Warehouse Design Module
Warwick University – MSc Logistics
Agenda
Warehouse Design Module 2
Course Sections
1. Introduction
2. Warehouse Design Overview
3. Data Analysis
4. Warehouse Design Options – Racking
5. Warehouse Design Options – Shelving
6. Warehouse Design – Material Handling
Equipment (MHE)
7. Case Study
8. Questions
• Qualifications
• MSc Industrial Logistics (Supply Chain
Management)
• Chartered Member of the Institute of
Logistics and Transport CMILT
Overview
• Tony is an experienced supply chain
professional specialising in warehouse and
logistics solution design. Experience
includes, warehouse and operations design,
simulation, labour planning and modelling,
facility design, and logistics network analysis.
Experience of specifying and
implementation of Warehouse Management
Systems.
Key Skills
Warehouse Design & Layout, Warehouse Simulation and Modelling, Warehouse Automation Design and Specification, Stock
Profiling and Storage equipment design, Project Management, Warehouse Management Systems Specification and
Implementation
Key Companies
Rolls-Royce Aerospace, Specsavers, Great Bear, Clipper Logistics, Princes Foods, Mondelez, AS Watson, Reckitt Benkiser,
Polypipe, DHL, Ceva, Yusen, NFT, Delhaize, Superdry, Boots, Virgin Media, Wolseley, Homebase, Sainsburys, GM, Peugeot
Experience
• Warehouse Design | Over 30 years warehouse design experience having worked with most of the major 3rd Party
Logistics providers across the world. Trained user of AutoCAD and has expert knowledge of all types of storage media
and warehouse equipment and operationally astute.
• Warehouse Automation | Design Engineer responsible for various Automation and Integration projects, systems include
ASRS, AGV’s, conveyors, pick to light systems, sorters, goods to man solutions, WCS and WMS.
• Project Management | Consultant role for Virgin Media managing the operational process design and mapping and then
configuration of Red Prairie WMS. The scope included the planning of the stock transition and warehouse design from
multiple remote sites into a National Distribution Centre. Project managed the physical stock transfer, the design and
fit out of the new DC, planned the recruitment programme and the go live of the WMS. This was a 9-month contract –
the new DC was 250,000 sq. ft including racked and shelving areas and designed to comply with stringent security
requirements.
• Resource Modelling | Qualified as an Industrial Engineer and expert user of simulation tools used to develop resource
models to calculate Labour, MHE and Equipment capacity requirements to meet varying activity levels and to model the
effects of seasonality.
• Logistics Network Design | using network modelling and centre of gravity software has developed logistics strategies
using both financial and pragmatic assessment of network options numerous companies.
• B&Q | Redesign of 600,000 sq. ft. part automated warehouse . Including ASRS, Automated Crane Storage System, Zone
to Zone conveyor systems, Voice Picking System and Radio Shuttle Car storage solutions. Design included WCS
specification, pick stations, layout and process evaluation.
1. Introduction Tony Hughes
• Logistics Consultant – Self Employed Business Owner
Warehouse Design Module
1. Introduction
Module Objective
• To provide a high level understanding of the basic principles of warehouse design.
• Basic concept of data collection, validation, collation and analysis.
• Definition of the warehouse.
• Evaluation of concepts
• Final Design
Warehouse Design Module 4
2. Warehouse Design Overview
Warehouse Design Module 5
▪ Whilst every project is different and requirements may slightly vary, the approach to develop an optimised process remains
broadly consistent any warehouse design process, and consists of six steps:
▪ Data profiling allows us to understand your data but more importantly, supports sign off to ensure that the data is
complete, without duplicates and representative of the activities to include in the solution design.
▪ Product flows and routes are mapped and clarified in order to inform the modeling. Each physical movement becomes an
element within the simulations. This means we will need observe the operations and discuss the processes and activities
with the team.
▪ Data profiling and baseline models require sign-off before we progress to the design stage.
