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The Importance of Warehouse Layout Optimization

In logistics and supply chain management, an efficient warehouse layout is critical for productivity. A well-planned layout boosts workflow, cuts down picking time, and leads to faster order fulfillment, ultimately enhancing customer satisfaction. Here’s why optimizing your warehouse layout matters and how it can improve your operations:

warehouse layout optimization

     1. Improving Workflow Efficiency

An optimized layout makes it easier for goods and staff to move around. Key factors include:

Zoning: Organizing the warehouse into zones (like receiving, storage, picking, packing, and shipping) helps group related activities, cutting                  down unnecessary movement.
 Strategic Stock Placement: Placing high-demand items near the shipping area reduces the time it takes to pick and pack them.
Clear Pathways: Wide, uncluttered aisles improve traffic flow and reduce accidents.
By improving the workflow, you can reduce delays and allow staff to focus on more important tasks.

  1. Reducing Picking Time

Picking is often the most time-consuming task in a warehouse, but an optimized layout can significantly cut down on picking time. Here’s how:

  • Batch Picking: Organizing products in a way that allows for batch picking—where multiple orders are picked simultaneously—can save time and effort.
  • ABC Classification: Utilizing the ABC analysis method, where items are categorized based on their sales volume, helps place high-velocity items in easily accessible locations.
  • Pick-to-Light Systems: Implementing technology like pick-to-light systems can guide pickers directly to the items they need, further speeding up the process. By reducing picking time, warehouses can increase order accuracy and throughput, leading to happier customers.

warehouse layout optimization

  1. Utilizing Vertical Space

Many warehouses underestimate the potential of vertical space. By optimizing vertical storage, businesses can:

  • Maximize Storage Capacity: High shelving units and racking systems can create additional storage levels without expanding the warehouse footprint.
  • Facilitate Easy Access: Designing layouts that allow easy access to upper shelves through the use of lifts or automated retrieval systems ensures that all inventory is accessible when needed.

Optimizing vertical space can lead to improved inventory management and reduced operational costs.

  1. Incorporating Technology

Integrating technology into warehouse layout design can further enhance efficiency:

  • Automated Systems: Implementing automated storage and retrieval systems (AS/RS) can optimize space and reduce human error.
  • Warehouse Management Software (WMS): Using WMS to analyze and adjust layout based on real-time data can help identify the best configurations for peak efficiency.
  • Mobile Devices: Equipping staff with mobile devices for inventory tracking can reduce delays and improve real-time communication.

Technology can play a crucial role in maximizing the benefits of a well-designed warehouse layout.

  1. Flexibility and Scalability

An optimized warehouse layout should also account for future growth and changes in operations:

  • Modular Design: Creating a flexible layout that can be easily adjusted or expanded will help accommodate changes in inventory, product lines, or order volumes.
  • Future-Proofing: Planning for potential technological integrations or changes in customer demands ensures that the layout remains relevant and efficient over time.  A flexible warehouse layout can adapt to the evolving needs of the business, maintaining efficiency as conditions change.warehouse layout optimization

Conclusion

Optimizing your warehouse layout is key to running an efficient warehouse. It improves workflow, reduces picking time, makes the best use of space, and prepares you for future growth. A well-designed warehouse not only boosts productivity but also enhances service levels and customer satisfaction, setting your business up for long-term success. Investing in layout optimization is a smart move with lasting benefits.

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Maximize Efficiency with Warehousing Expertise

In today’s fast-paced and ever-evolving supply chain landscape, warehousing efficiency is no longer just an option—it’s a competitive necessity. Efficient warehouse operations can directly impact your business’s bottom line, reduce operational costs, and enhance customer satisfaction. By leveraging warehousing expertise, you can unlock significant performance improvements and drive growth. Here’s how maximizing efficiency with warehousing expertise can transform your operations. Discover the role of advanced inventory control systems like RFID and barcode scanning in improving stock accuracy.

