Racking Up Success: Operational Elements That Impact Rack Specification
Racking Up Success: A Partnership Guide to Warehouse Optimization
Assessing The Current State
Episode #2: Operational Elements That Impact Rack Specification
In our first video of the series, we laid the groundwork for setting up successful racking operations by covering key project setup elements. Now, in this second video, we dive into the operational details that will directly impact your project’s performance.
In this episode, our experts share insights on why selecting the right racking system is crucial for optimizing every square foot of your facility and maximizing its storage potential.
Join Jennifer, a partner at LIDD specializing in supply chain optimization, along with Waleed Usman, Director of Projects at North American Steel, and Angie, LIDD’s partner leading our Warehouse Technology practice. Together, they explore the nuanced decisions involved in designing space-efficient warehouse layouts and selecting racking solutions tailored to specific SKU characteristics.
Video:
For a detailed summary and practical takeaways, check out our blog post below. It breaks down key points from the episode, with tips on selecting racking based on SKU velocity, future-proofing your design, and aligning racking with tech investments.
Blog Summary
In Episode #2, the experts emphasize that optimizing space isn’t just about adding more racks; it’s about choosing the right type for your SKUs.
Analyzing SKU Characteristics and Pallet Dimensions
They began by highlighting the critical operational factors influencing racking decisions. SKU frequency, product types, pallet dimensions, and weight are essential elements for determining racking load capacities and optimizing layouts. Walid cited a recent project with a leading beverage distributor where the team designed a racking system tailored to accommodate diverse product types and rapid SKU turnover. For example, in a recent project with a leading beverage distributor, North American Steel implemented a racking system designed to accommodate diverse product types and rapid SKU turnover.
- Designing a warehouse with seven different types of racking systems to accommodate various product types and inventory needs.
- The systems included single deep, double deep, open warehouse shelving, cantilever racking, and case flow racking.
- The goal was to optimize storage space and improve efficiency by understanding the customer’s inventory and operational requirements.
- The implementation resulted in a significant increase in storage capacity and operational efficiency
By analyzing their inventory data, the team tailored the racking solution to enhance accessibility and efficiency, resulting in a 20% increase in storage capacity.
Warehouse Design and Inventory Profiles
This data-driven methodology is essential in avoiding the common pitfall of generalized racking systems, which can lead to underutilization of warehouse space. Many facilities miss out on up to 25% of their potential storage capacity due to inefficient designs. Jennifer stressed the importance of creating operational profiles for inbound, inventory, and outbound processes, ensuring that every aspect of the warehouse aligns with its specific inventory requirements.
A key insight from the discussion is the critical importance of avoiding a “one-size-fits-all” approach to warehouse racking design. Jennifer highlighted that this common misstep often leads to significant inefficiencies in operations. By partnering with teams like LIDD and North American Steel (NAS), companies can address the specific needs of their products—such as size, weight, and pick frequency—when designing their warehouse layouts. This tailored approach ensures that racking systems are optimized for the types of SKUs being handled, ultimately enhancing operational flow.
Jennifer explained how LIDD uses data to create profiles for inbound, inventory, and outbound operations. These profiles help determine the best racking solutions, such as single selective or denser options like pushbacks or other multi-level racking systems.
Dense Storage & Optimal Space Utilization
Properly designed multi-level racking systems can significantly increase storage density, enhancing a warehouse’s overall storage capabilities without the need for expanding its physical footprint. In the discussion, Walid and Jennifer talk through various types of racking systems, including single selective, pushback, double deep, pallet flow, and semi-automated shuttle systems. Each of these systems caters to different density and operational needs, allowing for maximum cubic storage and improving the overall functionality of a warehouse.
Diverse Racking Systems Explained:
- Single Selective Racking: This traditional racking system allows for easy access to individual pallets, making it ideal for warehouses with a wide variety of SKUs but lower storage density. It’s a flexible solution but may not fully utilize vertical space.
- Pushback Racking: This system enables pallets to be stored deeper within the rack, allowing for high-density storage. Pushback racking is ideal for items with similar characteristics, as it utilizes gravity to move pallets forward when one is removed, ensuring efficient inventory retrieval.
- Double Deep Racking: By storing pallets two deep, this system increases storage density while still allowing for selective access. However, it requires specialized lift trucks to retrieve pallets, which could lead to higher equipment costs.
- Pallet Flow Racking: Using a first-in, first-out (FIFO) system, pallet flow racking utilizes gravity to keep pallets moving from the back of the rack to the front. This system is excellent for high-volume inventory and perishable goods, ensuring that older stock is used first.