•Review & re-confirm
objectives
•Establish project
team and governance
•Confirm Data
Requirements
•Agree activity
schedule & support
required
Kick Off
Meeting
•Volumes
•Frequencies
•SKUs
•Customers
•KPIs
•Routes
Data Collection •Understanding
•Evaluation
•Summarising
•Mapping
•Assumptions
•SIGN OFF
Data Profiling
•Processes
•Data Mapping
•Further Questions
•Assumptions
•Baseline model
development
•SIGN OFF
Baseline
Establishment
•Modelling
•Review
•Sensitivity Testing
•Draft output
Options
Development
•Report
•Recommend
•Refine
•Sign-off
Recommendation •Develop Design
•Support Change
Management
•Validate &
Review
Implementation
2. Warehouse Design Overview
Warehouse Design Module 6
Role of the warehouse Storage vs Processing
• More, smaller transactions
• Handle and store more items
• Offer more Value-Added activities
• Process more returns
• In less time with less errors
• With less skilled workforce
• With more WMS capability
2. Warehouse Design Overview
Warehouse Design Module 7
The Solution Design Objective Functions
Typically required due to the following
reasons:
• New Customer
• Change in current operations
• Increased volumes
• Change in order types
• Increased SKU range
• Relocation to a new site
• New service offering
• Ecom
• Click and Collect

3. Warehouse Design Data Analysis
Data Collection
Warehouse data :
• Name of Site / Address
• Drawings if available – AutoCAD preferred
• Site operating times
• Site security / traffic routes / parking areas
Warehouse Design Module 8
Item master file
• SKU Code
• SKU description
• SKU Category / product group
• SKU dims – units / case / pallet
• Quantity per case / pallet
• Weight per case / pallet
• Ti Hi information – quantity per level, number of
levels per pallet
3. Warehouse Design Data Analysis
Data Collection
Inventory reports – one off
report (Snapshot) – 12 months
• By location :
• SKU
• Quantity of units – in single units /
cases
Locations report
• A full listing extracted from the WMS
to identify all locations in the
warehouse
• By type – e.g. shelf, pallet, etc
• By zone
Warehouse Design Module 9
3. Warehouse Design Data Analysis
Data Collection
Warehouse Design Module 10
Order data (12 months data preferred)
• Customer name / code
• Order number
• Order type (Next day – 2 day – stock order, etc)
• SKU
• Quantity
• Typical order analysis – by order type
• Number of Single SKU orders
3. Warehouse Design Data Analysis
Data Collection
0
10
20
30
40
50
60
70
80
90
100
Receiving report (12 months data) Inbound Vehicle Analysis
• Date / Time
• Number of vehicles
• Load sizes
• Items on each vehicle
Despatch report (12 months data)
• Same details as above but showing load type
• Parcels / Full pallet loads / Stock Orders, etc…
Warehouse Design Module
Personnel
• Number of employees per shift, buy function to
include management / supervision
KPI list
• List by function of the standard task rate
MHE listing
• Full list of all MHE by type
WMS
• Functionality checklist
3. Warehouse Design Data Analysis
• Data Collection
FTE Breakdown by Function AM Shift PM Shift Night Shift
Function
Receiving 17 20 4
Quality 12 14 7
Replenishment 25 30 4
Admin 7 8 4
Bulk Replen 8 9 4
Inventory 6 6 6
Value Add 4 4 2
Order Release 6 7 3
Loading totes onto conveyor 2 2 1
Despatch UK + EU 40 48 24
Despatch Intl 20 24 12
Packing 40 48 24
Non Productive 20 24 12
Picking 80 120 50
287 364 157
Warehouse Design Module
Site Visit
• Verify the layout – check the racks / shelfs is consistent
• Establish what tasks are performed where – understand
the flows
• Confirm what tasks are performed at what times
• Confirm service levels by order type i.e. 6pm cut off for
next day deliveries – pick completion by time
• Verify data – challenge gaps
3. Warehouse Design Data Analysis
• Data Collection
Warehouse Design Module
So what data do we need as a basis for
design?
• Regarding the product, we need good quality data
about:
• Product Characteristics
• Product Sizes
• Stock Levels
• Throughput
• Order Patterns
• Special Requirements
Product Data – Full List of the items
to be stored:
• Characteristics – flammable, chilled, fragile,
valuable…
• Case sizes (L x W x H)
• Part numbers & descriptions
• Item weights / pallet load weights
• Pallet load size (L x W x H) – see next slide
• Items / cases / sacks / totes per unit load
3. Warehouse Design Data Analysis
• Data Collection
Warehouse Design Module
• Cartons, boxes, sacks, bags
• Pallets, cages, stillages, roll cages
• Tote bins, trays
• IBCs, tanks, bag in box, large bags
3. Warehouse Design Data Analysis
Handling units
Warehouse Design Module
Stock Holding Analysis we need stockholding levels, in
total and by individual product line (SKU), i.e. :
• Maximum stock
• Minimum stock
• Average stock
Taking account also of:
• Seasonality (over 12 months)
• Forward Projections (future years)
2. Warehouse Design Data Analysis
• Data Collection
Warehouse Design Module
The basic throughput data required are:
• Pallets / cases / items / units per day or week
• Maximum, minimum and average quantities
• Seasonality
• FIFO?
