Perhaps one of the biggest mistakes warehouse operators can make when planning new premises is to fixate too much on the hardware of racking/shelving while almost neglecting the impact of other hardware, like special handling trucks, various degrees of automation and even software, like stock forecasting programmes. Planning a new warehouse can be a highly complex task, requiring a great deal of data about the existing stored products’ dynamics, like throughput rates, sizes, fragility, etc. A good start, therefore, would be to engage with bodies like UKWA and then decide which route to take when choosing a main partner, be it a major warehouse technology provider, systems integrator or independent consultant.
In many cases the choice of racking types will be dictated by the nature of the business. The high energy costs of cold stores, for example, will emphasise the need for maximum pallet storage density and so mobile, drive-in and block stacking will often be the preferred choices. None of these three, however, offers instant 100% stock selectivity but where that is necessary then automation that incorporates integrated vertical/longitudinal transporters, conveyors and shuttles within the welded racking can prove the best choice, both for building and running costs. One dairy company which took such a route for its cold store benefited from a 30% saving on building costs compared with a store to house conventional racking. The company achieved 13,500 pallet spaces as against the nearest competitor’s 9,500 pallets. Its energy costs in an operation where energy can be 25% of total running costs were also much less per pallet stored.
One recent trend that has certainly dictated a review of warehouse design and equipment is the remorseless rise of e-commerce, where time compression techniques are paramount because online buyers want almost instant gratification through next-day deliveries. This trend has undoubtedly led to more automation, especially the kind that brings goods to pickers. A breakdown of warehouse costs will often show that labour averages 50% of total running costs, so it is important not to have staff doing too much unproductive walking. Property costs average 24% and equipment costs 9% in warehouses less than 20,000 ft2. Both of these can be kept lower if the benefits of software are realized. In particular, a good stock forecasting system can reduce inventories by 30% while maintaining the previous customer service levels, and stock holding costs can dwarf all other warehouse running costs combined.
Each ingredient in the warehouse can affect other parts substantially and so that is why a holistic approach should be taken over new, expanded or upgraded premises. One such relatively small ingredient with a disproportionately large benefit, for example, is barcode labelling on racking and shelves. When footwear supplier Airwair International opened a new distribution centre recently it engaged the labelling specialist, ASG Services, who provided a whole range of different labels, including those for upper beam levels, shelf pick indicators and aisle markers. Airwair wanted to move away from the traditional labelling colours of black letters on a yellow background to a more visually striking range of different colours which would make stock location and product picking more efficient. Airwair’s warehouse manager, Mark Ashton, says the labelling and colour identification combined with the shelving layout has made working in the warehouse much more efficient.
Many companies faced with expansion problems often choose to move to a greenfield site when careful consideration of existing handling and storage techniques could delay such a costly move for five years or more. One clothing retailer, for example, changed its handling methods from pick to trolleys in wide aisles to pick to overhead conveyors in narrow aisles and a high speed sortation conveyor. This increased space usage by 40% within the same building, all for a total cost of £1.3m. The company estimated that a move to a greenfield site would have cost £5m. Maximising space, therefore, is not just all about choosing the most appropriate racking or shelving. Another premises move preventer gathering momentum is a simple switch from wide aisle forklifts to articulated trucks which can yield up to 50% more pallet slots.
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