  1. Optimized Warehouse Layout

An expertly designed warehouse layout is key to minimizing wasted space and streamlining operations. Warehousing professionals understand the importance of optimizing the flow of goods—from receiving to storage, picking, packing, and shipping. By strategically organizing storage areas, using vertical space, and separating fast-moving items from slow-moving stock, you can reduce travel time and increase productivity. Save costs by optimizing your warehouse’s space with high-density storage systems and smart configurations. Learn how optimizing warehouse layout and space utilization can streamline your operations and improve performance.

Warehousing Efficiency

  1. Inventory Accuracy and Control

Effective warehousing isn’t just about storing goods; it’s about knowing exactly where they are and how much you have. Experts in warehouse management utilize advanced systems, such as barcode scanning, RFID tagging, and inventory management software, to maintain accurate stock levels and reduce discrepancies. Better inventory control leads to fewer stockouts, overstock issues, and increased order accuracy—all of which translate into higher customer satisfaction. Efficient order picking strategies reduce lead times, increase speed, and minimize fulfillment errors.

  1. Implementing Lean Warehousing Practices

Warehousing expertise brings a focus on lean principles, which aim to eliminate waste and improve process efficiency. This can include reducing unnecessary movement, optimizing material handling, and streamlining workflows to ensure that every action adds value. Lean warehousing not only minimizes costs but also enhances speed and quality in fulfilling customer orders. Discover the role of advanced inventory control systems like RFID and barcode scanning in improving stock accuracy.

  1. Technology Integration

Warehousing experts understand the critical role that technology plays in modernizing operations. From warehouse management systems (WMS) to automated picking technologies, the right tech solutions can transform your warehouse into a more efficient, scalable operation. With tools such as real-time inventory tracking, automated data capture, and robotic automation, businesses can reduce manual labor and increase throughput. Integrate cutting-edge technology into your warehouse operations to boost scalability and throughput. Boost productivity with technology integration, from WMS to automated picking systems, for faster, more accurate operations.

  1. Skilled Workforce Training

A highly skilled workforce is essential for running a successful warehouse. Warehousing experts emphasize the importance of on-going employee training and development. Well-trained employees are more productive, make fewer mistakes, and contribute to a safer working environment. Investing in employee education ensures that staff members are knowledgeable about the latest industry best practices, equipment handling techniques, and safety protocols.

  1. Efficient Picking and Packing Processes

Order picking is one of the most time-consuming activities in warehouse operations. Warehousing expertise includes designing picking strategies that minimize time and effort, such as zone picking, batch picking, or wave picking. By implementing these strategies, companies can reduce picking errors, shorten lead times, and improve overall order fulfillment speed. Additionally, proper packing techniques can help reduce shipping costs and prevent damage during transit.

Warehousing Efficiency

  • Space Utilization and Storage Optimization

Maximizing space is a top priority for efficient warehousing. Experts can assess and improve your storage capacity through the use of innovative solutions like high-density storage systems, pallet racking, and mezzanine floors. By using space wisely and optimizing storage configurations, businesses can reduce the need for additional warehouses or expansions, saving costs while increasing capacity.

  • Data-Driven Decision Making

Modern warehousing expertise emphasizes the use of data analytics to optimize operations. Warehousing professionals rely on data to track key performance indicators (KPIs) such as order accuracy, fulfilment speed, and labor productivity. With access to real-time data and historical insights, businesses can make informed decisions that continuously improve efficiency, reduce costs, and address bottlenecks. Real-time data and KPIs drive decision-making, helping you address bottlenecks and improve warehouse performance.

  • Sustainability in Warehousing

Sustainability is becoming a priority for businesses, and warehousing is no exception. Experts in warehousing can guide businesses in implementing eco-friendly practices, such as reducing energy consumption, optimizing packaging materials, and using energy-efficient lighting. A focus on sustainability not only reduces operational costs but also enhances your brand’s reputation and helps meet regulatory requirements. Skilled employee training ensures a productive, safety-conscious workforce that drives warehouse efficiency. This piece effectively highlights the importance of warehousing efficiency in modern supply chains.

