Steps in planning your warehouse or distribution centre-Part 2

A distribution center may be a company's largest capital investment,  it's important  the planning is done  accurately and correctly. Thus to achieve this objective, the following steps  are  :

1. Setting goals and objectives. They can be defined as reducing warehousing operating costs, improving  picking activity and  faster deliverance of products to  customers. Or ultimately to  maximize capacity , better  efficiency in resources  and  accommodating future warehouse  expansion or changes in products/process  flow.

2. Information and data collection.  Whether  is a  new facility or using existing warehouse space, make sure the building constraint(column sizes, dock location, ceiling height etc ) to be addressed appropriately  ,don't let any building constraints to  restrict process flow design.  The product information pertaining to the number of stock keeping units (SKUs) to be stored and picked within the facility, along with their dimensional measurements, weights, order history, and velocity data

3. Process analysis. After the  information about the building and the inventory has been collected, a thorough analysis should include the following queries:

• How  is the  process flow from inbound till outbound ?
• Does the inbound storage/racking has sufficient space to accommodate increment in volume ? Any space for buffering 
• What type of conveying eequipment  , identification  method  and sorting equipment to be used?
• What level of  the warehouse control system to be used ?
• Any outlay for future expansion?

If the above analysis conform with the requirement set, a detailed project plan can be developed. Else, the management will need to review a new requirement in term of  resetting a new goals and objectives.

4. Create a detailed project plan. Task list to be created  on schedule planning , designing , equipment sourcing , discussion with partners , commissioning and handling over. Not forgetting the maintenance and service support. 

5.Project review. The implementation phase of the project is crucial as this will counter check the original goals and objectives are met and realised .Changes are required during the implementation phase in order to meet the most current demand . It's important to remember that all of these changes or deviations from the original plan must be well documented so that expectations for all stakeholders are managed properly.

6. Post project review. Once the project has been completed and products flow  is moving smoothly in and out of the facility, a final meeting should be conducted.  This session will include a discussion with the implementation team as to whether the final layout was implemented as originally designed and approved, and to confirm that any changes were appropriately documented. This step is critical for future project planning.