A warehouse is a centerpiece of a supply chain, where the goods or raw materials are stored, managed, and processed to the end user. Its performance is based on the efficiency of the day-to-day activities, like locating goods, navigating the aisles, and tracking the inventory.
When all the interactions are performed seamlessly 24/7, the customers get their orders as soon as possible, which benefits the company’s image of reliability. Yet when the warehouse space prevents the uninterrupted flow of activities, the time is well-spent even for minor tasks, leading to significant financial losses.
How to create a warehouse environment where every interaction is meaningful? What are the tech solutions to implement to track the workflow within? Let’s explore these vital things together.
What Is Warehouse Planning?
Warehouse planning is how its environment is organized, aiming to increase the efficiency of all the in-house activities. A properly organized layout benefits the production and distribution and their speed, maximizes the usage of the warehouse space, and prioritizes inventory safety.
An efficient warehouse functioning is only possible with properly selected software to automate all the activities within the environment. One such tech solution is SAP for warehouse management, which aims to streamline all the operations regarding warehouse performance.
SAP EWM is a key tool to use when planning the warehouse facility. Its implementation provides full visibility into the inbound and outbound activities and maintains proper communication between various supply chain components.
Another important aspect of SAP EWM is its highly integrable nature, as it can be embedded into the SAP ecosystem, and co-joint with other integral parts of the supply chain like SAP Yard Logistics, SAP Transportation Management, etc.
If you need to bring integrity and visibility into the company’s performance, don’t hesitate to ask for assistance from LeverX, SAP Global Strategic Supplier, who will provide extensive and profound insights into the matter.
What Are the Components of a Warehouse?
The structure of the warehouse depends on the type of business, and the services it offers; however, the majority share some common areas:
- Receiving space – a location inside the warehouse space that receives incoming shipments, unloads and checks the inventory. Usually, it gives access to a storage area, to avoid unnecessary movement.
- Storage area – the name suggests, the location stores the inventory upon request. It is typically located between receiving and packing spaces. Typically, it consists of pallet racks and shelving units, which should be easily accessible for quick inventory processing.
- Packing area – the location where the inventory is packaged for further shipping and delivery. The packaging areas require a topnotch level of speed and accuracy, to provide the timely delivery of goods. Such an efficiency is typically provided by full automation.
- Shipping area – the location where the orders are prepared for shipping, which is adjacent to a shipping bay. The orders are loaded onto the trucks for further distribution.
- Service area – location fully dedicated to warehouse workforce – restrooms, breakrooms, management offices, support, etc.
Depending on the business purposes, the warehouse can also include a staging area, between receiving area and storage. It provides more space to unbox the shipments, and perform quality control, check materials, etc.
How to Plan an Efficient Warehouse Layout?
- Set the aim of the warehouse – depending on the inventory to store, its amount, and size the layout may be different as well.
- Visualization – with the help of 2D or 3D visualization, create a digital prototype of a future warehouse, with all the relevant measurements. When in digital form, it is easier to do all the planning considering the space ergonomics.
- Consider safety requirements – it is important to identify and remove places and paths of potential hazards, plan safety alerts, plan the place for safety equipment, etc.
- Storage requirement – depending on the type of the warehouse, the are different storing assets – pallets, bins, stacks, or a combination of all. Proper usage of storage allows to use of the whole capacity of the warehouse effectively.
- Traffic flow testing – after all the planning, it is recommended to do all the real mapping using masking tape, bring the boxes of a relative size a carry them in between the sections, move pallets, and drive the forklifts – imagine it to be a real warehouse, and check if all the spacing is radequate and safe. The flow testing is like a dress rehearsal, if everything works fine, you can give it a go.
- Implementation of the layout.
Integration of Tech Solutions
Layout design is just a part of the deal, as the efficiency of the warehouse is also backed up by properly chosen tech solutions, which help to automate, monitor, and maintain all the activities within the warehouse. SAP EWM is the most innovative and all-embracing solution, which will recreate the structure of the warehouse and help all its parts communicate with each other.
Together with SAP TM Transportation Management and other relevant SAP solutions, it will maximize the efficiency of the warehouse functioning and the supply chain on the whole.
When in need of a highly organized and controlled warehouse structure, contact LeverX, who will guide you through all the checkpoints and help you choose the most viable solutions.
The Final Throughs
Warehouse layout planning is a complex procedure, as it is about effective and comfortable workflow. The sections of the warehouse should follow the natural flow of the inventory movement from its receiving to its further shipping. Apart from the physical planning of the warehouse, it is important to take care of the overall management of the warehouse with the help of tech solutions like SAP and its modules.
If you are considering your warehouse reorganization or need to elevate its performance, contact LeverX for further help and guidance.