Seven considerations for building a successful warehouse

INTELLIGENT PALLETISING

LOCATION

INVENTORYMANAGEMENT

ORDERFORECASTING

FREQUENCYAND FORMATS

STORE FRIENDLY, SHELF READY

TRACK AND TRACE

In constructing or updating distribution centres, any efficiency gains must be seriously considered. As consumer demand increases and new challenges are created, automation is seen as the viable long-term solution. We look at seven ways to help you get the most from your operation.

In recent times, warehouse and distribution centre planning and construction has continued to evolve. Even though many companies have been under financial constraints, those with long-term strategies have still taken advantage of lower real estate costs and the availability of labour.

Technological advancements within the warehouse industry continue apace. This reflects the ongoing challenges facing operations as they seek to offer high-quality products, excellent service and rapid deliveries. These considerations are consistent throughout the food retail, fashion, parts and components, and e-commerce sectors.

In addition, however, each of these sectors has its own unique set of demands and the requirements of one warehouse can differ to those of another. For example, food retailers generally require smaller distribution centres located closer to a city. For parts and components companies, the focus is on smaller orders and high SKUs. In the fashion industry, distribution centres require greater capacity in order to stock all product lines, which results in a warehouse full of ‘loose’ cartons.

Despite these differences, new builds, upgrades and redevelopment initiatives can all benefit from the wide selection of innovative systems available. Everyone involved in the planning and design phase should be fully aware of the range of automated solutions that can optimise workflows and boost efficiency. The demands facing warehouses and distribution centres can be translated proactively into a list of building considerations. These can be consulted from the moment a project is commissioned.

1. Handling frequent deliveries and onlineorders

To remain competitive, retailers must stock a higher number of SKUs. This means they need smaller, more frequent deliveries to meet customer expectations. Keeping up with this demand requires distribution operations to build mixed pallet loads more often. However, traditional manual operations will struggle to accommodate this picking and packing challenge. Automated solutions are the ideal installation for this purpose.

These systems can handle goods fulfilment requirements of up to 15,000 different SKUs and utilise automated storage and retrieval system (AS/RS).

In addition, this is suitable for facilities that fulfil online orders for consumers typically ordering one or two units of a product. The inherent flexibility of such a solution allows it to support various retail formats, including omnichannel, and those in their infancy, such as online grocery shopping.

3. Location, location, locationLocation is another essential consideration and driven bya number of factors, including land costs. A warehouse ordistribution centre close to an urban area means that savings onfuel and transport costs can be achieved. However, choosing asite nearer to a town or city means that, inevitably, land value ishigher.

To offset this, automated systems can reduce the need for manual labour and take advantage of high-bay overhead storage space. For example, a large UK retailer has an automated distribution centre that is less than a third of the size of a manual distribution centre.

Significant transport efficiencies are also possible because pallet densities can be dramatically improved compared to a manual operation. Using sophisticated algorithms, a pallet is built based on productweight, shape, dimension and category. This results in a pallet that is built optimally, increasing the number of pallet loads per trailer. Subsequently, fewer journeys are needed and less fuel is used.

5. Inventory managementProviding store-friendly deliveries is paramount for successfuloperations. This begins with inbound goods and storage. Manual case handling relies on operators physically breaking downpallets and transporting goods either on foot or by forklift to therelevant storage location.Operators retrieve items in accordance with stock rotation.Automation removes the risks inherent within such a process,including damage to goods, or operator injury. Simultaneousretrieval and replenishment of items can be achieved safely,which eliminates waste and product damage.

7. Optimum palletisationCareful planning is required to ensure pallets are built in a logical manner. This means positioning heavier items at the bottom ofthe stack. Automation is the only method of facilitating this while accommodating constantly changing mixed pallet loads to match specific aisles.

Manual operations cannot meet all of these demands in good time. Automated sequencing processes are accurate, fast and efficient, with palletising rates of up to 700 cartons per hour achievable.

2. Inventory planningHaving the ability to forecast is also important. Automatedoperations can make the most of high-level control systems tooptimise case picking, packing and sorting. This is achievedby pooling data from software systems to increase handlingprocesses across the whole value chain.By integrating this information with transportation managementand point-of-sale data analysis, all relevant parties are betterequipped to forecast inventory demands and shortages. Theentire facility is perfectly positioned to make adjustmentsaccordingly and has flexibility to meet changes in demand.

In fashion and e-commerce, inventory is key concerning what is in stock, what customers can order online and returns handling. Less inventory in stores means more frequent deliveries for retailers.

4. Track and trace capabilitiesTrack and trace capabilities are vital for online orders in the fashion industry, which is largely due to the importance of handlingreturned items. Some companies keep customers informed of the returns process, which requires regular online updates.

Automating the entire warehouse process paves the way for increased track and trace capabilities. New technology can be used to capture detailed information about each item entering the system, such as lot numbers, product codes, dimensions and weight characteristics. This makes it much simpler to identify and recall goods from the supply chain compared to manual documentation.

6. Store-friendly deliveriesFrequently, distribution centres are challenged to build mixedpallets appropriate to a specific aisle within a store. This allowsfor rapid stock replenishment, and helps store employees to putproducts on shelves faster.

The wide range of store layouts makes the manual creation of customised pallets impossible. By combining intelligent software and robotic technology within an automated system, this process can be easily managed and executed

Is automation the answer?The unique benefits of automation to warehouses and distribution centres are hard to ignore. Designing, planning and constructing a site incorporating the principles outlined above – particularly robotic handling – can reduce operational system costs by as much as 90%. Automated solutions are effective at every stage of the goods handling process and offer significant improvements over manual operations.

About Vanderlande Vanderlande has over 60 years of experience in material handling solutions and can consult on the best way to implement automated systems from the start of a project. This ensures a solution tailored to individual requirements, lower costs and a favourable ROI.