  • Strategic Warehouse Location

The physical location of your warehouse has a significant impact on shipping times and costs. Warehousing experts can help determine the best location for your facilities based on proximity to suppliers, customers, and transportation hubs. This strategic planning ensures quicker deliveries and lower shipping expenses, improving customer satisfaction while lowering logistics costs. Save costs by optimizing your warehouse’s space with high-density storage systems and smart configurations. It provides a comprehensive overview of strategies and benefits, from optimized layouts to technology integration, employee training, and sustainability.

Conclusion

Maximizing warehouse efficiency with the help of warehousing expertise offers businesses a competitive edge in today’s market. From optimizing layout and space utilization to implementing advanced technology and data-driven strategies, warehousing professionals provide the knowledge and tools to streamline operations, improve accuracy, and reduce costs. By investing in warehousing expertise, companies can not only meet the demands of today but also position themselves for future growth and success. Implement lean warehousing practices to eliminate waste and improve process efficiency in your operations. Real-time data and KPIs drive decision-making, helping you address bottlenecks and improve warehouse performance. Eco-friendly warehousing practices, from energy-efficient lighting to optimized packaging, benefit both the environment and your bottom line.

Complete Logistics Solutions
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Massive investments to drive India logistics growth says JLL

Thanks to fresh investments, supply and interest this sector, the Indian logistics industry is set to reach the next level. Although India is down the rungs on the Logistics Performance Index (India stood 35th among 160 countries in World Bank’s 2016 study) in comparison to some of the top regional markets, launch of GST and huge investments from global players will help the sector grow manifold.

Interestingly, logistics in the Asia Pacific region is performing well in comparison to other global counterparts. According to the 2016 World Bank survey on trade logistics, top regional markets such as Singapore, Hong Kong and Japan feature near the top of a global league of 160 countries in terms of logistics performance, alongside markets in Europe and the United States.

Based on JLL estimates, the total amount of stock in seven largest logistics markets in the region currently totals more than 1.5 billion sqm (gross floor area), double the size of the 795 million sqm in the United States and significantly more than the 260 million sqm in Europe. It is more appropriate, however, to look at logistics stock at a local level, as regional economies are at vastly different stages of development.

The warehousing sector in India has already seen CAGR of 20% from 2014 to 2017, fuelled by economic revival, growth of its e-commerce and the third party logistics industries as well as implementation of GST. The existing stock has a potential to grow at an even faster rate going forward, at least until 2022. Investment in infrastructure is also expected to play a significant role, as large planned investments such as MMLPs, dedicated freight corridors (DFC), etc., in road, rails, ports and airways across emerging India will bolster trade – and, consequently, warehousing demand.

Local Logistic Service in Mumbai
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Maharashtra Logistics Policy being planned to reap GST gains

The Maharashtra government is all set to release a comprehensive logistics policy in a bid to develop the state as a logistics hub and promote port led development. The government hopes that the goods and services tax (GST) regime will come handy in boosting the logistics sector considering state’s strategic and geographic location. Currently, manufacturing, logistics and construction collectively contribute 35% to the state gross domestic product and the government hopes to increase that share till 2022.

Chief minister Devendra Fadnavis, at the interactive session with investors last week, said Nagpur being a zero-mile centre under the GST regime can now become a gateway for the entry of goods and services in the state and spur logistics development. He said about 70% cargo distribution from the Jawaharlal Nehru Port, which is currently restricted to Mumbai, Thane, Pune, will be expanded to 24 districts with the construction of Mumbai-Nagpur Super Communication Expressway and also with the development of supply chain through setting up of 22 agro processing centres across the state.

Sushil Jiwarajka, president, Infrastructure & Logistics Federation of India, said logistics will become a crucial factor in the growth of economy with the onset of GST. ”A far as Maharashtra is concerned, Nagpur is strategically located at the centre of India and can become a logistics hub for major companies with all India distribution. Also, the Mumbai-Nagpur Super Communication Expressway will create a key linkage for goods from the hinterland to the ports on the west coast.” He, however, suggested that the policy should provide fiscal incentives including tax holidays and allotment of land at reasonable rates.

K V Mahiddhar, head of CII Institute of Logistics, said states are preparing policies to incentivise logistics sector. ”States are also focusing on further strengthening transport infrastructure and connectivity, develop warehousing and cold chains to improve overall logistics. Under the GST regime, the investors, especially from the logistics sector, will make investments based on business requirements,” he said.

