Warehouse Layout Optimization
with FlexSim Simulation
BIG Planning & Logistics HQ
Agenda
BIG Warehouse Strategic Framework
BIG Warehouse Layout Principles
Simulation Concepts
Practical Results in BIG Countries (Brazil and Germany)
Summary of Improvement Results
FlexSim Warehouse Layout Simulation Tool
Toolkit Available for Implementation
BIG Warehouse Strategic Framework
Strategic Objectives:
• Improve Warehouse Safety
• Increase Warehouse Density /
throughput
• Increase Warehouse Productivity
Warehouse
Density
Warehouse Layout
& Labor Planning
Performance
Management Execution
(PME)
Warehouse
Building local
Capabilities
Increase number of
cases per layer and
layers per pallet
Have right warehouse layout,
equipments, capacity & right
number of people per
function
PME: clear roles and
responsibilities for each
warehouse function
Str
ate
gic
Blo
cks
Fo
cu
s
To
ols
TOPS FlexSim Warehouse
Layout Simulation Tool
BIG Labor Planning &
Smart Scheduling Tool
BIG Warehouse
Training Workshop
Be
ne
fits
Increase warehouse
density & reduce
handling, distribution
and transportation
costs
Guarantee warehouse
capacity to cope with
growth , increase
productivity, throughput
and reduce cost per case
PME: change management
process for measuring and
managing employee
engagement in all
warehouse functions.
Improve local warehouse
capability and
knowledge about IDS,
Warehouse Operations
and Mixed Pallet
Makeup Area
PME: actionable metrics,
managed at the floor level,
visual boards & 10 minute
standup meetings
PME: labor planning and
scheduling tools, goal
setting, and CIP
• Reduce Warehouse Cost per Case
• Improve Service (Fill Rate)
• IT Tools Aligned with Program Scale
COE: Leveraging
successful practices and
integrated tools and
processes
Warehouse
Automation/WMS
High density rapid deep
lane storage: 2X
racking
High speed pallet
staging & mixed pallet
building
Business case based
on key factors: density,
Speed,
labor costs, and
Inventory Deployment
Strategies
Vertique, Swisslog,
Westvalia, Activ, NKF
BIG Warehouse Layout Principles Setting the right warehouse layout is one of the most important enablers to achieve safety, high
labor and material handling equipment productivity and efficiency.
--- Principles for an Efficient Warehouse Layout ---
Safety should be consider in the warehouse layout design
Storage plan should be based on ABC curve. High turnover
Items should be located near the loading area. Slow movers
items should be stored vertically high and fast movers low
Items often received, ordered or manufactured together
should be located near each other
Adequate storage height to maximize capacity and in
compliance with local regulations.
Respect stacking height of each package. Floor stacking is
recommended for high turn products and case flow rack for
“C” items in the picking area
Adequate aisle spacing (9 FT for pallet jacks, replenishment
aisles 12.5 for single and 15 for double) and should be
visually identified in the floor to minimize congestion
Compact picking area to minimize distances traveled by
picking personnel. Pick aisles should be perpendicular to the
loading area
Simulation Concepts
“…Simulation is the modeling of a process or a system in such a way that the model mimics the
response of the actual system to operational events that take place over time..”
Warehouse Simulation Process Flow
Accounts for variability in warehouse
operation
Is versatile enough to model different
kinds of layouts and warehouse
functions
Provides information on multiple
performance measures
Forces attention to detail in the design
phase (data consistency)
Captures system interdependencies
(e.g. production lines throughput)
Shows operational behavior over time
Runs in compressed, real or even
delayed time
Data
Gathering
Data
Validation
Initial
Modeling
Scenarios
Simulation
Results
Evaluation
Benefits of Simulation Analysis
Practical Results in BIG: Brazil Norsa Layout Analysis Previous Baseline Layout for Salvador Plant
Warehouse Capacity (pallets)
REQUIRED 2010
7.541
CURRENT AVAILABLE
4.842
LOADING POSITIONS
REQUIRED
6
AVAILABLE
6
PICKING
Picking area
255
Practical Results in BIG: Brazil Norsa Layout Analysis Proposed New Layout for Salvador plant
Practical Results in BIG: Brazil Norsa Layout Analysis
WAREHOUSE CAPACITY (pallets)
REQUIRED (DEC 2014)
11.107
AVAILABLE
11.350
LOADING POSITIONS
Distributors/ Transfer
8
Delivery
16
PICKING POSITIONS
Picking
183
Push-back + Dynamic
372
Flow Rack
86
Main corridor with 5 m and secondary corridor with 4 m
Loading area outside the warehouse. (Expand roof to cover the loading area)
Drive in/blocked for A items, Drive in/blocked for B items, push-back/rack pallets for C
Picking Area in “U” divided in Returnable and Non returnable using a push-back to speed up
replenishment process
Case flow rack for slow mover items
Proposed New Layout: Improvement from 4.842 to 11.350 pallets – 134%
Practical Results in BIG: Germany FFB Layout Analysis Previous Baseline Layout
WAREHOUSE CAPACITY (EURO-PALLETS)
AVAILABLE
21,250
LOAD POSITIONS