• Shelf Life?
• Special handling?
• Don’t forget product returns (often a big feature for some
operations in B2C)
3. Warehouse Design Data Analysis
• Data Collection
Warehouse Design Module
Order Patterns
• Service level – delivery time, product availability
• Lead times and ‘cut offs’
• Orders per shift per day or per week
• Lines per order (averages and ranges)
• Cases or items per line
• Maximum, minimum and average activity levels
• Seasonality demands
3. Warehouse Design Data Analysis
• Data Collection
Warehouse Design Module
ABC – Pareto Analysis
3. Warehouse Design Data Analysis
• Data Analysis – ABC Pareto Analysis – The 80-20 Rule: “The Law of the Vital Few & The Trivial Many”
Logic
• The pareto 80:20 rule is based on the
logic that for many events, roughly
80% of the effects come from 20% of
the causes. In the case of a
warehouse this logic is applied
typically to picking analysis. In the
example above 20% of the SKU’s
accounts for 80% of the pick lines –
these are classified as the “A” items.
Warehouse Design Module
Projections
What are we designing our warehouse to do?
When looking forward the scenarios might be:
• Growth, stability or even reduced stock
3. Warehouse Design Data Analysis
• Data Future Growth
• Wider or reduced product ranges
• The introduction of completely new product ranges
• Additional services (value added)
Warehouse Design Module
If we are using an existing building, then we need full
details of:
• Floor strength and flatness
• The clear working height (not just the eaves height!)

– dock levelers and doors
– drains and manhole covers
– lighting runs – sprinkler locations / water tanks
– fire fighting equipment (hoses and sprinkler installations)
• Most important: check for cracks in the floor and leaks in the roof
3. Warehouse Design Data Analysis
• Existing Building – Possibly supported with a site survey
Warehouse Design Module
For green field or brown field sites, we need:
• Plans of the site and the surrounding area
• Confirmation of accessibility to site (24/7?)
• Available services (power, gas, water, Communications, 4 /
5g)
• Solar PV options
And, before we make any commitment:
• An independent ground survey, checking for load bearing
capacity, drainage / history of flooding and soil
contamination
• Existing planning permissions or, if not available, existing
similar facilities close by (and operating without restrictions)
3. Warehouse Design Data Analysis
• New Build Warehouse
Warehouse Design Module
3. Data Analysis – Day in the Life Of Mapping
23
Day in the Life Of
The day in the Life of diagram
provides another way of reporting
activity within an operation. This
tool can also identify potential
bottlenecks as they occur during
the working hours of a day or
throughout a week.
