How to organize and layout an efficient warehouse? Explanation of key points to 6 steps of design

Optimizing layout is essential for efficient warehouse operations.

We want to increase efficiency.”
We want to increase storage efficiency.”
I don’t know how to design the best layout.”

If you are experiencing these problems, please refer to this article to design an appropriate layout. This article will explain the five benefits of reviewing the layout of your warehouse, as well as specific design procedures.

5 benefits of reorganizing and rearranging the layout of your warehouse

There are five advantages to reviewing the organization and layout of a warehouse

• Improved work efficiency
• Cost Reduction
• Prevention of mistakes and accidents
• Improved inventory accuracy
• Eliminate the hassle of changing layouts

The benefits of each are detailed below.

Improved work efficiency

Optimal warehouse layout design is effective in improving work efficiency. For example, in a study conducted by Minami Aoyama University, the distance traveled by employees changed by approximately 10% as a result of proper warehouse layout design. Reducing unnecessary work is effective not only in improving work efficiency, but also in preventing unintentional human errors and shipping mistakes.

*Reference: Optimal layout to increase work efficiency in warehouses

Cost Reduction

Proper organization and layout of the warehouse can reduce labor and administrative costs. Reducing unnecessary employee travel and processes improves work efficiency per worker. If the same amount of work can be done by fewer people, labor costs can be effectively reduced.

Effective utilization of dead space that has been missed can also increase the amount of incoming goods and delay the expansion of the warehouse. If extra space can be laid out effectively, labor and administrative costs can be reduced, and the same workload can be operated at a lower cost.

Prevention of mistakes and accidents

Designing a warehouse layout with the following three points in mind will be effective in preventing mistakes and accidents.

• Required Duties
• Employee flow lines
• Number of people entering and leaving the warehouse

Be sure to design an optimal warehouse layout to reduce errors and unexpected accidents such as late deliveries and erroneous shipments.

Improved inventory accuracy

An optimally designed warehouse layout leads to improved inventory management and inventory accuracy. An unorganized, cluttered warehouse makes it difficult to take inventory efficiently and requires extra effort to manage inventory. Inventory control is an important aspect that affects operating costs, so it should be carefully considered from the layout design stage.

Eliminate the hassle of changing layouts

Optimizing the layout of the warehouse at an early stage can be effective in reducing the time and effort required for layout changes. Be sure to design an optimal layout that carefully simulates product placement positions and flow lines, and also considers the addition of new items.

In recent years, automation of work using robots has also become important. It is essential to design the organization and layout of warehouses to create lines of movement that will facilitate the movement of not only employees but also robots in the future.

11 points to be aware of in warehouse layout

Here are 11 points to be aware of in a warehouse layout. Keep each one in mind and use them to design an optimal layout.

Ensure safety

Rather than improving work efficiency, the first priority should be to ensure safety. In a warehouse with heavy fixtures and merchandise, the unexpected can lead to serious accidents. Dangerous situations in a warehouse include, for example

Unsecured fixtures with merchandise placed directly in aisles Heavy merchandise on shelves Fixtures and merchandise blocking evacuation routes

The above are hazards that can lead to serious accidents and require an immediate review of the layout. Ensure safety with an appropriate layout and create an environment where employees can work in peace.

Measuring storage efficiency

The proper warehouse layout can be determined by measuring storage efficiency. The formula for calculating storage efficiency is as follows

Storage volume ÷ Storage area volume = Storage efficiency

A higher storage efficiency value means that more goods can be stored in less space. Conversely, a low storage efficiency value indicates that there is room for improvement in the warehouse layout. If you want to improve storage efficiency, it is recommended to use a “three-dimensional” rather than a “flat” warehouse. By fully utilizing even the tops of shelves and racks, you can expect to improve storage efficiency.

Ensure available space

Often overlooked, “free space” is important in proper layout design. When a warehouse has available space, it can be used to store new items or as a temporary storage area for items you wish to increase your inventory. To secure available space, it is effective to review the following before expanding the warehouse

Replacing fixtures and rearranging layouts to reduce dead space

Without free space, you will have no choice but to force products onto the shelves. Be careful not to overlook available space, as this can result in reduced work efficiency.

Design the work space appropriately

If the work space is too large, it will lead to space loss, and if it is too small, it will reduce work efficiency. Designing a space appropriate for the size of the work and the number of workers will ensure smooth operation and increase efficiency. Installing a printer that issues invoices near the workbench can further improve work efficiency.

Identify priority products.

Recommended storage locations by priority level are as follows

High-priority items will be more efficient if the layout emphasizes ease of retrieval. Other than that, it is recommended to design a layout that takes into account not only work efficiency but also storage efficiency.

Check the process from receipt to shipment.

A typical warehouse workflow is as follows

1. arrival of goods
2. incoming inspection
3. stock taking
4. custody
5. picking (esp. distributor picking up merchandise from a storage facility)
6. Outgoing Inspection
7. shipping

Simulating the above flow while designing the layout will reduce unnecessary movements of employees. To improve work efficiency, check the work flow from receiving to shipping in advance.

Assign locations and design

A “location” in a warehouse is a number used to indicate where goods are stored. It is like an address for the goods, so to speak. When shelves are divided into locations (numbers) one level at a time, the following effects can be expected.

• Reduction of travel distance
• Decrease in picking errors
• Improved efficiency of product management (data management)

If locations are designed to be assigned, the location of products can be pinpointed, preventing work errors and increasing efficiency.

