Logistic Consultancy

eCommerce Pick / Pack Warehouse Design

The client is a privately owned UK high street retailer which operates c. 100 stores and has a substantial and rapidly growing eCommerce offer, including click & collect.

The company sells a wide range of products, from batteries, small electrical appliances, hardware and cleaning products to garden furniture sets. The business is managed from a single distribution centre.

The client needed to improve its ways of working, systems and warehouse layout to improve productivity and capacity, especially around the eCommerce operation. While it could draw on internal capability to deliver some of these changes, external consulting help was sought from Go Supply Chain to review the general layout and the details of the eCommerce pick / pack operation.

Go Supply Chain’s logistics consulting team took data provided from the retailer’s business systems and, applied our standard methodology for pick-face sizing and SKU allocation. This analysis trades off pick-face density against frequency of replenishment to determine the most productive mix of pick-face sizes. Taking into account seasonality of product sales, and the annual ‘churn’ in the SKU range was also important in determining the number of locations required, and defining seasonal picking areas and dynamic pick faces. Requirements for packing benches were assessed, and the client was advised of benchmark pick / pack rates for single and multi-item orders.

At each stage in the analysis, the findings were ‘played back’ with the client’s operational management team in workshop sessions.

Having defined the make-up of the picking area, our warehouse layout design consultants put together layout options with CAD drawings and capital cost schedules, before arriving at a final set of recommendations.

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Client

  • eCommerce Pick / Pack Warehouse Design

Requirements

  • Understand the existing warehouse eCommerce operation and review requirements for the future in line with the company’s growth plan
  • Undertake pick-face sizing analysis and provide a schedule of pick-face sizes / types by SKU
  • Provide an operational layout design, with CAD layout drawings, capital equipment and operating cost schedules, and advice on warehouse process improvement
  • Suggest operational design changes for the main DC area, to improve picking and replenishment efficiency and release additional capacity within the same space

Business Benefits

  • A robust eCommerce warehouse design based on analysis of business data and application of current operating methods and equipment – this will reduce cost per unit and facilitate eCommerce growth
  • Main DC layout tweaked to improve workflows and productivity, providing greater productivity and capacity for growth

warehouse

Published by: Go Supply Chain Ltd