Warehousing is expensive. cost of the land, building, machinery, labor and the items stored in the warehouse –consumes bulk of money How do the companies reduce this cost Maximize the operation by Streamlining the placement and picking of goods Reducing the time goods are stored in the warehouse Automating as much as possible to minimize labor costs

1. Warehouse
space
Planning
Group 05
University of Moratuwa ,Faculty of Engineering
Department of Transport &Logistics Management
2012 Batch

2. Slides Outline
• Large vs Small Warehouses
• Cost and warehouse space
• Warehouse space planning
• Basic steps
• Key factors
• Advantages
• Overall strategies
• Future outlook

3. Large warehouses vs small warehouse
Large Warehouses
• Not always a good practice
• Can store large number of
goods- But cost is high
• Space may not be utilized
• Unnecessarily long travel
time between locations –
high fuel cost, Labor cost,
Delays in loading and
unloading
Small Warehouses
• Can cause companies for
innovative thinking
• Maximum utilization
• Shorter travel time between
locations – less loading and
unloading
What is the thing that you always run out of
in a warehouse
Space

4. Cost and Warehousing space
• Warehousing is expensive. cost of the land, building,
machinery, labor and the items stored in the warehouse –
consumes bulk of money
How do the companies reduce this cost
• Maximize the operation by
1. Streamlining the placement and picking of goods
2. Reducing the time goods are stored in the warehouse
3. Automating as much as possible to minimize labor costs
• Further costs can be minimized by maximizing the space
utilization - ensuring that it is possible to store as many
items as possible in the most optimum space
Maintain
Accuracy

5. What is space Warehouse Planning?
Warehouse planning is
the process of deriving a
method of optimizing
warehouse space by
finding creative storage
solutions, Material
handling, Inventory
control, etc.

6. Basic Steps in space planning
1. Determine what is to be accomplished
2. Determine how to accomplish it
3. Determine space allowances for each element
required to accomplish the activity
4. Calculate the total space requirement

7. Two major areas that need Warehouse space planning
Receiving and
Shipping
Activities
Storage Activities

8. Selective Pallet Rack
selective pallet rack provides efficient use
of space and immediate access to every
load or pallet stored. Because it provides
the best ratio of storage capacity to
product selectivity,
Double-Deep Rack
This eliminates the need for an aisle
between two storage racks and saves up
to 65% of the available floor
space. Double deep systems require deep
reach lift trucks.
Different Racking Systems

9. Drive In Pallet Rack
Push Back Pallet Rack
Pallets are stored in lanes and rest on a
carts-on-rails system. Working from a
single aisle, pallets are stored by
“pushing back” previously placed pallets
with a new pallet on the next cart
position.
Loads are densely stored in lanes
several positions deep, and lift
equipment actually enters the rack
structure in order to store and
retrieve them
Different Racking Systems

10. Pallet Flow Rack
Pallet flow works something like a
conveyor system within the rack. Pallets
are loaded at the charge or input end and
then flow down inclined rollers to the pick
faces
Cantilever Rack Systems
Cantilever Rack is ideal for long or
bulky items such as furniture,
appliances, flooring, lumber, tubing,
textiles, and piping.
Different Racking Systems

11. Why SKU’s matter for space
• SKU’s ( stock keeping units) represent all the unique products stored in the
warehouse
• Products may have many variants based on attributes like size, color or
conditioning

12.  SKU is the most desirable level for inventory optimization
Why SKU’s matter for space

13. Advantages of warehouse space planning
• Space planning involves re-evaluating the space you
have for work and storage
• Can use advanced warehouse technologies
• Can mix storage media and a labor efficient layout
• Increases the efficiency of the space available
• Extra space can be created simply by reorganizing
what is already in place.
• Can store the whole range of material needed

14. Advantages of warehouse space planning
• Inventory can be opened up to provide additional
workspace
• Increases productivity and accuracy
• Makes items easier to find and access when needed
• Being able to store more in the same square feet of space
means being able to carry more inventory
• Cutting down on back-orders and increasing customer
satisfaction
• Making it possible for a company to expand into the space
they have

15. Overall warehouse space strategy
• Connect with warehouse customer
• Use customer business development and
sales teams
• Create project team including all
involved in touching the product to
develop warehouse strategy
• Be involved with product and equipment
planning early in the process

16. Overall warehouse space strategy
• Anticipate future warehouse products and
Applications
• Review warehouse equipment requirements
with suppliers and manufacturers
• Contact available industry expert resources

17. Future outlook
• Concept of Virtual Warehousing
• Green technological aspects
• Automated processes integrated with software

18. References
• Optimizing Warehouse space –Tim Osmulski
• http://www.trommerinc.com/warehouse-space-planning.aspx
• Warehouse IQ ( Distribute Knowledge) -
http://www.warehouseiq.com/new-warehouse-setup/
• Warehouse Management Handbook- James A. thompkins
• http://www.sec-online.co.uk/our-approach-
storage/warehouse-space-planning

19. Group Members
• 121502T
• 121436T
• 121490C
• 121503X
• 121430U
• 121431A
• 121496B
• 121462T
• 121493M