Warehouse Design Module
• Outputs from Analysis
Day 2
05:00 06:00 07:00 08:00 09:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00 00:00 01:00 02:00 03:00 04:00 05:00 06:00 07:00 08:00 09:00
Area 06:00 07:00 08:00 09:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00 00:00 01:00 02:00 03:00 04:00 05:00 06:00 07:00 08:00 09:00 10:00
Orders Recived in WMS wave 1 Wave 2 Wave 3
AM Shift
PM Shift
Night Shift
Pick Wave 1
wave 1 Loading Wave 1
Pick Wave 2
Wave 2 Loading Wave 1
Pick Wave 3 Wave 3 Loading Wave 1
Replen
Returns
Wave 1 Pick window 10% am pick – 90 % pm pick
Wave 3 Pick window 100 % Night pick
Put Away
Returns Processing
Day in the Life- Base Case
AM Inbound shift – 06:00 to 14:00
AM Picking shift – 06:00 to 14:00
AM Outbound 06:00 to 14:00
PM Inbound shift – 06:00 to 14:00
PM Picking shift – 06:00 to 14:00
PM Outbound 06:00 to 14:00
Nights Inbound shift – 06:00 to 14:00
Nights Picking shift – 06:00 to 14:00
Nights Outbound 06:00 to 14:00
Replen
Inbound
Wave 2 Pick window – 100 % pm pick
3. Data Analysis – Material Flow Diagram
24
Flow Diagram
Material Flow
Diagrams are
generated to provide
a visualisation of the
key tasks performed
through an operation
The diagrams can
identify potential
bottlenecks in
operations
Warehouse Design Module
• Outputs from Analysis
Total Vehicles
Number of Vehicles 17 17 10% increase over 2017 on all inbound activities
UK
Total Pallets
Number of Pallets 495 495
Rows 20 to 29 Rows 30 to 39 Rows 40 to 49 Rows 50 to 54 Put Away Pallets
0 0% 126 25% 159 32% 175 35% 35 7% 495
Transfer!!!!! 30 onto Mezz Replen Split
30 Back into Storage Min Max = 59%
JIT = 41%
whse 1 to whse 1 whse 1 to whse 2 whse 2 to whse 1 whse 2 to whse 2 Total Replens
Min Max Min Max 617 Min Max Min Max 617 Min Max
JIT JIT 256 JIT JIT 256 JIT
Build 1 Build 2 Build 1 Build 2 Build 1 Build 2 Build 1 Build 2 Build 1 Build 2 Build 1 Build 2 Build 1 Build 2
76% Bulk
8% 11,140 1,455 1,296 783 Picks 1,290 1,050 19,460 36,473 Lines Picked (work type 1)
4% 136
164 271 14,466 Orders Picked
same same same same same increased by 8% increased by 76%
439 160 49 228 348 70
assumes 15
lines / pallet 778
assumes 30
units / pallet 2,071 Pallets
16,537
Pallets loaded 439 784 Break factor of 1/3 applied 848 2,071 Pallets
261.36
Number of Loads 26.14 Loads
15.00 8.71 10.00 34
assumed 1
work id = 1
pallet
Material Flow – Future 2020 – Average Week
2020 Increase
Ecom
Wholesale
Retail
108 116 43 625 13,246
Tip
Picking
Putaway
Load
Replen
Put Away
Build 2 Reserve
Receiving
Receipt
Palletised Loads Loose Loaded
Tip
Re Plen
Amazon CB + WS + SLT EDI GEN Ecom
Trucks Wholesale
Tip Tip
Retail
Tip
Put Away
Build 1
UPS
Returns
4/5 vehicles / day unloaded, Monday to Friday – 30 pallets per vehicle
Future Scenario assumption – 100% palletised loads
Returns
Tip
Dir Ship
1. Adjustable Pallet Racking
2. Block Stacks
3. Drive in racks
4. Narrow Aisle racks
5. Double Deep racks
6. Push Back Racks
7. Live Racks – inclined – gravity racks
8. Shuttle racks – equipped with a cart
9. Mobile racks
4. Warehouse Design Options –Racking
Racking Types
Warehouse Design Module
4. Warehouse Design Options –Racking
1. Adjustable Pallet Racking
26
Adjustable Pallet Racking
• Typically operated using Reach trucks for
reserve locations
• Each individual pallet is accessible
• Picking done at low lever using Low Level
order Pickers – LLOP’s, or and pallet trucks –
manual or powered. Picking trolleys.
• Racks can be fitted with beams to provide a
shelving pick solution
Warehouse Design Module
4. Warehouse Design Options–Racking
27
Example Block Stack Warehouse
Block Stacking
• Typically used for items difficult to store in racks.
Maybe due to the pallet types, or the overhang
of product, the weight of the pallets, etc
• Or used for Cross docking of fast items , the
stock turns quickly – usually located by dock
turns.
• White Goods – Clamp Trucks
2. Block Stacks
Warehouse Design Module
4. Warehouse Design Options –Racking
3. Drive In Racks
28
Drive In Racks
• Fork lift trucks and Reach trucks
• Typically used dense storage of same products in each
lane.
