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My Introspective

by Laurus Nobilis
My BrainCast

Supply Chain | Warehouse Design

Relative Attributes 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: Dec 2013


   

Another way to look at technology level assessment is to look at the relative attributes of conventional versus automated. We have, starting off with lower land costs for automated as one of the advantages there because obviously automated warehousing can go up much higher to 30 or even 40 meters high.

On the other hand, the equipment costs are much higher, therefore conventional warehousing has the advantage of lower equipment costs.

When we look at productivity, in terms of staff cost particularly, then again automated has an advantage, as it does with accuracy. Also with security automated as an advantage, as it's very difficult to access goods in automated warehouses, normally only automated equipment can gain access. But also, damage tends to be a lot less in that automated equipment is much less likely to put forks through product than forklift trucks, for example.

Relative Attributes of Warehouse Design

In terms of implementation speed, flexibility, then conventional warehouses have an advantage, and similarly with the level of skill and support requirements these are often a lot lower in conventional warehouses, and therefore maybe more suitable for certain parts of the world. Again, at this point, it may just be worth considering in terms of which countries have automated warehouses, and is the answer to that driven by land or labor costs, for example.


WAREHOUSE DESIGN

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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