Different layouts for different types of warehouses

Warehouses with inventory require product picking operations, so layout design should consider the balance between storage efficiency and work efficiency. For warehouses without inventory, it is desirable to design a layout that allows for easy coordination with trucks and a large work area.

Be aware of layouts that allow for a single stroke.

There are two types of flow lines that are similar to a single stroke: “I-shaped” and “U-shaped”.

The I-shape arrangement ensures that incoming and outgoing goods are not mixed up, while the U-shape arrangement facilitates smooth coordination among employees in charge of receiving and shipping.

Install steel racks in dead spaces.

Even if you think your layout is lean, there may be dead space in unexpected places. Unexpected places are, for example, gaps where large fixtures cannot fit. In such places that may later become dead space, we recommend the installation of steel racks.

Steel racks can be placed in small gaps and are expected to make effective use of dead space. They come in a variety of height sizes, so you will be able to secure a three-dimensional storage space.

Consider the balance between "storage efficiency" and "work efficiency.

In designing an appropriate layout for a warehouse, focusing solely on storage efficiency may in fact reduce operational efficiency. Measures such as stacking goods high or forcing them into some storage spaces are counterproductive.

Storing for the time being” requires time and effort to search for products, which in turn reduces work efficiency. To ensure smooth arrival and departure of products, it is important to design a layout that balances work efficiency and storage space.

6 Steps] Warehouse Layout Design Procedure

The following is a six-step process for designing a warehouse layout.

1. organize the problem

Let’s find the problems and issues by paying attention to the following points.

• Is the aisle width adequate?
• Is there an efficient flow line?
• Are there any unnecessary movements of employees?
• Is there an appropriate balance between storage efficiency and work efficiency?
• Are the products designed to be easy to locate?

If you are unable to identify problems and issues by actually seeing them, it is a good idea to interview employees to identify them.

2. clarify objectives

Possible warehouse objectives include, for example

• I want to increase the efficiency of product storage.
• I want to reduce human error.
• I want to automate work by introducing robots.

Clarity of purpose provides a clear picture of the appropriate layout of the warehouse.

3. confirm the flow of incoming and outgoing shipments

Reviewing the flow of incoming and outgoing shipments is essential to proper layout design. Here again, let us review the general flow of warehouse operations.

Receiving Receiving Inspection Shelving Storage Picking Shipping Shipping Inspection Shipping

By understanding the flow of incoming and outgoing shipments, space that should be secured or shared can be properly considered.

4. determine the overall layout

After confirming the flow of incoming and outgoing shipments, determine the overall layout according to the problems and objectives. In doing so, it is important to design a layout that has no flatness loss or height loss, and that eliminates dead space to the maximum extent possible.

Consider the flow line considering the work area and design an efficient layout. As dead ends are inefficient for work, a single-stroke layout is recommended as mentioned above.

5. determine the storage location

In order to determine appropriate storage locations, it is necessary to separate goods by priority. The method of determining the priority of goods is called “ABC analysis” in the logistics industry.

6. prepare items

Work efficiency varies depending on the storage method as well as the storage location with appropriate flow lines. Therefore, it is necessary to consider storage items that match the products handled by the company. Storage items include, for example, the following

Introduce appropriate storage items in your own warehouse to increase work efficiency.

Basic Layout Method

Finally, we review basic layout design in warehouses.

Design in I-shape

The I-shape is a layout in which the receiving and shipping processes are conducted in a straight line. The main advantages of the I-shape are as follows

• Simultaneous shipping and receiving operations
• Smaller warehouses can be stocked with more inventory.
• Difficult to confuse incoming goods with shipped goods

This layout is effective for warehouses that are small in scale and have limited working space. Recommended for warehouses with doors at both ends of the building.

Design in a U-shape

The U-shape layout uses the same entrance and exit. The main advantages of the U-shape are threefold

• Large warehouse can be used effectively.
• Smooth collaboration among employees.
• Easy to call for support because receiving and shipping are next to each other.

This layout is effective for warehouses that are large in scale and have a large work space. Recommended for warehouses with entrances and exits on the same side.

ABC analysis to determine placement

ABC analysis” is a method of analyzing products to determine their priority. By bringing Group A, which has the highest priority, to the front, an efficient layout can be designed with the shortest distance to travel. once the placement of Group A is determined, it is effective to design a layout with Group C, which is shipped infrequently, at the back of the warehouse, and Group B in between.

summary

Reorganizing and rearranging the layout of a warehouse has many benefits, such as improving operational efficiency and reducing costs. To design an appropriate warehouse layout, it is important to first sort out the problems and consider storage locations and items that meet your company’s objectives.

In addition, an increasing number of companies are choosing to build “tent warehouses” as a means of more efficient warehouse operations. A tent warehouse is a building constructed with a steel frame assembled and lined with a sheet membrane. The main advantages are as follows

• low cost
• short-term construction
• Sufficient durability and weather resistance

Tent warehouses are weather-resistant and can keep the inside of a warehouse so bright during the day that lighting is unnecessary. Many advanced manufacturers and logistics companies have introduced these warehouses, and more efficient warehouse operations can be expected.

If you are looking to commission a tent warehouse, we recommend Taiyo Kogyo Corporation, a manufacturer that has been in business for 100 years & has the No.1 market share in Japan.