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Importance of Space Planning in Logistics

A warehouse is the central pillar of your logistics supply chain and its proper functioning and management can lead to increased profits for your company. According to a report, the cost of warehouse activities across the globe is over 300 Million Euros. For a place that can churn such huge sums of money for your company, it is important to maintain it properly in order to obtain maximum benefits from it.

Sadly, many businesses pay no heed to warehouse planning and incur huge losses. Storage of goods doesn’t just include the safekeeping of goods but involves multiple inter-dependent elements like product reception, storage, packing, and shipping. Therefore, warehouse space planning is important because it allows you to judge the total space of your warehouse and make decisions accordingly related to the inventory and transport of your goods.

A well-planned warehouse can be considered as the one that allows for easy reception, packaging and delivery of orders. Warehouses are designed to store a large amount of inventory, containers of different sizes along with other equipment. Lack of proper organization of these goods can either damage them or lead to delays in their shipping which ultimately eats away the profits and credibility of your company. Fortunately, there are multiple ways by which you can lower warehousing costs for your company. Some of them are detailed below:

Separation of Inventory According To Value
Every company has an inventory of products that are widely used or generate good profits for the company. Labeling such products and storing them close to the packing zones will not only reduce errors in picking but also save precious time for your company.

Measuring Available Space and Inventory
A typical warehouse is usually comprised of bins that are filled with pallets which accommodate the goods. Each bin has a different area, depth and can accommodate an ‘x’ number of pallets. A safety distance is also maintained in between the bins to prevent any damage to the goods. By analyzing each bin separately and counting the number of pallets it can fit, you can assess the total capacity of your warehouse.

Know Your SKUs
Goods come into your warehouse in different volumes and sizes, so measuring each product that you receive is critical for analyzing the total capacity of your warehouse. The packing of the goods can also determine the bin capacity, along with the number of pallets that can be stored in the bin. So, by taking into account the size of the goods, the area of the bin and the number of pallets required, you can maximize the available space inside a warehouse.

Vertical Stacking of Goods
Horizontal stacking of goods eats away a large amount of space in your warehouse. You can stack your inventory vertically in order to make maximum use of the available space in your warehouse. By stacking inventory vertically, you can avoid the cost of purchasing additional space and it can also help you increase your inventory to maximize profits.

Planning of space for inventory and labour movement
There are multiple teams working inside a warehouse to ensure its smooth functioning. Creating pathways for human labour is an essential element of warehouse design. Routes should be created such that each team has easy and independent access to their service areas without coming in each other’s way. Apart from labour, you also need to take into consideration the route planning for forklifts and trolleys as they need the most space for movement on a regular basis.

Everything that goes on inside a warehouse is important for the timely delivery of goods. Even a short improvement in a particular element inside the chain of operations of a warehouse can bring about huge savings for your company.

If you are someone who is struggling with your warehousing requirements and looking for the help of an expert to bring you back on track, then ARK India is your go-to partner in these situations. With over 40 years of experience in the logistics industry, ARK India provides the necessary expertise required for the smooth functioning and management of a warehouse. Contact us today and get ready to maximize savings when it comes to warehouse planning!