Warehouse Optimization
Improving storage density, productivity, and throughput in the warehouse
ASSIGNMENT
For a logistics/industrial organization, an assessment was conducted to identify opportunities to improve storage density, productivity, and warehouse throughput in order to support future growth.
The existing layout and operating model showed limitations in terms of scalability and operational efficiency.
Key findings
The current storage and picking methodology was not optimally aligned with the diversity of products and packaging types.
Storage density and flow represented the primary constraints for future growth.
Productivity and throughput are likely to come under pressure as volumes increase within the current setup.
The organization has not yet reached the level of process maturity required for advanced automation.
Data quality, forecasting, and the presence of slow-moving inventory limit optimal warehouse design and operational control.
Recommendations
Implement a phased improvement approach using different scenarios, with a focus on storage density, flow, and process structure.
In the short term, select a feasible and relatively simple scenario with a quick return on investment.
In parallel, focus on:
- Improving data quality and reporting
- Conducting an ABC analysis and redesigning picking locations
- Reducing slow-moving inventory
- Strengthening process-driven operations and KPI-based performance management
More complex and capital-intensive solutions should only be considered once the organization has reached a higher level of process maturity.
Results
Full visibility of four developed scenarios, including investments, savings, ROI and Spaghetti-, Flowdiagrams.
Clear, actionable pathways to increase storage capacity and support future growth.
A defined preferred direction for both the short and medium term.
A solid foundation for further optimization and future automation, while maintaining controlled risk levels.