5 December 2021

How to Optimize Your Warehouse Layout

5 December 2021

The Covid-19 pandemic has greatly accelerated e-commerce. This year, the online sales market has grown by 47%, the largest increase in the last 20 years. And the trend is that it will continue to advance, even with the reopening of physical stores. A survey reveals that 52% of consumers intend to use e-commerce more and visit physical stores less. The same respondents also emphasized the importance of a good shopping experience to continue purchasing the company’s products. Given this scenario, there is a significant challenge to face: adapting logistics to the specificities of online business.

Changes can no longer wait. The time to stand out is now, and this will only happen if the company is ready to offer fast and decisive delivery. Without the ideal structure, investments in e-commerce may not have the desired effect. And this is where an important factor comes into play: the warehouse layout. Has your current distribution center structure allowed for efficient logistics?

Optimizing the layout is a key point, but it should be implemented after careful study. Before implementing the necessary changes to increase efficiency, it’s essential to have a complete understanding of how you work and the main existing limitations. Once the points of improvement and unmet needs are identified, you will be able to make appropriate optimizations for your reality.

To help you, in this text we will cover some practical aspects to improve the warehouse layout and how to implement them. Take a look below:

The Importance of Warehouse Layout

The layout essentially consists of how storage areas are distributed and organized. To define it, factors such as the optimization of material flow (incoming and outgoing), the best use of space, the circulation of equipment and people, product handling, among other factors, must be considered. An ideal layout is one that allows for intelligent storage, as well as efficient movements, reduced movements and distances traveled, reduced handling of items, and high productivity in carrying out work.

In this sense, when evaluating the current warehouse layout, you should ask yourself some questions:

– What is the total area of the warehouse and how is it divided?
– Does the current distribution allow for efficient flow of people and equipment?
– What is the circulation volume of each item?
– Is there a need for better positioning of a high-circulation product?
– Is there any low-circulation product occupying a prime area in the warehouse?
– Do employees move safely?
– Are the storage areas organized?
– Is there a strategy to define the routes made during separation, that is, is there a search to reduce movements and distances traveled?
– Are there unoccupied areas (other than aisles)?

It is important to make a macro evaluation of how your product arrives, how it is stored, and how it will exit. Also examine the details of how items move within the warehouse, the height of your shelves, the width of the aisles, the weight of your loads, and your inventory turnover.

Layout Optimization in Practice

After conducting a thorough analysis, it is much easier to identify bottlenecks and seek ideal solutions. Within the process of optimizing the warehouse layout, some points need to be considered. They are:

Reduce Product Handling

It is important to calculate the number of “touches” that occur from the moment materials enter the warehouse until they exit because reducing this number is an obvious way to improve warehouse efficiency. The ideal is to seek a warehouse layout that allows for the least possible handling.

Having automation systems in place can also greatly help reduce material handling and repetitive tasks.

Prioritize Stock Rotation

If you want greater efficiency in your operations, the warehouse layout must favor stock rotation, meaning higher production products should occupy privileged areas (easily accessible – preferably on lower shelves – and near shipping), while less sold items could be further away. For this, it is necessary to analyze factors such as sales volume, seasonality, discounts, and promotions, for example.

Determining storage areas for each product group, allocating similar items close to each other, helps keep inventory organized and easy to “navigate,” allowing operators to quickly locate products and their respective storage positions. This means greater agility in the entry, handling, and separation of goods. Also in this regard, an important strategy is to have inventory defragmentation routines, a process that can be easily executed if you have a WMS system (find out more).

Know the Specifications of Each Product

Each item has specific characteristics, many of which directly influence the determination of the storage location. Some goods require special storage conditions, related to protection, temperature, humidity, light, among other requirements. Therefore, it is important to know well the specifications of each product so that the proposed layout can meet them.

Additionally, it is necessary to consider the volume of the items, as this will influence the form of storage and the type of compartment used. To make the best use of storage space, it is advisable to allocate smaller volume products in small areas and larger products in larger areas.

It is worth noting that considering inventory verticalization as a way to optimize storage space is always a good solution, but for this, it is crucial to consider the volume of each product, in order to calculate the compartments used and the arrangement of items.

Consider the Flow of People and Equipment

This is a crucial point when optimizing the layout, but it is often overlooked. In the quest to make the best use of storage space, the spaces where people and equipment will move are often left in the background. Therefore, remember: it is essential to think of a layout that makes internal movement more fluid, agile, and safe.

The separation of free areas for movement must be done intelligently. Something as simple as adjusting the aisle width, leaving it at the ideal size that facilitates the movement of people and machines, but at the same time allows the use of storage areas, can help you find up to 15% to 18% more space. Just make sure the aisles are wide enough for everyone’s safety.

In addition to considering the ideal space for movement, having systems that automate activities and coordinate stock rotation, such as the WMS, can greatly assist in organizing the internal flow.

Utilize Vertical Space

As we highlighted earlier, inventory verticalization is an effective strategy for making better use of storage space. In addition to the possibility of creating taller shelving, for which there are numerous customizable solutions, you might also consider creating a sturdy and versatile mezzanine that can add a second or third level within your facility.

Invest in Automation

If you want to make a leap in efficiency and productivity in your operation, combine layout improvement with investment in technologies that perform repetitive tasks, optimize storage space, and automate processes such as picking, shipping, and dispatch. Relying on automated guided vehicles (AGVs) can be of great help to speed up transportation within the warehouse.

Other solutions like pick-to-light, A-frame, and shuttle increase efficiency in picking and facilitate storage. There are also systems like sorters, which automatically sort orders and speed up dispatch. Finally, new developments and innovations keep appearing and come precisely to bring significant improvements that, combined with important factors like a good warehouse layout, increase internal productivity.

Efficiency and Cost Reduction

In addition to implementing the suggestions we have presented, you can make other changes that you deem necessary to bring more efficiency to your warehouse and intralogistics processes. The important thing is that they all focus on the same goal: to leave the space more organized, facilitate the flow of materials and equipment, and ensure everyone’s safety.

An optimized layout means high performance and lower costs. Mistakes and wasted time lead to expenses that could be avoided with the right business strategies, and defining the right layout is part of that.

Even if there is an expense to implement the changes, with the operation underway, it will be easy to see that, in fact, they were investments with a certain return. If you want to stand out in your market, especially in e-commerce, taking care of internal logistics is the foundation for the functioning of your plans. Bet on change and prepare for your reward!


How to Optimize Your Warehouse Layout Deagor WMS per ecommerce può aiutarti!


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