But there’s another vital method many skip over — warehouse layout improvement. A warehouse that follows smart design principles, especially one that implements robotics and automation, is vital in modern supply chains. That’s because an optimized warehouse layout helps pickers and packers find items faster, package orders accurately, and get shipments out on time.
On the other hand, a warehouse that lacks logical design and uses space inefficiently slows down and confuses pickers and packers, making it hard for them to do their job well. Ultimately, a bad layout increases errors, decreases performance, lowers brand reputation, and decreases the overall bottom line, making it hard for brands to remain competitive.
Read on to learn how warehouse layout optimization works.
Assessing current warehouse operations
The first step to optimizing warehouse space is assessing current operations. This involves analyzing throughput and workflow, and understanding product characteristics.
Analyzing throughput and workflow
First, you need to evaluate existing processes to identify bottlenecks and inefficiencies. Look for areas where work is not progressing and causing significant waiting times. You should also use data analytics to identify and monitor rates throughout the warehouse workflow process, especially order fulfillment and error rates.
Understanding product characteristics
Next, you must understand warehouse product characteristics. Conducting an ABC analysis can help you classify inventory based on size, weight, fragility, expiry date, temperature sensitivity, and turnover rates. Implementing stock keeping units (SKU) profiling to determine optimal storage locations will also help.
Designing the warehouse layout
After assessing current warehouse operations, you’ll have the information to design a smart warehouse layout that improves workflow, optimizes storage capacity, and supports efficient order fulfillment.
Here’s what you need to know to design a smart warehouse layout.
Space utilization strategies
Effective and efficient use of space is the foundation of a well-designed warehouse.
Maximizing vertical space is one of the best ways to use space efficiently. You can do this by installing tall storage systems and using appropriate material handling equipment, such as forklifts, to allow your team access to products stored at higher levels safely.
Another option is to use adjustable racking and shelving systems. These flexible solutions can fit different product sizes, helping you maximize your available space.
Logical product placement
Organizing warehouse products in a logical manner can make it easier and faster for pickers to find objects. Warehouse management systems can help—like Logiwa’s directed putaway, which offers a smart approach to product storage.
For example, placing high-demand items closer to packing and shipping areas can reduce worker travel time. This, in turn, speeds up order fulfillment. Similarly, grouping frequently ordered items allows pickers to get multiple items in a single trip instead of constantly moving back and forth.
Implementing efficient aisle designs
Thoughtful aisle designs can make product storage and picking safer and faster.
Narrow aisles can increase storage density, allowing you to store more products without renting a new location. However, the aisles need to remain wide enough for pickers and equipment to navigate safely.
Additionally, you should incorporate one-way traffic flow throughout the warehouse. This policy would make movement safer and easier.
Integrating robotics and automation
After designing a smart warehouse layout, the next step is integrating robotics and automation to maximize visibility into trends and productivity. Here are some popular technologies for warehouse productivity improvement.
Automated storage and retrieval systems
Automated storage and retrieval systems (AS/RS) are robot- and computer-aided systems that can retrieve items and put them in flexible locations in a shelving or grid system. You can use them to bring items directly to pickers.
AS/RS can deliver high productivity rates and significantly reduce manual labor and picker travel distances. However, they tend to be expensive.
Autonomous mobile robots
Autonomous mobile robots (AMRs) use sensors to move around the warehouse without human assistance. You can minimize human movement by deploying AMRs to transport goods within the warehouse.
A notable AMR user is Amazon, which uses over 750,000 robots for tasks like transporting packages and sorting items.
Goods-to-person systems
Goods-to-person (GTP) systems can also significantly reduce walking time by bringing goods to stationary pickers.
Case in point: John Lewis, a British department store chain, adopted 60 autonomous robots to boost picking and packing efficiency. This ultimately improved storage capacity by 75 percent.
Implementing forward pick areas
Another way to boost efficiency is to implement forward pick areas. These warehouse sections store frequently ordered items so they can be picked and shipped quickly. Here’s what you need to know to implement forward pick areas.
Designing forward pick zones
Designing forward pick zones involves creating dedicated areas for high-velocity items. This will make accessing items more streamlined. To maintain optimal stock levels, you also need to ensure these zones are regularly replenished.
Benefits of forward picking
Forward picking reduces picker travel time by concentrating fast-moving items in accessible areas. It also enhances order-fulfillment speed and accuracy.
Leveraging technology for continuous improvement
After implementing the steps above, ensure your warehouse layout and processes continuously improve. You can do this by leveraging warehouse management systems and real-time data analytics.
Warehouse management systems
WMS software helps companies control and monitor daily warehouse operations, such as inventory levels, workflows, and storage locations. By storing and analyzing WMS data, you will have an easier time making informed decisions about layout adjustments.
Real-time data analytics
Analytics tools empower you to use WMS data to make real-time inventory decisions. Specifically, you can use them to track key performance indicators (KPIs), including order processing times and picker productivity. You can then use these insights to identify areas for improvement and implement changes promptly.
Ensuring flexibility and scalability
Designing a smart warehouse layout isn’t a one-time task. You must be prepared to adapt to ensure your warehouse remains optimized for growth. That’s why it’s important to bake flexibility and scalability into your warehouse layout and robotics systems.
Here’s what you need to do to ensure flexibility and scalability.
Incorporating modular design principles
Incorporating modular design principles allows you to build adaptable storage solutions that can be easily adjusted as order volumes or product lines change. Modular design also helps you plan for future growth by making it easier to expand your layout without requiring a major redesign.
Embracing technological advancements
Keeping up with new technological advances will be crucial as warehouses increasingly digitalize.
You can identify tools that boost your warehouse operations by tuning into newsletters and influencers who talk about innovations like robotics, AI-powered solutions, and automated picking systems.
Equally important is investing in scalable technologies — systems that can evolve with the warehouse’s needs. These solutions can streamline existing warehouse processes and help you handle increased demand, making your operations efficient and competitive.
Conclusion
An optimized warehouse layout doesn’t just make the workplace safer and more aesthetically pleasing — it’s also vital to boosting overall efficiency, reducing costs, and increasing your bottom line.
A smart warehouse design combined with automation technologies minimizes picker travel times, streamlines retrieval and picking processes, minimizes order errors, and supports accurate, timely order fulfillment.
As modern supply chains increasingly demand speed and precision, companies should adopt a holistic approach that combines smart design with automation technologies to achieve operational excellence.
Curious to see how Logiwa can help you achieve optimal warehouse efficiency? Request a Logiwa demo today.
