Warehousing is a basic function that’s instrumental in the entire process of supply chain management. Although warehousing duties are basic, the efficiency in storage and distribution of goods is crucial in the generation of sales revenue and market share.
Warehousing sets the pace in rising demands and in achieving customer satisfaction. Through its functions, such as maintaining the quality, supplying the right quantity, and on-time delivery of goods, customer expectations are fulfilled. However, warehousing should play a bigger role than this.
Warehousing can contribute to better productivity, better profit margin, controlling distribution costs and better service quality. It all begins with a good choice of warehouse facility design. Here are the important considerations to make in getting the ideal design:
1. Warehouse Construction for Better Storage
The main purpose of warehousing is storage, so it’s important to achieve the kind of construction that allows the capacity appropriate to business needs. A suitable building size, parking space, and docking bays should support the expected level of operations. During construction, the facility can also be designed to be adaptable to future business requirements or expansion needs.
2. Central Location for Shorter Delivery Distance
Having a central location that allows easier access to main roads (to or from seaports and airports) and being closer to customers help support further growth, control lead-time, and reduce product risk from long distance travel. This is a strategic decision that can create more businesses and can cut a lot of costs.
3. Capital Budget and Costs
Warehousing is a capital-intensive business that would require planning which involves the operational budget, objective setting, and the required return on investment. It’s also important to consider the operational costs such as transportation, facility, storage, and labor because these take up much of warehousing revenues and lower profit margin.
4. Employ the Right Equipment and Technology
Warehouses require specific equipment and technology to accommodate the volume of shipments and monitor movements. Whether the business requires a forklift, mobile, sortation, or conveyor equipment, what’s important is that the equipment maximizes space, locates products more easily, and transports products for inbound or outbound delivery efficiently.
5. Floor Layout and Design
To meet the ideal layout and design, research on operational performance in the past and inventory expectations in the future. The optimum space utilization is achievable with a complete data on the schedule of shipment arrival and departure, quantity per shipment, the volume of shipments per day, and other relevant details. From this information, you can create a layout that facilitates the process flow within the facility and reduces bottlenecks.
It doesn’t matter whether you’re building a private, public or bonded warehouse. These five considerations are important in making an efficient warehouse, regardless of size and purpose. By considering these factors, you are achieving the warehouse facility design that brings more value to your services and allows you to profit from every delivery.