also of course, how many zones should there be?

7 Steps of Warehouse Design

Then we move on to looking at picking concepts, to answer what order picking concepts should be used.

Then looking at equipment selection, how to actually select the right equipment.
Then the layout development, and finally, how can we calculate the equipment and staffing schedules and from this, obviously the capital and operating costs of the warehouse?


7 Steps of Warehouse Design
Planning Horizons
Planning Levels
Equipment resource Levels
Day in the Warehouse
Warehouse Zones
Case Picking Methods
Warehouse Equipment Selection
Fixed and Variable Costs
Relative Attributes of Warehouse Design
Suitability for SKU Throughput Ranges
Warehouse Equipment Attributes Matrix
Final Warehouse Equipment Selection Factors

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