<p><strong>Warehouse Layout or Warehouse Design is a Constant Topic of Discussion</strong></p>
<p>Automation of various kinds is on everyone&#8217;s lips, but we still have a large portion of handling in traditional warehouses with manual picking in racks and shelves.</p>
<p>The physical layout is important, how should packing areas, goods reception areas, etc., be positioned in relation to storage/picking locations? How should different picking areas be positioned in relation to each other?</p>
<p>There are several established methods for designing a layout that fits your specific flow. One is Systematic Layout Planning (SLP), another is Systematic Handling Analysis (SHA). They are often used together as they complement each other.</p>
<p>These methods have been around for a few years and were primarily developed for manufacturing logistics. There has been some research on alternative layouts, such as Flying-V and Fishbone layouts. With simulations, driving/walking distances have been reduced by 10%-20%. However, investing in such a layout can be perceived as risky considering it is not an established technique and WMS are not adapted for it.</p>
<p>Overall today, it is recommended to perform simulations on your specific goods and flows. It is the only way to ensure that you design an optimal layout. Especially in large warehouses with many picking zones and several packing areas. With large flows, it can have significant consequences for cost efficiency if done incorrectly.</p>
<p>If we look at e-commerce logistics and B2C in general, there is a big difference in flows compared to traditional B2B. Often, orders have few lines and few quantities. The challenge is to get as much picked in as short a distance as possible. With large manual flows of, for example, FMCG products, floating storage locations may be preferable. You can create smaller locations for increased volume efficiency and picking density. You can distribute a high-frequency picking item in several places to reduce bottlenecks. With rapid changes in picking frequency, you can change the status of an item and place a former A item in a C location and let the A location be picked first. This way, you avoid unnecessary and costly relocations of goods.</p>
<p>But to achieve really good efficiency, you need to take it a step further and use AI. Several WMS work with dynamic slotting where AI continuously evaluates where an item should be placed. Additionally, AI can see how an item should be placed in relation to other items that are often picked together. When tests have been conducted on this, it turns out that it is not at all certain that there is logic in which items are picked together and the relationships between the items constantly change. Predictive AI can analyze and forecast for, for example, seasons and adjust location and location type for optimal volume utilization. AI can also create the optimal route in the warehouse with real-time data and can look at factors such as which picking locations are currently under high load, thereby avoiding waiting time.</p>
<p>Designing an optimal warehouse layout is so much more than just looking at the arrangement of racks. WMS is an incredibly important tool for creating the best conditions for cost-effective flows. Together with AI, it becomes even more efficient.</p>

Things to consider when optimizing warehouse flows
