Detailed Warehouse Design

Client : Multi-National Packaging Manufacturer
Background

Our client commissioned the project to design their new Reel Store at Botany, NSW as a result of the construction of a new state-of-the-art manufacturing line and operating software upgrade. The project involved the development of a Reel store attached to their relocated Mill at Botany. A new Reel warehouse design was required to accommodate the significant future increase in production volumes.

Challenge

A key objective of this study was to identify design solutions to minimise known hazards and risks while simultaneously ensuring maximum utilisation capacity, improved process and productivity. To achieve this objective, a detailed assessment of safety, travel times, product movement, system and process related issues was required to determine their impact on warehouse performance and capacity, including:

  • Material Flows and manufacturing feeds
  • Operating methods and warehousing policies
  • Cubic and footprint Capacity utilisation
  • Material Handling Equipment and automation opportunities
  • Travel distances and loading dock configuration.
Approach

A detailed and interview/data based assessment of the warehousing operation was conducted, including the following activities:

  • Targeted staff interviews focussing on issues related to People, Systems, Process and Infrastructure
  • Review of warehouse operating processes and historical SOH and sales data
  • Determined WMS functionality required to drive design and process improvements
  • Conducted high level analysis of product/location labelling standards and location management methods
  • Travel distance analysis to determine target manning levels of future operation and optimum pick paths
  • Detailed safety and risk assessment to determine trade-off between optimum capacity, operational efficiency, OH&S regulatory compliance and “lowest” risk operation.
Outcome

Identified optimum layout focussing on areas such as operating processes, travel distances, and safety. Finalised loading zone and internal driveway locations to minimise impact on capacity and reduce hazards while maintaining council and regulatory compliance. Determined necessary software capabilities to drive warehouse improvements. Recommended manning levels required to meet new production requirements.

 

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Testimonials

"We saved $14 million in six months... here are the graphs. We're used to being promised these kinds of numbers; we're just not used to having them delivered."

– Wing Commander, Royal Australian Airforce (RAAF)

Typical results

  • 20-40% inventory investment reduction
  • increased service levels ranging up to 99.9%
  • 10%-15% reduction in supply chain operating costs
  • 5%-20% spend management savings
  • the ability to fund business initiatives from operating cash flow (OCF) improvements
  • improved return on capital employed (ROCE)
  • a minimum 3:1 ROI (10:1 to 30:1 typical)