Using Warehouse Automation to alleviate Space Constraints
Should I stay or should I go now? It's a great song by the Clash and a great question for people in distribution.
Space is one of the most important factors in your distribution center. How can we squeeze out a few more feet, a few more yards or a few more inches? At some point though, the battle appears lost you have to relocate. So....
Let's Go! With a new distribution center you can make everything exactly how you want it. You can optimize everything, reduce headcount, and ensure that your processes are safe and ergonomic. You can build a high bay warehouse with AS/RS, and take advantage of new warehouse automation technologies. The sky is the limit.
You can also have your current system run at full tilt while you build (or move to) the new distribution center. No cost in opportunity, no loss in revenue or uptime.
But, maybe you're locked in a lease, you don't have available capital or your current dc is close to the best pizza place in town? So....
Let's Stay! Building a new distribution center or just moving to a new space is expensive. Not to mention, the possibility of lost time and revenue. Maybe staying is the best option for you. The trick is to increase throughput by improving your systems while still running a fully functional distribution center.
So, can you build out? Maybe adding on is the right answer. You can add space and upgrade your equipment all in one fell swoop.
On the other hand, maybe it's impossible to change the building's structure to create more space? Well, how about optimizing the material handling system? Batch pick systems rely on miles and miles of conveyor. Can you take out some the conveyor and sorter and replace it with a more product to person system, with a smaller footprint?
If you decide to stay in your current building, you can take out less optimized systems and replace them with more efficient ones. You can convert a static rack to a miniload or another type of automated system.
No matter what you do, your decision requires careful thought and consultation with someone who can offer an array of options. If the only tool in your toolbox is a hammer then the whole world tends to look like a nail.
Also, remember that maximizing cube utilization and increasing efficiencies can impact the entire supply chain - better usage of space on trucks, reduced transportation costs, or reduced store costs due to better planned deliveries.
What other factors are important when considering staying vs. going? Let me know by commenting below.
Schaefer Systems International, Inc., the North American subsidiary of the SSI SCHAEFER group of companies, established headquarters in Charlotte, North Carolina, in 1989.
SCHAEFER’s automation integrates to any existing system earning us an international reputation as the global leader in the material-handling industry for returnable packaging, static racking, and highly complex, automated distribution systems. With over 70 years of experience and a 100% commitment to quality behind every SSI Schafer system, we focus on providing our clients with unconventional picking and storage solutions delivering best value