Malaysia's Cold Chain Industry Guide


5 Key Fundamentals of Warehouse Optimization

Leading Edge of Cold Chain Storage June 3, 2022


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Whether it is the F&B or pharmaceutical industry, there are five key aspects to consider when designing a warehouse. Understanding how each fundamental works with one another can increase overall productivity and efficiency, ultimately reducing cost and additional work.

The key fundamentals are Stream, Planning, Accessibility, Capacity and Easy Traceability. To summarise, there should be SPACE when designing a warehouse.

1. Stream

A stream is a logical and efficient sequence of operations within the warehouse, with each function working well before and after it. It means a smooth one-direction flow of operations with little to no disruptions.


2. Planning

Planning how goods move across the warehouse is substantial to an efficient warehouse. It provides additional guidance in the selection of a storage system as well as the most appropriate handling equipment, particularly an order picking system.


3. Accessibility

Accessibility is what allows you to create quick and easy-pick zones. When there is minimal effort to attain a product, the workforce and machinery can function with minimal disruption. An efficient pallet racking system can help reduce interference. Accessing goods should be easy, clear and transparent. Some warehouses designs to consider are I, L, U and V layouts.


4. Capacity

Knowing precisely the max, gross and net capacity of warehouses is crucial to avoiding underproductivity. Efficiently utilising warehouse capacity can also lead to better inventory visibility, lesser travel time, and more efficient operations. A good marker is operating at 85% of warehouse capacity to ensure productivity


5. Easy Traceability

An easy traceability system is a set of procedures that indicates a product's location in the supply chain. It also tracks the product's path and anticipates which direction it will take. Having a warehouse management system, for example, will provide better control of goods from start to end.


In Summary

Understanding the different layout designs of warehouse facilities is critical to ensuring optimal resource utilisation. Consider the factors mentioned in this article to help you make better decisions when designing a warehouse to utilise warehouse space, increase productivity, and improve order fulfilment rates.