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Creating Effective Warehouse Layouts for Improved Product Flow 

12/10/2023by admin0Read: 3 minutes

The logistics business in Australia is a key contributor to the economy, employing over 1.2 million people and earning $131 billion in revenue alone in 2019-2020 (Source: Logistics Association of Australia, 2021).

Warehouse design is an important aspect in assuring logistics operations’ efficiency and productivity, and a well-designed warehouse may have a substantial influence on a company’s bottom line. A well-designed warehouse architecture guarantees that commodities are effectively kept, sorted, and dispersed, eventually leading to higher customer satisfaction and profitability.

In this blog, we have discussed steps to create effective warehouse layouts for improved product flow and enhanced business operations.

Importance of Efficient Warehouse Layouts

Efficient warehouse design has a huge influence on organisations of all sizes and across industries. Companies that use the correct warehouse layout can optimise their supply chain operations, cut operating expenses, and eliminate mistakes and delays in order fulfilment.

Businesses may improve inventory management, optimise picking and packing processes, and minimise order processing times by using available space and employing strategic storage solutions.

Certainly, here are five brief points highlighting the importance of efficient warehouse layouts:

1) Optimised Space Utilisation:

An effective warehouse architecture makes the most use of available space, resulting in improved storage capacity and less waste. Storage rooms that are well organised avoid clutter and provide simple access to inventory goods, boosting overall efficiency.

2) Streamlined Operations:

A well-planned layout reduces the amount of time and distance necessary for material transfer. These speed up order fulfilment and lower operational costs by streamlining the picking, packaging, and shipping processes.

3) Enhanced Safety:

A well-planned layout considers safety considerations such as clear roads, adequate signage, and clearly defined zones for diverse activities. This reduces the likelihood of accidents, creates a safer working environment, and assures compliance with occupational health and safety regulations.

4) Improved Inventory Management: 

Efficient design frequently integrates inventory item categorisation and labelling systems. This allows for more precise tracking, faster stock checks, and simpler replenishment, all while decreasing mistakes and maintaining inventory correctness.

5) Increased Productivity: 

Effective warehouse layouts lead to increased productivity by optimising the use of space and minimising travel time within the facility. This results in faster order fulfilment and smoother operations.

Steps to Effective Layout Design and Operations Optimisation

A well-organised warehouse layout reduces work pressure on the staff by minimising needless walking and physical handling. This, in turn, enhances staff morale and productivity since they can focus on value-added work rather than traversing the warehouse.

Whether you are a small e-commerce startup or an established organisation, understanding and implementing an efficient warehouse layout is an unmissable opportunity to gain a competitive edge in today’s fast-paced market.

Anitech’s experts have shared the following steps to create an effective layout design:

1) Evaluate Existing Warehouse Layout

The first step in creating an efficient warehouse design is to assess the present layout and determine its strengths and limitations.

Product flow, storage capacity, labour efficiency, and safety should all be considered in a thorough layout plan evaluation.

An evaluation may assist businesses in identifying possible areas for improvement and determining if a potentially costly full redesign is required or if simple tweaks and upgrades would produce the intended results (Supply Chain Digital, 2021).

2) Create a Warehouse Design Plan

The following phase is to develop a warehouse design plan based on a thorough examination of the product flow, storage needs, and equipment required for optimal warehouse operations.

The design concept should be based on the principles of maximising storage capacity, decreasing product handling, and minimising worker and equipment travel distance (Australian Logistics Council, 2019).

3) Optimise Product Storage

Product storage is an important part of warehouse architecture, and the storage system should be designed to suit different types of items and their individual storage requirements.

Businesses can use automated storage and retrieval systems (ASRS) to optimise vertical space and storage capacity (MHD Supply Chain Solutions, 2021).

4) Improve Warehouse Productivity

Effective warehouse design may boost efficiency dramatically by streamlining the flow of products, decreasing product handling, and lowering the distance traversed by personnel and equipment.

Conveyor systems, forklifts, and automated guided vehicles (AGVs) can help businesses increase productivity while decreasing operational expenses (Logistics & Materials Handling, 2021).

5) Ensure Worker Safety

Safety is an important consideration in warehouse design, and the layout should be planned to reduce the chance of accidents and worker injuries.

Businesses in Australia are expected to adopt worker safety measures such as providing proper lighting, ventilation, and temperature management, as well as teaching workers on the safe operation of equipment and product handling (Safe Work Australia, 2021).

Thus, effective warehouse design is crucial to optimising logistics operations and achieving productivity, cost efficiency, and ultimately boost their bottom line.

The five steps outlined in the blog can help businesses achieve an efficient and effective are house operation.

While these processes provide a foundation for good warehouse design, each warehouse operation is unique, and organisations should consider the individual demands and problems of their operations when building their warehouse layout.

Anitech’s expert consultants can assist organisations in designing a robust warehouse layout tailored to their business requirements.

Call us today at 1300 802 163 or e-mail – sales@anitechgroup.com, our team will be happy to help!

For more information, stay tuned to our website.

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