Moving to a new distribution center often leads to mistakes that can be costly and inefficient.
In this video, I’ll walk you through three common pitfalls and how to avoid them, helping you ensure a smoother transition.
Stick around to the end for more resources that’ll guide you through the process.
Watch the video below!
Key Mistakes in Warehouse Design
We’re diving into warehousing and discussing three common mistakes businesses make when moving to a new distribution center. Drawing from my 26 years of experience in helping companies design and transition their warehouses, I’ve identified key pitfalls to avoid.
Premature Design Decisions
A frequent error is diving into warehouse design before fully understanding the requirements. Many companies secure land or leases and then approach us at Logistics Bureau to design their warehouse layout. This approach often leads to problems because the essential planning steps are skipped. Companies might outgrow their existing facilities and decide to upgrade, but without a detailed analysis of their needs, they might end up with a warehouse that’s either too large or too small. For example, I once encountered a situation where a company had overestimated their space needs by 70%, resulting in a warehouse significantly larger than necessary. This error underscores the importance of conducting a thorough assessment of space requirements, including footprint, height, and internal storage configurations before committing to a new facility.
Not Planning for Growth
Another common mistake is insufficient planning for future growth. While companies might account for current space needs, they often fail to consider how changes in product range, storage requirements, or operational processes will affect the warehouse. For instance, a company might plan for a 7% annual growth rate but overlook how this will impact their inventory profile, such as an increase in SKUs or a shift in storage needs from ambient to frozen. Effective planning should involve analyzing past growth trends and forecasting future needs to ensure the warehouse can accommodate changes without major modifications.
Incomplete Future Profiling
The final mistake is inadequate future profiling. This involves more than just estimating additional storage space; it’s about detailing how future changes in inventory, picking methods, and storage requirements will impact the warehouse. For example, if a company currently uses 1,000 pick locations but expects this number to double, the warehouse design needs to account for this increase. Factors like the type of picking (manual vs. automated), the number of SKUs, and storage solutions should be considered in detail. Failing to plan for these aspects can lead to costly redesigns and operational inefficiencies.
Related articles on this topic have appeared throughout our website, check them out:
- Warehouse Product Slotting: The Ultimate Guide
- Warehouse Design – Rules of Thumb… And a Checklist
- Planning a Warehouse Network and Design: Key Factors to Consider
- 10 Proven Principles for Best Warehouse Design and Operation
- A Recommended Approach to Warehouse Layout and Operational Design
Editor’s Note: The content of this post was originally published on Logistics Bureau’s website dated August 02, 2023, under the title “Avoid These 3 Common Mistakes in Warehouse Design“.