PICKING AREA
AVAILABLE
976
AVAILABLE
8
Zone Current aspects
Loading Two loading areas
Storage pallets in Loading areas Horizontal loading area
Storage Mobile single pallet racking for B and C
Floor Stacking for A Items More than 20 pallet position length per row
Picking Picking in Line inside Live Pallet Racking (B and C Items)
Single/Mobile Pallet Racking for C Items
Picking on floor positions
Single live pallets positions
Practical Results in BIG: Germany FFB Layout Analysis Improvement Opportunities Identified
Major objective : Increase warehouse capacity and throughput
Areas of opportunity :
- Storage area:
• Review the best combination of storage structures and equipment
• Evaluate current row length
- Loading area:
• Evaluate breakdown walls
• Consolidate current truck load tunnels
• Change load direction (backload versus sideload)
• Evaluate staging area location and sizing
- Picking area:
• Review picking area flow and configuration
• Evaluate best storage structures to minimize footprint
• Evaluate best deep storage level
Practical Results in BIG: Germany FFB Layout Analysis New Warehouse Layout: Improvement from 21.250 to 27.932 – 31%
WAREHOUSE CAPACITY – 2.012 (EURO-PALLETS)
REQUIRED
27,718
AVAILABLE
27,932
LOAD POSITIONS
FUTURE LAYOUT
10
PICKING POSITIONS
FUTURE LAYOUT
806
STAGE POSITIONS
FUTURE LAYOUT
327
Item Changes
A
Include 2 load positions and staging areas focused on
full pallets loads (NR-delivery to CW customers) -
Needed to break down the walls to have outsides lane
(outside of the storage area)
B Maximum 12 pallet position length per row (A items)
C Include case flow racks for slow movers C items
D 1st floor – Live Pallet Rack and 2nd and 3rd floor -
Pushback racks for C items (4 deep rack)
Ite
m Changes
E Pushback racks for C items (2 deep rack)
F One new gate to access the loading area
G Include 4 load positions and stages areas focused on
Forwarders
Practical Results in BIG: Germany FFB Layout Analysis Pictures of New Warehouse Layout
Backloading Area Old loading Area
New loading area New gate to loading area
Case flow rack Case flow rack
Live pallet rack Tunnel
Case flow rack
Practical Results in BIG: Germany FFB Layout Analysis Pictures of New Warehouse Layout
Practical Results in BIG: Germany Cologne Identified Improvement in both Density and Productivity
Summary of Improvement Results
Support our strategy for lean and flexible network design by maximizing asset utilization
of our production warehouse locations allowing increased storage and throughput
velocity
Increase warehouse density (cases per m2) on average by more than 30%. It is a key
enabler to implement different IDS strategies (cross docking, fast flow, etc.)
Develop warehouse people capability on how to design warehouse layouts inside BIG
Reduce operational bottlenecks and inefficiencies inside the warehouse, increasing
total warehouse productivity by 8 – 13%
Guarantee storage and operational capacity to cope with sales demand growth for
next 3 years. Reduce outside storage expenses (temporary warehouses due to lack of
space)
Improve safety – Reduce accident risks
Reduce truck turnaround time for transportation operation due to right number and
position of loading docks at production warehouse and distribution centers
FlexSim Warehouse Layout Simulation Tool Develop BIG Warehouse Layout Simulation Tool that will allow each country to perform warehouse
optimization analysis for all their warehouses to increase warehouse density and throughput.
Customized and standard approach to perform warehouse analysis inside BIG that
significantly reduces complexity and length of time it takes to complete the initiative
Develop local SME capabilities in analyzing and executing a warehouse layout optimization
Significantly reduce cost and provide low cost replication capability that allows unlimited
use to perform analysis in multiple locations
Pre-defined successful practices already embedded inside the tool
Benefits of BIG Simulation Tool:
Upload your current CAD drawing
3D view of simulation execution
Simulate 3 years forecast growth
Design all warehouse operational processes
like receiving, putaway, truck loading,
picking, staging, etc.
Different types of rackings (e.g. Single rack,
dual putaway and retrieval, push back, case
flow rack, etc.)
Automatic or user-defined SKU slotting
Auto-populate inventory capability
FlexSim Warehouse Layout Simulation Tool Key Functionalities:
Labor group definition and different break
patterns
Simulate Layer picking operation
Different types of material handling
equipments (e.g double, triple and quads
forklifts)
Simulate different inventory policies
Multiple scenario analysis
Comprehensive and flexible KPI dashboard
FlexSim Warehouse Layout Simulation Tool
VIDEO with FlexSim Overview
FlexSim Warehouse Layout Simulation Tool Robust Toolkit Materials Available for Implementation in BIG Countries
One Page Summary BIG Whse Layout Guideline Data Gathering Template
Reading Materials Face to Face Workshop Detailed On line Help