Imran AliSupply Chain – India, Middle East & Africa

Best practice in managing

Warehouse Density storage as

a tool for Lowering costs and

improving profitability

About Me:

About P&G Supply Chain

>130Plants

40Customization

Centers

65 000Employees

1.5BTruck km’s/year

250Shipping Locations

60 000External Partners

A “Good” Racking System

Meets the users requirements (storage & throughput)

Optimum between Capital Cost and Operational Cost

Is prepared for the future

RACK SELECTION CRITERIA

Cost of the Rack Type

LOT Size of each SKU

Warehouse Design

Method to load/unload trucks

Forklift Truck Type Available

Future business development

Seismic Zone or not

Capability of forklift drivers

Throughput Requirements

Standardization of Racks inside DC

Order picking or storage area

Density vs Flexibility

LOT size (# pallets in one lot)

Sto

rage

Den

sity

*(m

2/p

s)

6432164 82

0.7

0.6

0.5

0.30

0.8

0.4

Drive-in

Selective

Shuttle

Double deepVNA

1

* Excluding impact of traffic aisles, staging area’s, etc…

Push BackMovable

e.g. some F&HC and BabyCare skue.g. most BeautyCare, Gillette sku’s

1. Lot-size is the most important

decision parameter

2. It is not efficient to store sku’s

with a small lot-size in a rack

designed for a large lot-sizes, as

this leads to very low

filling/utilization rate

TIP : Start with selective racks and then justify on LOT-size and space savings if you can use a more space efficient rack type.

Standardization of Racks

1. Avoid to many different type of racks

inside a DC

a. Adds complexity for the operations

b. May require different forklifts to use

c. Reduces flexibility

2. Target to have 2 or 3 types maximum

Standardization of Forklifts

1. Reach TrucksPros: Most flexible, can operate all racks

Cons: can not work at street level

2. Counter Balance TrucksPros: Faster in use, good for outside

Cons: Limited to 7m lift height

3. Very Narrow Aisle TrucksOnly suitable for a VNA rack

The default approach is use a Reach Truck for the storage racks !!But if you already have a big fleet of forklifts, then this may drive your decision !!

This document contains proprietary, confidential and copyrighted materials of The Procter & Gamble Company (P&G).

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