Warehouse Operational Design

warehouse opearational design

The functions performed by a warehouse logistics operation and, more importantly, HOW those functions are performed are the key elements of a warehouse operational design. Opportunities for process improvement in the existing operations are defined and evaluated. Each function, its interrelation with other functions, and how the function is directed and controlled by computer systems must be described. Changes in expected volume over a realistic planning horizon are considered.

The operational design includes all elements of space, people, systems, equipment, as well as implementation and operating costs.

Distribution Design strives for strategic improvement in its logistics operations projects, the type of improvement that creates a competitive advantage for our client. Competitive advantage comes from improvements in quality, accuracy, space utilization, timeliness, productivity, and cost. “Value-based process improvement” means if it doesn’t bring value, we won’t recommend it.

Velocity Profiling
Velocity Profiling: This is a velocity profile typical for many companies. Just 5% of the SKUs represent 60% of the lines shipped. This also means just 5% of the SKUs consume 60% of the picking labor. Conversely, the slowest moving 60% of the SKUs are less than 10% of the lines shipped.

The elements of a Warehouse Operational Design are:

  • Detailed operational review of the current operation
  • Operational data analyses
    • Velocity Profiles (lines and units)
    • Order Profiles
    • Inventory Profile
    • Receiving Profile
    • Full Case / Split Case Profile
    • Productivity Profile
  • Growth projections
  • Key Operating Volumes Chart by year
  • Recommended operational description of each function
  • Facility layout and storage structure and elevations using Computer Aided Design (CAD)
  • Systems functionality
  • Space requirements for each function by year
  • Staffing requirements for each function by year
  • Equipment requirements for each function by year
  • Facility characteristics: size, height, dock doors, sprinkler type
  • Bill of materials for all capital equipment by year
  • Cost of each component
  • Systems architecture and peripherals
  • Implementation plan: facility, systems, & equipment