Brexit, lockdown and the opening up of the economy has resulted in many companies needing to increase warehouse space.
One option is to take what you have now and simply decide what percentage increase in space is required. A quick and easy method but one that may result in a failure to improve efficiency and save cost.
The better option is to determine the optimum operational solution for future requirements and then select or build a warehouse that will accommodate the requirement.
- Have you determined the optimum location or locations to minimise total supply chain costs?
- Have you determined what stock actually needs to be held? What stock should be disposed of and can stock levels be reduced by more responsive manufacturing or supply?
- Have you designed the flow of products around the warehouse?
- Can more effective use be made of automation? In the coming years labour costs are likely to rise, now is the time to consider how labour can be reduced.
- Can better use be made of the height of a building? Fulfilment operations tend to lend themselves to maximising the use of the height of a warehouse.
- Have you got the right storage media to make maximum use of the cube of the building whilst optimising efficiency and productivity?
- Packing is now a major activity in warehouses, have you got this process optimised?
- Do you have the right IT systems to drive the operation?
- Has sufficient consideration been given to receipt and despatch areas to minimise the risk of congestion?
- Do you have sufficient doors for receipt and despatch to keep the operation moving smoothly?
- Is the yard area and access roads adequate for any increase in vehicle traffic?
- Will the infrastructure in the area be adequate to support local economic growth?
Planning the internal solution before making a commitment to a property will significantly reduce unexpected problems or early obsolescence of the new site.