• Access to pallets limited
• Limited applications
• Rack prone to damage
Example Drive In Racks
Warehouse Design Module
4. Warehouse Design Options –Racking
4. Narrow Aisle racks (VNA)
29
Very Narrow Aisles
• Aisle width of between 1.6m and 2.0m depending on height
/ weight of pallets
• Operated in by either Articulated Fork Lift Trucks, turret

Man Down – Turret Truck
Warehouse Design Module
4. Warehouse Design Options–Racking
30
Double Deep racks
• Pallets stored 2 deep in racks
• Accessed using reach trucks or articulated trucks
• Trucks fitted with a telescopic attachment to
allow for access to 2nd location
• Attachment reduces lift height of truck
• Only suitable for a limited range of storage types
• Same SKU / batch
• Cannot mix SKU / batch in a location
• WMS needs to support put away logic
5. Double Deep racks
Example Double Deep Racks
Warehouse Design Module
3. Warehouse Design Options–Racking
31
Push Back Racks
• Push-back racking for pallets has a single loading
and unloading area
• Push-back with shuttles: In the system with
shuttles, each pallet, except the last one, is
deposited on a shuttle, which moves on rails
with a slight incline.
• Push-back with rollers: The pallets are moved by
means of roller beds fixed to the structure with a
slight incline.
6. Push Back Racks Example Push Back Racks
Warehouse Design Module
4. Warehouse Design Options–Racking
32
Pallet Flow Racking, or “Pallet Live Storage”
• Operated using Reach trucks / Forklift trucks
• Inclined – 4 % typical
• Braking mechanism stops pallets at the lowest point
• Pallets need to be good condition
• Can be used in despatch for marshalling
Gravity – Live Racks
7. Live Racks
Warehouse Design Module
4. Warehouse Design Options –Racking
8. Shuttle racks – Operated using a cart
Warehouse Design Module 33
Shuttle Racks
• High-density compact storage solution
• Reach trucks / Fork lift trucks
• Deep Channels in racks – shuttle moves pallets into
position
• Shuttles are remotely controlled by an operator
• Pallets need to be good condition
> Combined Storage and Picking
Solution
> Reserve locations (2, 3 4 and 5th
level) use Shuttles in racks
> Pick locations supplied from rear
on gravity racks
> This is a good example of mixing
concepts

Radio shuttle Racking – End Elevation
4. Warehouse Design Options –Racking
• 8. Shuttle racks – plus flow racks
Pick Area
Replenishment Replenishment
Warehouse Design Module
4. Warehouse Design Options –Racking
9. Mobile Racks
Warehouse Design Module 35
Mobile Racks
• Reach trucks Remotely
controlled by driver –
or by WMS if the
system is sophisticated
• Racks run on rails
recessed in the floor
• Not suitable for fast
moving operation
Storage Equipment
Carousels/Vertical lift modules
• High-capacity storage for pick and pack
• Brings parts to operator
• High speed picking solution if multiple carousels used
• Reduction of travel by SKU
• Security of product
Add a footer 36
• Design considerations – table
• Excludes Sprinklers
4. Warehouse Design Options –Racking
Comparison Table
Warehouse Design Module
Adjustable Pallet Racking
Block Stacks
Drive in racks
Narrow Aisle racks
Double Deep racks
Push Back Racks
Live Racks
Shuttle racks with carts
Mobile racks
Utilisation of floor area 2 2 4 4 4 3 3 5 5
Utilisation of building height 4 1 4 5 4 4 4 4 4
Usable cubic storage space 3 1 5 5 3 3 4 5 4
Speed of access & throughput 4 2 3 2 3 3 3 2 2
Access to individual pallets 5 2 2 5 2 2 2 2 3
Stock rotation 5 2 3 5 3 2 4 2 4
Specialised handling equipment No No No Yes Yes No No No No
Ease & speed of installation 4 5 3 2 3 3 3 3 2
Ease of re-location 3 5 2 1 2 2 2 2 1
Adjustment of pallet positions Yes N/A Yes Yes Yes Yes Yes Yes Yes
Maximum height in metres 13 5 12 16 13 13 13 13 13
Cost per pallet £60 £2 £160 £70 £70 £400 £400 £160 £500
Scores out of 5
Warehouse Design Module 38
Adjustable Pallet Racking (APR)
100
91 111
118
3
Number of Pallets 8,000
11
Utilisation 85% 361
101
Bays per run 13 4
Total Storage pallets 9,412
Bays 286
Double runs 11.0 166
Stoage area 29,291 sq.ft
Total Height 17,170 mm
Top Beam 15,900 mm
Beam Loading 3,000 KG Key