- Semi-Automated Shuttle Systems: This advanced system utilizes automated shuttles to retrieve and store pallets within the racking system, significantly enhancing efficiency and space utilization. It’s particularly beneficial in environments with high SKU turnover rates.
Influence of WMS Equipment on Dense Systems
Replenishment Activity and Challenges
Another area where WMS systems need to be considered in unison with the layout design & racking is when it comes to managing replenishment tasks. When warehouses are designed without considering product dimensions and inventory flow, inefficiencies arise, complicating stock access and management. Proper dimensioning is essential to prevent inventory placement issues.
A well-configured WMS automates replenishment by analyzing real-time inventory levels, triggering restocking when necessary. This ensures products are readily available, reducing stockouts and improving order fulfillment. However, challenges arise if the warehouse layout and racking doesn’t align with WMS strategies. Inadequate space for inventory dimensions can lead to delays and increased labor costs. Thus, effective warehouse design must support WMS processes to optimize replenishment activities, ultimately enhancing operational efficiency.
Other Considerations for Dense Systems
Truck Lifts
The discussion emphasizes the critical importance of ensuring compatibility between lift trucks and racking systems, particularly within dense storage environments. As Walid pointed out, using the appropriate type of lift truck is essential for efficient operations; for example, double deep systems require specialized double deep reach trucks, while high-density solutions like pallet flow or pushback racking necessitate specific types of equipment such as counter balancing.
For example, a customer moving to a facility with a 40-foot clear height attempted to use their existing reach trucks, which could only reach up to 28 feet. This mismatch resulted in the inability to utilize the top levels of the new racking system, leading to significant underutilization of available storage space. In dense systems, where the goal is to maximize storage capacity by reducing aisle space and increasing storage depth, the compatibility of lift trucks becomes even more critical. If the equipment cannot effectively access all levels of the racking, the benefits of these systems are negated, resulting in operational bottlenecks and increased costs. Therefore, careful planning and design are essential, taking into account factors such as building clear height, pallet dimensions, and the specific requirements of the chosen storage solution.
Pallet Weights
Designing for different pallet weights is another critical consideration. Value engineering in racking systems allows warehouses to accommodate various pallet weights without over-designing. This not only optimizes costs but also ensures that storage solutions align with operational needs. Angie added that WMS plays a vital role in managing different pallet weights and types. By creating zones and rules, WMS helps ensure efficient storage and retrieval, streamlining the entire process.
Racking System Design & Integration
Walid provided a comparative analysis of hand stack versus case flow racking systems, outlining their respective benefits depending on inventory types. Hand stack racking is a flexible solution for manual handling, accommodating various product sizes and weights. It excels in warehouses with diverse SKUs, offering ease of access and adaptability while optimizing space utilization. In contrast, case flow racking systems are ideal for high-turnover environments, employing gravity to support a first-in, first-out (FIFO) inventory strategy. This is particularly beneficial in industries like food and pharmaceuticals, where product freshness is crucial. As noted by Walid, case flow racking minimizes obsolescence by ensuring older inventory is sold first, thus reducing waste and enhancing cash flow.
The effectiveness of racking system design relies heavily on the integration of WMS. Angie explained that reconfiguring WMS for new layouts involves a series of sequenced steps and physical operations. While this process isn’t overly complex, it requires careful planning to align new configurations with operational needs.
The team emphasized that aligning WMS capabilities with racking systems and inventory management strategies is essential for operational efficiency. By continuously updating WMS configurations, warehouses can adapt to evolving requirements and optimize workflows.
For a deeper understanding, watch the full episode where our experts delve into the technical and operational considerations that go into maximizing space and efficiency in warehouse projects.
Watch: https://youtu.be/cOfyFw7Heos
Want to learn more about warehouse optimization? Check out these related episodes!
Bios:
Jennifer is a highly accomplished logistics and supply chain expert specialized in optimizing supply chain assets and investing capital wisely.
Angie, serving as a Partner for LIDD’s Warehouse Technology practice, leads WMS implementations across LIDD’s industry diverse clientele in food distribution & transformation, e-commerce, omni-channel distribution, & retail.
Waleed Usman is a Director of Projects at North American Steel and manages the execution of racking selection and implementation projects. For 7 years, Waleed has successfully led teams to implement safe and effective storage solutions for a wide range of customers. With a focus on optimization and communication, Waleed’s commitment to customer satisfaction and timely project delivery is exceptional.
Keywords:
warehouse racking, supply chain consulting, industrial infrastructure, pallet racking, warehouse optimization, racking system, storage solutions, warehouse design, automated warehouse, racking inspection, automation, racking specifications