When setting up distribution centers and warehouses, there are three common errors related to design and location.
These mistakes can be costly and time-consuming, but you can avoid them.
In this video, I’ll highlight these issues and offer practical advice to ensure a smoother, more efficient process.
Watch for valuable tips and resources!
Designing Without Proper Assessment
One major mistake companies make when moving to a new distribution center is starting the design process without a comprehensive assessment. Often, businesses acquire land or lease space before thoroughly understanding their needs. This approach can result in a warehouse that is either too large or too small for their actual requirements. For example, companies might end up building or leasing more space than necessary, wasting resources. Conversely, failing to plan for future growth can lead to inadequate space as operations expand.
Insufficient Planning for Growth
Another frequent issue is not adequately planning for future growth. While businesses might account for current space needs, they often neglect other factors like increased product variety or changes in inventory. If a company’s product range or storage conditions change, their initial space calculations may no longer be sufficient. For instance, adding chill or frozen storage requires careful consideration during the design phase.
Detailed Future Profiling
A third common mistake is not detailing the future profile of the warehouse. It’s crucial to anticipate not just current needs but also future changes. This includes understanding the number of SKUs, pick locations, and storage types. Planning for future changes in inventory handling methods, such as moving from manual to automated systems, is essential. Without this foresight, companies may face costly redesigns later.
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“.