Frame Loading 33,000 KG xx
Pallet to upright cleance OK
Pallet over hang Front & Back OK
= input cell
Data selection
Select for Yes
Fork Entry
Aisle
Frame to Frame
MHE Type
Frame
Depth
Sprinklers
Main Menu
• Tool developed to quickly compare alternative
storage concepts
• Various Rack Designs and MHE operating
specifications can be evaluated
4. Warehouse Design Options –Racking
Warehouse Sizing Tool Design for 18,200 pallets
1. Long span / Short span shelving
2. Mezzanine Shelving
3. Mobile in Rack Shelving
4. Live shelving
5. Mobile Shelves
6. Mezzanine Floors
5. Warehouse Design Options –Shelving
Shelving Types
Warehouse Design Module
• Long span / Short span shelving
• Shelving can be located in racks as shown on the right – or free standing
as on the left
• Provides dense storage of smaller items
5. Warehouse Design Options –Shelving
1. Long span / Short span shelving
In Rack Shelving
Free Standing Shelving
Warehouse Design Module
• Long span shelving can be used to support
mezzanine structure
• Provides good use of vertical space
• Ideally fast moving items located to the
lower level
5. Warehouse Design Options –Shelving
2. Mezzanine Shelving
Warehouse Design Module
• Relatively new concept
• Provides dense storage in pick face
• Racks are on rails – easily moved so
operators can access varying
depths
• Fast moving items positioned to
front – slow movers to rear
5. Warehouse Design Options –Shelving
3. Mobile in Rack Shelving
Warehouse Design Module
> Gravity feed of items to the pick face
> Replenish from rear – pick from front
> Enables separation of MHE from pick aisles
5. Warehouse Design Options –Shelving
4. Live Shelving
Warehouse Design Module
• Aisles accessed by using levers to open
aisles
• Ideal for dense archive storage of files and
records
5. Warehouse Design Options –Shelving
5. Mobile Shelving
Warehouse Design Module
• Uses height of building – space is “free of
charge”
• Sometimes placed above goods receiving /
despatch
• Multiple layers can be used
• Accessed via lifts / conveyors / pallet gates
5. Warehouse Design Options –Shelving
6. Mezzanine Floors
Warehouse Design Module
1. Fork Lift Truck
2. Reach Truck
3. Articulated Truck
4. Powered Pallet truck
5. Order Picking Trucks
6. VNA Trucks
7. Manual Picking Trolleys
6. Warehouse Design – Material Handling Equipment (MHE)
MHE Types
Warehouse Design Module
• Typically used for
• Unloading / Loading vehicles
• Yard duties
• Sometimes to store pallets in racks – drive in or APR
• Can be fitted with a variety of attachments
• Double pallet handling accessories
1. Fork Lift Trucks
6. Warehouse Design – Material Handling Equipment (MHE)
Warehouse Design Module
Slip Sheet Attachment Roll Attachment Hydraulic Clamp Attachment
1. Fork Lift Truck Attachments
6. Warehouse Design – Material Handling Equipment (MHE)
Warehouse Design Module
• Typically used for moving received
items into racks / P&D locations
• Also used to replenish pick faces
in wide aisle picking areas
• A reach truck can operate in aisles
of 2.8 metres or more if the truck
is larger
• Used to am maximum height of 13
/14 metres
• The higher the lift height the
larger the truck – the wider the
aisle required.
2. Reach Trucks
6. Warehouse Design – Material Handling Equipment (MHE)
Warehouse Design Module
• Multi function truck
• Unloading / loading
• Put Away / Retrieval
• Operate in narrow aisles – less than 2 metres
• Can operate up to approx. 11 metres lift
• Can be used with attachment to store
double deep – restricts height
3. Articulated Fork lift trucks
6. Warehouse Design – Material Handling Equipment (MHE)
Warehouse Design Module
• Typically used for unloading and loading
operations
• Manual walk behind trucks also available
• Also used for general warehouse transfers
• Can be fitted with extended forks to carry more
than 1 pallet or cage at a time
4. Ride On PPT’s powered pallet trucks
6. Warehouse Design – Material Handling Equipment (MHE)
Warehouse Design Module
• Man Up and Man Down trucks available
• Trucks fitted with forks to enable operator to pick directly onto
pallet, or trays or cartons.
