storage space optimisation l


Businesses within the retail and logistics supply chain are increasingly looking to optimise their warehouse infrastructure to overcome challenges created by the difficult economic conditions during the past couple of years, says Derek Scott, sales director of DMF Projects.


Working on different levels W


ith any distribution optimisation is not simply about creating added space, but also examining the


processes and systems in place to ensure these meet the supply chain requirements of the operation. With budgets tight, there are a number of different reasons why operators are attempting to better utilise available space. Some companies are looking to reduce operating costs by consolidating their operation into a smaller number of sites, whilst others want to expand capacity to handle increased business but avoid having to move to a larger facility or open a new warehouse. A facility may clearly be under- utilised, yet the solution is not always as easy as filling shelves. For example, in a pallet warehouse, half pallets are a problem for operators and a costly item to hold because they take up a full pallet position. There is a range of options available including both fully automated and manual, but the appropriate choice is dependant on the volume of stock and the access frequency.


Identifying problems Most modern units have been


designed to have an eve height of around 10+ metres, so unless there is wall-to-wall racking there is an opportunity to increase the usable space by moving upwards. However, freeing up space or creating new working areas will often require a close look at changing or adapting processes within the facility to improve the flow and create opportunities to maximise the available productivity benefits. In many instances there is a lack of operational data, so many warehouse operators will be unaware of what is actually wrong with a facility or how best to improve utilisation. The priority is to identify problem areas and one of the best ways of doing this is to ask the warehouse staff that are working in the facility everyday. These operatives normally know what the issues are within their individual areas of responsibility, so bringing them together can help create an end-to- end understanding of how a system works, where it doesn’t and how it can be improved.


By taking this added insight and then overlaying it with details of where a business wants to be moving forward, a company will have a better idea of what is required and an effective brief to take to a supplier. A good supplier should be able to


challenge this view of the warehouse’s process based on their knowledge from visiting


hundreds of similar facilities they will use this expertise to create an appropriate


solution. By bringing in the supplier as early as possible they can provide their input at the beginning of the project to ensure a


46 ShD May 2011 www.PressOnShD.com


solution is implemented that is actually going to solve the problem and meet precise operational needs. By creating a process map that outlines problem areas, it should be possible to work closely with a supplier to identify quick gains that are lower cost and will give a faster return on investment. This should form part of a wider development project with short- and longer-term objectives to best optimise and utilise available space. By doing this there is usually an opportunity to increase the usable space by between 50 and 100%.


Utilising the space


Multi-tier picking and storage solutions offer an effective means of creating additional floor area using either mezzanine floors or racking with suspended walkways. In most floor- based warehouse operations there is an opportunity to expand vertically to add two or more additional levels, and it is even possible to double floor space without the need for a full planning application.


A change of order profiles in recent years has meant that warehouse requirements have become more space intensive in many instances, so the multi-tier approach is ideal for single item, mixed carton or pallet picking solutions. In addition, the rise of Internet shopping has created added difficulties for many traditional automated and semi automated warehouses that were not set up to handle this kind of fulfilment. This has led to this requirement being either outsourced or transferred to a separate facility at added cost. By adopting a mezzanine solution fulfilment operations can often be brought back in-house by creating a dedicated area within the facility and transferring stock to the new location. With many warehouse storage solutions there is a failure to use the area over loading docks. This dead


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