4 essential factors you must consider when optimizing your warehouse

  • Constructor points out 4 essential factors when optimizing your warehouse

4 essential factors you must consider when optimizing your warehouse

1. Physical limits
If in spite of forecasted growth you wish to stay at your existing premises, there are a number of warehouse technologies which can increase the existing storage capacity. Here we typically talk about compact storage solutions or extending the capacity in height.

Common to these solutions is the fact that they increase the storage capacity using the same area, hereby reducing costs. These solutions require thorough analysis and reflections about availability and capacity.

2. Data quality
The quality of company data (article data and order data) are also typical areas offering a large optimization potential. If the company has excellent tools for the management of economics and production (ERP) and possibly also a warehouse management system (WMS) combined with good data discipline in these systems, then the company may obtain considerable benefits.

Information on the way articles are picked in the warehouse, plus facts about the articles themselves enable simulations to be conducted and stock to be optimized, improving the company's service level or delivery ability compared to target.

3. Degree of automation
The degree of automation in a warehouse is often a political decision within the business. It is typically made on the basis of subjective experiences or intuition and most often done in order to move the company in a certain direction. Automation can be necessary, especially if there is a very high turnover of all the articles stored in the warehouse.

The decision about the company's degree and type of automation implies that the decision is made on the basis of the actual goods' flow and order structure. It may also be the demand for ergonomics that makes this decision.

4. Capacity
If all of the above factors apply then the company must make sure that the chosen warehouse technology facilitates the expedition of orders and has the ability to handle the estimated future growth, both in terms of frequency, order structure and stock.

By means of computer simulation tools it is possible to identify bottlenecks and capacity of a proposed warehouse solution. This enables the company to make a decision based on fact and actual numbers which can support and strengthen the experience or intuition used to select processes within the warehouse.

As a Business Intelligence System, Constructor Warehouse Intelligence System is a tool for decision making targeted specifically at warehouse operations.