• Allows for complete order pick of slow and fast moving items
• Allows for higher locations items to be picked separately and
consolidated at a later stage as an alternative
5. Order Picking Trucks
6. Warehouse Design – Material Handling Equipment (MHE)
Warehouse Design Module
• Used in aisles of between 1.6 and 2.0 metres up to heights of 16m

• Trucks can also be used for picking tasks
6. Very Narrow Aisle Trucks
6. Warehouse Design – Material Handling Equipment (MHE)
Warehouse Design Module
• Operator pushes trolley around warehouse – can be used with pick to
light system
• Can be designed with steps to allow for accessing higher locations
7. Picking Trolley
6. Warehouse Design – Material Handling Equipment (MHE)
Warehouse Design Module
Case Study
Warehouse Design Module 55
Client : UK Based Retailer
• 120 UK Retail Stores
• Started business in 1991.
• Business volumes Growing
• Sales – Retail affected by Covid –
• Retail volumes ongoing difficult to predict
• Potential for number of stores to reduce –
• Ecom
• Significant growth in last 2 year
• Volumes forecast to increase ongoing
• Current warehouse is working at max capacity
• Warehouse lease due to renewal 2022 therefore decision required as to what to do next
7. Background
7. Case Study
Warehouse Design Module
1. Renew lease and review options to increase capacity of
current site
2. Relocate to a new facility
3. Outsource warehouse operations to a 3PL.
7. Options to be considered:
7. Case Study
Warehouse Design Module
For this to be a viable option requirement to
increase storage capacity –
7. Renew Lease on existing facility
7. Case Study Option 1.
Warehouse Design Module
For this to be a viable option requirement to
increase storage capacity –
• reconfigure wide aisle to VNA
7. Renew Lease on existing facility
7. Case Study Option 1.
Warehouse Design Module
For this to be a viable option requirement to
increase storage capacity –
• reconfigure wide aisle to VNA
• Extend Mezzanine Floor – increase footprint
– additional shelving area
7. Renew Lease on existing facility
7. Case Study Option 1.
Warehouse Design Module
For this to be a viable option requirement to
increase storage capacity –
• reconfigure wide aisle to VNA
• Extend Mezzanine Floor – increase footprint
– additional shelving area
• Extend warehouse – subject to planning
consent / landlord consent.
7. Renew Lease on existing facility
7. Case Study Option 1.
Warehouse Design Module
For this to be a viable option requirement to
increase storage capacity –
• reconfigure wide aisle to VNA
• Extend Mezzanine Floor – increase footprint
– additional shelving area
• Extend warehouse – subject to planning
consent / landlord consent.
7. Renew Lease on existing facility
7. Case Study Option 1.
Warehouse Design Module
Engage
Architect for
Planning etc:
Produce
Employers
specification
Tender
Building
Work
Engage
Builder
• Identify if possible local warehouse – consider
location in relation to selected parcel carriers.
• Size of warehouse to be suitable to accommodate
forecasted growth – 5 year planning horizon.
• Fit out required – new rack – sprinklers – costs –
redundancy / retaining staff / potential loss of
skills.
• Availability of labour at the new site – competition
for staff – costs, training.
7. Relocate to New Facility
7. Case Study Option 2.
Warehouse Design Module
• TUPE
• Contract Term – possibly 3 or 5 year contract
• 3PL to potentially supply new WMS
• Long term commitment – reduces options for client
• Costs likely to increase compared to in house operation
– investment from 3PL to be financed by 3PL – costs to
include 3PL margin
• Flexible – could be part of shared user solution.
• Transfer of problem to 3rd party – however, loss of
control.
7. 3. Outsource to 3PL (3rd Party Logistics Provider)
7. Case Study Option 3.
Warehouse Design Module
• Ecom picking impacts on the operational space
requirements
• increased volumes results in large space requirements for
consolidation of picks from different parts of the
warehouse
• space required for packing operations
• space required for sortation and storage of loads in
advance of despatch
7. Other factors to consider
7. Case Study
Warehouse Design Module
Auto Baggers / Auto box Erectors
66
BVM – Brunner B
Market leader in UK
100% Biodegradable materials
Lynxx
Returns – high for fashion items –Ecom returns typically 30% of despatched units
Store Returns – at set times of the year – results in high level of inventory on floor
Options to consider – Sell off stock instead of return to warehouse?
7. Other factors to consider
7. Case Study
Warehouse Design Module
Questions ?
Please ask any questions you may have.
Warehouse Design Module 68
Thank You
Tony Hughes
+44 7960 213193
[email protected]
Tony Hughes Consulting Ltd
69
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