Jawaharlal Nehru Port Trust Mumbai
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Direct port delivery (DPD) scheme. Advantage or Disadvantage?

What is DPD (Direct port delivery) scheme?

The Central government introduced a programme to speed up delivery of cargo containers to importers/consignees to check extra cost and time involved in the clearances by introducing the so-called direct port delivery (DPD) scheme at the Jawaharlal Nehru Port and Chennai Port, spurred by a report from the World Bank on ease of doing business.

DPD allows importers/consignees to take delivery of the containers directly from the port terminals and haul them to factories without taking them first to a CFS and from there to factories. An importer is thus assured clearance of cargo in less than 48 hours under DPD as against an average of seven days if routed through a CFS. A CFS is an off-dock facility licensed by the Customs Department to help decongest a port by shifting containerized cargo and carrying out customs-related activities outside the port area. Due to Customs procedures and space constraints at many of India’s ports, Customs clearance happens at the CFS. JNPT was designed on the CFS model. In late 2016, the government directed JNPT and Customs to raise the proportion of DPD first from 3 per cent to 40 per cent and later to 70 per cent.

DPD Advantage or Disadvantage?

Top logistics firms, including listed entities that have invested thousands of crores to set up and run container freight stations (CFSs) near India’s container ports, face an uncertain future. Firms such as Allcargo Logistics Ltd, Navkar Corporation Ltd, Gateway Distriparks Ltd, Container Corporation of India Ltd (Concor) and Balmer & Lawrie Co Ltd are among the 33 CFSs operating near JNPT. In fact, Navkar went public in 2015 purely on the strength of its CFS business.

 

Most of the stakeholders in the export-import logistics chain say that the DPD is an excellent concept, but are critical of the way it is being implemented, mainly because it will hurt their business. The government has targeted CFSs to fasten import clearances because this intermediary, it feels, takes the longest time, as much as 8-9 days, in completing all procedures. The long cargo dwell time in CFSs automatically adds to transaction costs, says the government. CFS operators say that the longer dwell time attributed to them is not of their own making. “Importers prefer to keep containers in the CFSs and move them to factories according to their inventory requirements. CFS is the safest and cheapest way of storing containers,” says a CFS executive.

There are some 33 CFSs in Nhava Sheva and another 150 across India. “What’s going to happen to the CFS business, which has seen some ₹10,000 crore investment as a sector, generating employment of a couple of lakhs? The government is saying that CFSs are bad and overnight they have to change. It’s become a completely unviable model. So, what do you do with it? How do you re-engineer? Has the government given that a thought,” asks a CFS operator.

On its part, the government wants CFSs to transform into modern warehouses for doing value-added services, which the CFS industry says would require more floor space index (FSI). ”We dont have the FSI for it,” said the chief executive of a privately run CFS in JNPT area. CFSs, mostly large yards for stacking containers, have a FSI of 0.3 or 0.4. Will the government permit us to have more FSI? Will we be treated again as a sunrise sector by offering tax breaks so that we can re-invent our business model from scratch or should we become terminally sick,” he asked.

Warehousing Space in Bhiwandi
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Warehousing & Logistics space leasing increased by 50 percent in H1 2017: CBRE

According to a report by CBRE the leasing of industrial and warehousing space rose 50 per cent in January-June at 7.3 million sq ft in eight cities and absorption may touch an all-time high in 2017 on positive sentiments after GST rollout. The report further says that the companies from third party logistics, engineering, manufacturing and FMCG sectors contributed about 75 per cent of the leasing.  Leasing activities grew in all sectors except pharma, which absorbed 20 per cent less space in the first half of 2017 as compared to the second half of 2016.

Bengaluru, Delhi-NCR and Chennai were the preferred markets for leasing space. Mumbai’s share was 13 per cent of the total leasing in first half of 2017, while Kolkata, Ahmedabad, Hyderabad and Pune constituted 23 per cent of the demand. “The leasing activity continued to witness strong growth during the first half of 2017, as close to 7.3 million sq ft was leased across cities. The transaction activity grew by almost 50 per cent when compared to H2 2016,” CBRE said.

