Warehouse Layout & Pick Area Design
Warehouse capacity and worker productivity depends heavily on an efficient layout and pick area organization. By maximizing cubic utilization and ensuring that row length is designed based on sales volume for each item, you can often delay warehouse expansion just by improving the current layout.
Pick area design is crucial to optimizing productivity. 70% of pick time is spent looking for the product and travel time. Implementing a compact pick area and utilizing appropriate pallet and case flow racks can often increase cases picked per hour by more than 50%.
Case Flow Racks over Pick Pallets
Picking Methods
Another opportunity to increase output is using walkie riders instead of forklift trucks for picking. Many operations average 250 cases/hour and above after converting to walkie riders which can carry 2 GMA pallets or 3 AB/Miller pallets.
Walkie Rider with 96" Forks
Warehouse Guidelines
Warehouse Design/Layout Considerations
There are a number of guidelines which should be considered to improve warehouse capacity utilization and worker productivity. The list below contains several of the items included in our facility evaluation.
SKU Reduction Opportunities
1. Any SKU selling less than a pallet per month is a candidate for reduction analysis.
2. Low volume SKU’s increase operating cost and complexity.
Floor Utilization
1. Only one SKU per row.
2. Warehouse should be a mixture of long, medium and short rows tailored to SKU mix.
3. Many long rows with only a few pallets in them is a warning that re-layout is required.
4. Excessive overage product may be caused by a non optimal layout.
5. Pallets should be stored with 40 inch dimension facing the aisle to make rows interchangeable for storage.
6. A bare wall next to an aisle is an opportunity to add more row facings and increase utilization.
Cube Utilization
1. Look for any major area where 1/3 or more of cube is unutilized.
2. Ensure recommended stacking heights are used (i.e. 2, 3, or 4 pallets high).
3. Racks are particularly useful for low volume SKU’s.
Warehouse Organization & Cleanliness
1. Non beer related items should not be stored in main warehouse area.
2. Items stored properly and a clean warehouse are indicative of a well run operation.
3. Pushing pallets causes floor and pallet damage and increases product and forklift damage.
Pick Area Layout
1. Like package types together.
2. Centralized versus picking whole warehouse.
3. Utilize racks for all but high volume SKU’s.
4. Pick sheet should be in same order as pick area.
5. No U-shaped pick areas.
6. Do not place all high volume SKU’s in one area to avoid congestion.
Loading/Picking Productivity
1. Best of class productivity exceeds 275 cases picked per hour.
2. Walkie Riders are more efficient than fork lift trucks for picking.
3. Putting cases on back of forklift indicates inefficient pick area layout.
4. Door openings to warehouse and loading area should be 12 feet minimum.
Delivery Productivity
1. Double handling of cases can be caused by incorrect picking procedures or too many SKU’s.
2. Stack same SKU cases vertically on side loaders unless picked to order or a full pallet.
3. Orders greater than 50 cases are an opportunity for bulk delivery.
Security
1. Access to warehouse storage areas should be controlled.
2. Ability to close off repack when workers are not present.
3. Employee cars should not be parked within security fence or near loaded trucks.