The success or failure of most warehouse design projects comes down in a lot of cases to layout; assessing storage requirements, the movement of goods into, around and out of the warehouse, access requirements and the siting of utility services and staff facilities.

There are lots of decisions to be made before you start work on the design, but in this article we have summarised the most important ones. Hopefully by making these decisions at the outset you’ll avoid some of the pitfalls that can dog warehouse installation projects.

Do it yourself or bring in the professionals?

A tricky one, the budget may already be tight, so will the services of a professional warehouse designer be cost effective? Generally the professionals are accustomed to take into consideration the details that you might not, they are aware of the latest warehouse management system tools and have dedicated design software to plan for the optimum use of space.

You will need to explain the way your business works, the nature of your goods and plans for expansion need to be factored in.

Forecasting your stock profiles and access requirements are key factors to consider before any re-planning of your warehouse space can begin. Stock control is a key part of managing your space and good stock control systems can make a huge difference to the underlining profitability of your business. Stock and space are a cost to your business, so it makes sense to only carry what you need. Most of the major manufacturers operate a “Just in Time System”, only buying what they need as and when they need it.

Look round your existing stock holding, how much of it has been in your warehouse for appreciably longer than your suppliers’ delivery times to you? Do you stock in breadth or in depth? How much of your storage is taken up by Goods in Transit, could the transit time be shortened?

Stock control forms just a part of an effective warehouse management system, it is not an exact science, and you need a little elasticity because you can’t predict every nuance of demand. Even though you can’t know every detail of your future orders, keep ease of adaptability in mind when designing the original layout.

Now that you have developed systems to estimate the actual volume of storage you will need, the question arises of how the goods are to be stored. Do your goods require a temperature controlled environment? What sizes and types of racking, cages, pallets or shelving do you need? Typical warehouse storage solutions include, pallet racking, long span racking, industrial shelving, boxes and pick bins. Whilst pallet racking is most suitable for storage of pallets, long span racking and industrial shelving are great ways to increase square footage, store larger quantities and create easily accessible pick locations. Standard racking shelves are incredibly adaptable – not to mention very simple to assemble and dismantle as required, which makes them perfect for smaller spaces as well as large open areas.

Will you need to allow aisles wide enough for fork-lifts, are most of your goods still picked and packed by hand or mechanically, and do you use a conveyor belt system? A major factor drastically affecting warehouse layout is the flow of goods within the facility. If your warehouse is an existing structure then the decision may already be made for you due to the current positioning of docks and loading bays, but if you are building a new facility, think about which system best suits your needs.

‘U Flow’ is the most favoured system. This is when both goods in and goods out functions are located at the same end of the building, usually sharing a dock. The flow of goods follows a ‘U’ shaped pattern, with faster moving product lines being stored nearer to the doors to improve efficiency. This system provides excellent lift truck utilisation, facilitates cross-docking and improves security (as all access points are located nearby).

When designing your warehouse layout it is not just about storage, and flow, it is also about people. It is important to consider how the various parts of the business and teams working within the warehouse/logistic function will effectively communicate with each other and work together.

Try to site co-dependant departments within a short distance of each other. This will enable easy communication between relevant personnel, and also ensure you are wasting as little time as possible with continuous walking back and forth.

It may seem like a minor consideration but over time those lost minutes can equate to a significant expense.