best practice in managing warehouse density storage as a
TRANSCRIPT
Imran AliSupply Chain – India, Middle East & Africa
Best practice in managing
Warehouse Density storage as
a tool for Lowering costs and
improving profitability
About P&G Supply Chain
>130Plants
40Customization
Centers
65 000Employees
1.5BTruck km’s/year
250Shipping Locations
60 000External Partners
A “Good” Racking System
Meets the users requirements (storage & throughput)
Optimum between Capital Cost and Operational Cost
Is prepared for the future
RACK SELECTION CRITERIA
Cost of the Rack Type
LOT Size of each SKU
Warehouse Design
Method to load/unload trucks
Forklift Truck Type Available
Future business development
Seismic Zone or not
Capability of forklift drivers
Throughput Requirements
Standardization of Racks inside DC
Order picking or storage area
Density vs Flexibility
LOT size (# pallets in one lot)
Sto
rage
Den
sity
*(m
2/p
s)
6432164 82
0.7
0.6
0.5
0.30
0.8
0.4
Drive-in
Selective
Shuttle
Double deepVNA
1
* Excluding impact of traffic aisles, staging area’s, etc…
Push BackMovable
e.g. some F&HC and BabyCare skue.g. most BeautyCare, Gillette sku’s
1. Lot-size is the most important
decision parameter
2. It is not efficient to store sku’s
with a small lot-size in a rack
designed for a large lot-sizes, as
this leads to very low
filling/utilization rate
TIP : Start with selective racks and then justify on LOT-size and space savings if you can use a more space efficient rack type.
Standardization of Racks
1. Avoid to many different type of racks
inside a DC
a. Adds complexity for the operations
b. May require different forklifts to use
c. Reduces flexibility
2. Target to have 2 or 3 types maximum
Standardization of Forklifts
1. Reach TrucksPros: Most flexible, can operate all racks
Cons: can not work at street level
2. Counter Balance TrucksPros: Faster in use, good for outside
Cons: Limited to 7m lift height
3. Very Narrow Aisle TrucksOnly suitable for a VNA rack
The default approach is use a Reach Truck for the storage racks !!But if you already have a big fleet of forklifts, then this may drive your decision !!