According to Prochazka & Partners, as part of increasing efficiency and streamlining the supply chain, the biggest trend is currently to consolidate more warehouses into one central distribution center. Even though “reason” would command that corporate growth automatically means more storage space. The second, necessary and logical step in consolidation is to use automated warehousing systems. Only in this way will companies achieve the required financial savings thanks to higher productivity, which can be up to five times that of a non-automated system.
Consolidation
Companies often operate with one main warehouse and several smaller ones. Why is it more advantageous to buy one larger central distribution center?
“One of the most frequently mentioned benefits of consolidation is certainly higher efficiency per meter of area, especially if companies serve a large number of orders that require picking from multiple locations,” says Petr Narwa, Head of Transaction & Consulting Services.
Of course, the warehouse can also grow so-called “up”. If the building has a higher ground clearance, it is good to consider two approaches. Either build a mezzanine in the warehouse (so-called mezzanine), or even better a vertical elevator system. In addition to increasing the warehouse-operating area, it also increases safety at the workplace, reduces the error rate when picking goods and enables better tracing of goods in the warehouse. Increased safety is possible mainly due to the vertical elevators, which transport workers to the “golden zone”, which is located between the knees and shoulders of the worker, which results in less injury in the workplace.
Of course, if your business is already so robust that you cannot avoid more warehouses, it is good to consider the so-called consolidation warehouse, which, on the contrary, has the task of unifying several orders of goods from different warehouses into one truck, which will then set off. delivery than to drive more vehicles from different warehouses.
Automated warehouse systems
Although the purchase of automated warehousing systems means a larger investment, the return is usually a year and a half. Without automation, it is then difficult to defend the investment of unifying several storage spaces into one central warehouse. Thanks to automation, there is a better use of warehouse space without the need for expansion. In addition, better awareness of how much, what and where exactly is located can keep inventory to a minimum (just-in-time approach). Combining several items on an order into one package within one warehouse will then increase the speed of removal from storage. Thanks to automated systems, there is also a lower error rate and damage to the goods. The main benefit is faster movement of goods thanks to less complicated logistics.
“Consolidating more warehouses into one without automation is not worthwhile in today’s time of significant growth in rental prices. It is automation that helps save considerable resources on consolidation – due to the higher efficiency of operators or their smaller number. The initial higher investment in an automated warehouse may ultimately be more cost-effective than expanding with the old methods to another new warehouse, ”adds Narwa.
Source: Prochazka & Partners
