Fourteen tips to build a warehouse that can increase efficiency

With the outbreak of COVID-19 we believe the predicted will become even more. Along with the increase in demand comes and the need to operate more productively. We would like to share our top fourteen tips for optimising your warehouse design, warehouse storage, and warehouse layout to achieve peak performance at your facility.

1. Maximizing space 

• The first thing you need to look at is the cost of a square meter and how you can maximise each square. Any square meter that’s empty puts you at a disadvantage. 

• Secondly, how fast can you move inventory through the building. A rule of thumb is to make policies of turning over finished goods in no more than two weeks and not holding inventory for more than 90 days.

2. Implement the best technology

• When it comes to selecting the right equipment, keep in mind that this helps a lot with completing tasks quicker and several factor should be considered: 
  • Automation possibilities
  • Installation and process time, 
  • Lean manufacturing best practices

3. Location

• Selecting a location depends on where your current business’s main source lies. A number of general requirements must be kept in mind such as access to roads, ports, and airports in relation to growth possibilities, costing as well as rules and regulations. The key is to look at your objectives of the logistics facility and the purpose of having it.

• Also important to keep in mind is if you’re considering building a whole new warehouse, think about your current customer base so you don’t lose a single one in the process. 

4. Construction 

• When it comes to the construction of a warehouse the following must be kept in mind: the height of the building, plot size, service requirements and structural complexity. 

• The construction process needs to be efficient in timing and smaller design specifications need to be considered such as the warehouse level being adjacent to the road level.

5. Racking

• Many might not think the warehouse structure and racking design goes hand in hand. However, all factors of the building will affect the design of the racking system, which then impacts operational criteria such as cross docking, picking efficiency and container handling.

6. Doors

• Simple but effective. Before selecting a door type, it would be wise to consider how much operation per day it will function. The following questions should be considered: 
  • Does the door require insulation? 
  • Will heavy equipment such as forklifts be transported through the door? 
  • How much will be spent on maintenance, service and spare parts?

7. Health and Safety 

• Consider this at the top of your list. Safety factors focus on:
  • Location
  • Occupancy
  • processes 
  • potential hazards
  • fire compartments
  • smoke ventilation 
  • fire protection

• The above mentioned elements adds a significant cost to the warehouse and each of these need to be handled with careful consideration.

8. Technology 

• This is a factor that is ever changing and should be implemented to be flexible around the and inside the building. 

• There are also factors to consider in a Warehouse Management System (WMS) is the volume of goods entering and leaving the premises and the complexity of the business. 

• We advise a consultancy period in order to brainstorm and fine tune the project.

9. Automation 

• This is something that should be thought of from the start of the project such as different levels of flooring could be required and column layout and height of the facility. 

• Operational issues and performances need to be analysed like packing, assembling and production.

10. Flooring 

• Elements of the warehouse can be affected by the quality and durability of a floor. The loading on flooring is vital with goods entering and leaving the warehouse constantly. 

• Ongoing maintenance is imperative as machinery will damage flooring in the long run.

11. Forklift 

• Although a warehouse would not be designed around a forklift model, bear in mind that a number of factors will ultimately mould the forklift selection. Minimum space between aisles and turning aisles need to be considered in design.

• The size and type of the Forklift has a significant impact on the design of floor and the type of  joints within the warehouse, all of this relates to cost per square meter of the warehouse

12. Temperature Control

• The need for temperature control depends on what goods are being stored in the warehouse. Cold storage may be required for certain businesses, while others may only require a temperature control to keep temperature constant or work on specific temperature intervals.

13. Budget

• From a financial point of view, you need to evaluate your new plans. When assessing your plan financially consider the following:
  • Tax
  • Time value of money
  • Total operation costs

• Get the numbers you need to justify the project. The feasibility of major upgrades depend on the right numbers and any budget should be framed by the IRR. Manufacturers should see if it’s possible to get a positive return even with conservative numbers that can stomach anything from surprises to fires. Considerations to the IRR include location, ownership, equipment, construction, and lifespan.

• Update your plan based on your assessments – After making a financial and qualitative assessment, you are ready to draft an official master strategy for your warehouse. This should include the following items:
  • Space
  • Staff
  • Equipment
  • Processes
  • Future plans
  • Extending

• The biggest cost elements in warehouse construction are:
  • The weight of the structural steel roof.
  • Specification of the sheeting
  • Floor Specification and installation
  • Walling Specification and installation
  • Fire Protection System
  • Efficient and sustainable yard area

 14. Get the best team

• Experience – We at Struxit have over 335 years of experience between our staff members;

• Leadership – Between Hannes Wagner (CEO) Chris Truter (COO) and Dallin Pols (Executive) they have completed over 33 projects and across  710 000m2 lettable area’s warehouse space.