Among the prominent deals during January-June period, LP Logistics leased about 2 lakh sq ft in Bhiwandi, Mumbai, Honda Two-Wheelers 1.9 lakh sq ft in Bengaluru, HUL 1.8 lakh sq ft in Delhi-NCR and P&G 2 lakh sq ft in Chennai. CBRE Chairman India and South East Asia Anshuman Magazine said the country’s growing economy has helped in increased activities in industrial and warehousing segment over the past few years.   “The sustained growth of the segment, coupled with the implementation of the landmark Goods and Services Tax (from July 1), will result in efficient supply chains and lower compliance costs, the benefits of which will eventually trickle down to make the reform a much needed incentive for businesses in India,” he said.

The deal size rose to 65,000 sq ft during January-June 2017 from about 50,000 sq ft in second half of 2016. The number of transaction above 2 lakh sq ft also doubled during the period under review. “Sustained demand coupled with limited quality supply led to a steep appreciation in rentals (11-13 per cent) in micro- markets like Ghaziabad, Kundli/Murthal in Delhi-NCR, western corridors of Hyderabad and Bhiwandi in Mumbai,” the report said, adding that rentals dipped in Chennai on higher supply.   The consultant projected that rentals in select micro- markets would rise on strong demand.

Jawaharlal Nehru Port Trust Mumbai
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Mumbai Port impacted by Cyber Attack

The Union government on Wednesday confirmed that one of the terminals at the Jawaharlal Nehru Port Trust (JNPT) near Mumbai has been impacted by the latest malware attack.

Officials said the attack has affected all software operations of Gateway Terminal India (GTI). Danish shipping giant AP Moller-Maersk, one of the affected entities globally, operates the GTI, which has a capacity to handle 1.8 million standard container units.

It is anticipated that there could be bunching of in-bound and out-bound container cargo and the Ministry of Shipping and the JNPT were taking steps to ensure minimum disturbance to trade, transporters and more importantly local citizens.

“In reality, nothing could be done manually in that system. You have two options, either work with software or stop it. Thus because of this attack, virtually no work is being conducted at GTI since last night. This attack will have a worldwide impact as thousands of companies from across the globe send and receive containers from this terminal,” the official said.

Maritime conglomerate Maersk group confirmed that its operations were hit by the cyber attack. “We can confirm that on Tuesday, June 27, AP Moller-Maersk was hit as part of a cyber attack named Petya, affecting multiple sites and select business units,” Maersk said in a tweet.

It said, “We are responding to the situation to contain and limit the impact and uphold operations.”

The group is “assessing and managing” the situation to minimise the impact on its customers and partners.

Warehouse in Bhiwandi
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Warehouse in Bhiwandi

Benefits of our Warehouse in Bhiwandi

  • Expertise In Storage & Handling Of All Types Of Material
  • Storage of material in a clean environment
  • Systems for keeping Proper documentation & detail record
  • All warehousing & local logistical services under one roof.
  • 2 Lakh sq ft space for warehousing & local logistical support.
  • We provide G+5 racking warehousing facility at Bhiwandi
  • Secured & Safe premises for storage

Future expansion plans of Akash Storage and Distribution Services Pvt. Ltd.

WE WILL BE STARTING 5 STORIED RACKING WAREHOUSING FACILITY AT BHIWANDI

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How outsourcing your logistic needs to us can prove to be cost-effective for you?

It is a known fact that having an in-house logistic department can enhance a company’s overall operational cost by a great margin, and this also affects the net profit and the benefits that the company wants to pass on to their clients. A smooth logistic operation is essential to the success of the company and the customer satisfaction it provides to its customers.

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Moving freight is a tough task that needs experience and expertise

While, many companies choose to have its own fleet of trucks for moving freight and load, it can prove to be expensive as a whole for the company. This is because buying a fleet of trucks, maintaining it, hiring numerous staff for its smooth operation, having technicians available round the clock, getting approval and licenses, designing logistic routes, maintaining smooth process, meeting deadlines, and so on, can not only increase the operational costs of the company, but can also prove to be a burden in the long run.

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