So you are running your warehouse full steam ahead, trucks coming and going, over 100 trucks being tipped per hour, and yet it just doesn’t seem to be efficient.
Studies show that when the storage capacity of a warehouse surpasses an 85% utilisation level, there is a reduction in productivity levels.
Increased traffic with less space to move, congested docks, blocked aisles, potential mixing of goods in aisles; all these lead to problems that will affect your warehouse.
With the start of the last quarter of 2014, signalling the build up to Christmas retail sales, you may need to consider your layout, racking and aisle choices. Increasing storage capacity without improving overall flow is a recipe for disaster. With retailers, experiencing a constant increase in online sales, and 80% of customers signalling their preferences by being willing to wait for an extra two delivery days to save money on shipping, while 33% will wait five days, you can bet there will be a huge increase in your volume.
This will definitely impact your overall efficiency levels. How can you improve?
There are many ‘small’ steps that can be taken to improve your operational efficiency. Many of them may not be initially obvious, but in the following paragraphs, we show you some of the most effective we have encountered:-
Examine Your Operating Aisles – Depending on the type of goods you carry and the density of the racking utilized, your aisle can range from Very Narrow Aisles to Narrow Aisles to Wide Aisles. This, in turn, affects the type of trucks you use. From turret trucks , radio controlled reach trucks to full sized forklifts, this process can either be a space saver or a profit drain.
Specialised trucks are not cheap to lease and having to use a large fleet of them can eat into your profits. While it is relatively easy to move from a wide aisle solution to a narrow solution, it is not the same going in the other direction.
You need to examine the loads you handle and determine the best aisles for you. If a VNA is deployed in a sector where high flexibility is required, it becomes a logistics nightmare.
Choosing the Right Rack Systems – It is recommended that you conduct a thorough analysis to identify space utilisation techniques. From increasing the height of existing racks to choosing specific racking systems for specific goods, you can alter the racking and improve processes. The following are the pros and cons of the most commonly used racking.
- Single Deep Racking is the most commonly used racking system around the world. It allows FIFO, quick storage and retrieval can be set up as Wide aisles, Narrow aisles or very Narrow aisles.
It’s only downside is that it offers limited storage density when compared to other types.
- Double Deep Racking allows pallets to be stored 2-deep. This allows a good storage density and operational flexibility. The downside is the requirement of specialized, expensive, deep-reach electric trucks.
- Pallet Flow Through Racking – This allows storage of multiple pallets, in a way that allows FIFO rotation. The loads are loaded from the rear and retrieved from the front. The racks are equipped with rails angled downward to allow easy retrieval. The downside of these is that the racks have to be precisely calculated and constructed to work well. There is also a loss of vertical space, when you use this type of racking.
Size Of Your Facility – You probably had to buy or lease a building that didn’t fit your exact specification. You might have had an idea of the size of the distribution centre you wanted to set up, but may have ended up with what was available on the market. Before you consider buying that extra plot of land, remember the building engineers saying – “it’s more efficient and less expensive to go up, than go out”. Examine the possibility of increasing the height of your existing racking.
Preferred Storage System – In some cases, the loads you process may not require you to use a tracking system. Individual pallets spaced well apart, in designated lanes.. for loads that can be easily stacked pallets can be a better option. It is best used in buildings with low ceilings.
These are a few of the most common steps you can use to modify and improve on your warehouse efficiency.
While every warehouse will be different, by considering each of these options, their pros and cons, you can choose the system(s) that work best for you. Monarch Shelving Limited can help your firm evaluate your existing warehouse layout and design an appropriate solution. Call us today.