Warehouse Layout Optimization & Inventory Efficiency Enhancement
Project Info:
This project was executed for a newly built A-class warehouse facility with a 15-meter ceiling height and a 12-meter-high shelving system. The objective was to restructure the warehouse layout, optimize storage utilization, enhance picking efficiency, and improve replenishment workflows across three primary storage zones:
Chilled food storage
Dry food storage
Dry non-food storage
Challenge:
Suboptimal shelf sizing resulted in inefficient utilization of warehouse storage capacity.
Unstructured replenishment processes led to excessive reach truck travel distances and delays in restocking picking shelves.
Inefficient SKU placement increased order picking times, causing delays in fulfilment.
Non-optimized picking sequence issues resulted in product damage, as heavy SKUs were placed on top of fragile SKUs, causing waste and inventory losses.
Solution:
Performed a warehouse layout analysis, assessing shelf height vs. pallet heights and weights to redesign storage slots for full and half-pallet configurations.
Implemented an ABC & inventory turnover analysis to prioritize high-frequency SKUs in optimized picking locations.
Redesigned the picking process, ensuring that:
High-velocity SKUs were placed near picking areas for faster access.
SKUs frequently ordered together were stored adjacently.
Fragile SKUs were picked last to prevent damage.
Optimized warehouse racking configurations, increasing storage capacity by adjusting shelf slot heights.
Streamlined replenishment workflows, ensuring that picking shelves were restocked directly from upper storage shelves rather than across zones.
Optimized picking paths based on distance analysis, reducing unnecessary travel for warehouse operators.
Result:
- Picker walking distance reduced by 28%, from 12.5 km per day to 9 km.
- Chilled storage capacity increased by 18%, and dry storage capacity increased by 14%.
- Replenishment time reduced by 22%, accelerating inventory availability for order fulfilment.
- Order fulfilment time improved by 30%, significantly increasing operational throughput.
- Reduced product damage and inventory waste through optimized picking sequences and storage configurations.
By reengineering warehouse layout and inventory management processes, the company significantly enhanced storage efficiency, picking accuracy, and overall supply chain productivity.