Costly design mistakes are all too common in one of the biggest investments companies will make.

There has been a recent surge of enquiries for warehouse design assistance.  This is an encouraging sign as it indicates that Asian based businesses are investing in their supply chains and that they are recognizing the value of a well designed warehouse/distribution centre.

A clear design strategy is required from the outset.  An effective design will consider the often opposing needs of storage and picking functions.

In warehouses that have been designed to maximize the amount of utilized space the tendency will be to complicate the picking process.  Large open storage solutions often mean Materials Handling Equipment (MHE) running empty and traveling over greater distances therefore making picking inefficient.  This can be overcome with a Warehouse Management System and using advanced techniques, such as dual cycling, but these are often not present in a new facility.

Picking focused operations require dedicated pick faces and replenishment rules, often working against storage efficiency.  The biggest challenge implementing this type of operation is adherence to these put-away and replenishment rules.  Automation can help in a lot of areas; however it is expensive, resource intensive during planning/set-up and can take a long time to settle down after installation.

Over the years LCA consultants have visited a multitude of warehouses (often new ones!) suffering from basic design failings.  A few examples:

• The capacity of a 60,000+ pallet warehouse was reduced by 12% because roof beam lengths were a few centimeters shorter than they should have been
• High density storage capacity achieved, but access points (for handling in and out) were completely wrong – undermining both productivity and scheduling
• High value product continuously pilfered because the design had not taken into account security considerations and the movement of staff and drivers
• A fully automated storage system – excellent in the right environment by having a devastating impact on an operation picking hundreds of small orders daily

All of the above mean that the company is hit with unexpected costs, possible delays in the commissioning process, reduced capacity and poor operational performance.  Sometimes a little renovation can fix things, sometimes not.

These problems also result in the new structure starting life with a “failure” tag attached to it.  Bad for the business and the people in it!

There is good news, however.  Common design and commissioning failings will be avoided if you apply 3 basic rules to new facility:

1. Have a clear design strategy: Ensure that you design around your operational requirements while also considering the scalability and flexibility your business will need.  (Your business WILL change!)
2. Use specialist assistance in developing the design – will help you avoid a lot of pitfalls and unnecessary costs.  (Such assistance is often self funding as build costs are reduced!)
3. Don’t bring in the architect until you have your basic design.

LCA has a track record of helping our clients in the area of Warehouse Design, if you would like to know more please contact us.