7 Steps to Design E-Commerce Warehouse Layout #ecommerce #warehouse #warehousing #storage #logistics

06 Steps to determine the size of your e-commerce warehouse - https://youtu.be/BxpoJBUVCPE

The average size of a warehouse has reduced by 60% in 2022 compared to 2000, due to the advancement of warehouse automation systems in these 20 years.
Post-pandemic and with the rise of online shopping every year, the average rent of warehouse space has increased significantly.
Thus it's a necessity to design a layout that is: efficient and at the same time cost-effective.

07 Steps to Design E-Commerce Warehouse Layout

We have defined detailed must-do steps, to ensure you do not miss out on any, Also we have a Take-away Tip at the end of each video which will help you in organizing and expanding. So, stay tuned until the end of the video!

Step 1: Analyse the space required for your warehouse
It's important to calculate the space requirement, based on the following factors
1. Packaging Size of the products
2. Estimated Order Volumes for the next 12 or 24 months for each product category
3. Warehouse Height
4. Rack size and height
5. Your buying or purchase TAT i.e. after you place a PO to your supplier, on average, within how much time does he deliver? This can vary for local purchases and imports
6. No racks required (which can be estimated, after you have the answer to points no: 4 & 5)
7. Lastly: space is required for other operations like Inward, Outward, Utility Area, Scrap Area, etc.

Step 2: Design the Macro Layout
Macro layout consists of following
Outer walls
Inner walls which cannot be demolished
Entry and Exit points of the warehouse
Utility areas, which cannot be demolished (like toilets, washbasins, etc)
Thus, at this stage: we get the layout specifications which cannot be changed due to certain limitations

Step 3: Define the Zones
The next step is to define the various Zones on the Layout, to understand the space available for each activity within the warehouse
Example:
Orange Zone: for the Inward area
Blue Zone: for goods storage area
Yellow Zone: for utility area
Green Zone: for the Outward area

Sep 4: Define Micro Layout for each Zone
Now start micro-planning within each Zone
Example:
Orange Zone: for Inward area
From where the goods shall enter
Where shall it be kept for staging during inward
The average size of consignment we can expect
Equipment required for unloading and their size specifications
Aisle space is required while unloading and keeping the goods in the inward staging area
Space to keep the pallets which need to be given back to the transporter

While you plan your micro plan for each zone, there are chances the zone size might increase or decrease, which is absolutely fine
The above example is for an Inward Area. Along similar lines, you need to study while planning the micro layout of each zone

Sep 5: Safety and security measures
To ensure your warehouse design planning is safe and secured, consider the following parameters
1. CCTV positioning
2. Light positioning
Example:
If your lights are positioned over the racks, then this affects the efficiency. Ensure adequate light within the aisle space between the racks
3. Temperature control requirements as per the product stored
Example:
In case of cold storage: ensure you have planned an anteroom
4. Handling equipment required & their size shall help to determine the minimum aisle space required between 02 racks and while the movement of goods within the warehouse
5. Not more than 01 or 02 entry/ exit points within the layout
6. No open windows unless you have a fixed safety net

Step 6: Storage of Goods
To achieve fast TAT in deliveries, ensure you store the fast movers at eye level
Heavy goods at the bottom of racks
Excess ordered goods or lightweight goods at the higher shelves of racks
Thus, plan the height of shelves within the racks accordingly

Step 7: Check before you start building
Last but not the least, now that you have your layout designed, ensure a few points are verified before you start building your warehouse as per the layout designed
1. No leakages on walls/ ceilings
2. adequate space available for a transport vehicle to enter the warehouse for loading/ unloading
3. Ensure you do pest control after your civil changes are over and before your start placing your racks

Now, here are your steps to design an e-commerce warehouse layout.

TAT for this video is:
Define SOPs
The warehouse team cannot operate without well-defined SOPs
SOPs are to be defined, during layout planning, to ensure your SOPs are practical to implement & they do not just remain on paper.
Integrating SOPs with the Layout is the key to optimizing your e-commerce warehouse operations!
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MUSIC: Alec Koff @YouTubeMusicLibrary

Time
0:00 - Intro
0:49 - Step 1
1:26 - Step 2
1:47 - Step 3
2:09 - Step 4
2:51 - Step 5
3:49 - Step 6
4:08 - Step 7