The traditional warehouse listing leaves prospective tenants to answer the question: what is the capacity of this large building? We advocate including a storage proof of concept in the listing to expedite approval by the buyer. Learn how we can do this for you here
Step 1: Input
3DC requires a few known inputs to generate a storage design.
Step 2: Run
The inputs generate a 3D view of the storage within the building constraints. The report includes data about storage capacity.
Step 3: Export to CAD
With one click, 3DC uses the storage data to generate a CAD file.
Step 4: Publish
The upgraded real estate listing expedites lease approval.
What’s the best shape for a storage footprint? Of all the options, why does a width-to-depth ratio of 2-to-1 beat them all? The answer is travel distance.
What is the Average Travel Distance?
We establish the start and stop points for an average one-way trip. Since product storage could be anywhere, the travel start/stop within the storage system is at the center point. The center point is one-half the storage depth. We enter or exit the storage system either to or from right or left of center. The midpoint for the second stop/start point is then one quarter of the storage width.
The Mathematical Function
The formula for average travel is one half the storage depth plus one quarter the storage width. Our task is to minimize the function noted as 1/2 Depth + 1/4 Width. We want to find the storage width and depth that yield the shortest travel distance.
Do the Math
We use an example of a 20,000 square foot storage area, or its equivalent metric measurement of 1,900 square meters. As we vary the ratio of width and depth while maintaining the square footage, we create a curve that shows where the minimum travel distance occurs.
How Can We Use This?
The lesson learned is to pay attention to the shape of the storage area. Obviously, the best time to have this knowledge is before selecting a warehouse. The picture below explains the data dynamics for this post. For shorter travel distance, a wide and shallow footprint is better than a deep and narrow footprint.
Making change to a warehouse requires a business case. Financial justification takes the form of either higher revenue or lower costs. Examples of change include the following:
Technology related to systems or automation
Material handling equipment
Storage strategy
Other changes
Material Flows
A business case involves measuring and improving the value of material flows:
A complete assessment for warehouse design includes three cost factors that interact to deliver value: Space, Labor, and Equipment.
Space
Inventory analysis reveals appropriate storage solutions, including floor storage, standard rack, and deep rack. Space includes aisle widths for accessing storage and for traveling within the system.
Labor
Material handling labor contributes the highest cost. The cost can be offset by automation assuming there is a business case.
Equipment
Material handling equipment (MHE) includes mobile equipment like pallet jacks and forklifts, in addition to fixed placements of conveyor, rotating carousels and other equipment.
To find the right design solution understand how space, labor, and equipment work together.
The warehouse layout design challenge can occur before or after securing a building.
Design for the Inventory
Designing for inventory is “unconstrained”. Design the best storage solution that meets inventory requirements. Explore deep rack for high-volume SKUs. Leverage high-bay storage to take advantage of a high ceiling.
Design for the Building
When the four walls and ceiling of an existing building constrain the storage design, work within the building “box”. Maximize storage row capacity with half-bay extensions when needed. Flex the flue width between the back-to-back storage rows and keep the aisles as narrow as possible give material handling specifications.
Warehouse real estate listings typically don’t include pallet capacity. Yet the new tenant needs some idea of whether the warehouse will work for the inventory. Including pallet capacity in the listing can overcome inertia since the prospective tenant now has valuable information for decision-making.
Analyze inventory. Use inventory volume, velocity, and policies to set the best storage strategy for the inventory.
Apply growth. The business is growing and the warehouse needs to scale with growth. Create a design that accommodates growth.
Add spaces. While storage typically consumes the most space, critical work is done on the dock, in staging areas, and other value added spaces. Create the full building design.
Find a building. Look for the best building on market within the geography. The best building is the one that best suits the design.
The new warehouse risks being either too small or too large. If it’s too small, expect higher costs from congestion or off-site storage. If it’s too large, expect higher costs from excess rent, yes, but unnecessarily long travel distances can create larger hidden costs in terms of productivity and service cycle time.
Standard practice dictates placing storage rows perpendicular to the dock wall. The configuration allows for safe, efficient travel from dock staging into the storage system, and gives supervisors better visibility to the facility. It’s practical feng shui.
Why do rows perpendicular to the dock wall make sense?
Safety
Visibility to the dock allows material handlers safer travel, while managers can “walk the dock” with the visibility needed to supervise the entire operation.
Productivity
The streamlined travel paths are shorter, allowing for more productive travel and speedier order fulfillment cycle time.
