Cold storage warehouse facilities, just like other warehouses and distribution centers, struggle to make the most of their labor resources. One way warehouse operators in the refrigerated environment are addressing these concerns are by focusing on warehouse layout optimization. When facilities are laid out inefficiently or improperly marked many labor hours can be wasted on travel time. Taking the time to address warehouse layout design can help your warehousing operation to achieve maximum space utilization and process improvement. The first stage of warehouse layout optimization is the designation of functional zones. This is done using analytics on past activity and estimates on future needs. These reports will help your team to identify the proper size and location of each zone. This information should be accessible from your warehouse management system where inventory and activity data is recorded. The top 4 functional warehouse zones identified using forecasting and projections are storage, yard/dock, picking and VAS/kitting zones. To identify the proper size of the storage area evaluate key factors such as project inventory levels, temperature requirements, product dimensions, fulfillment rules, flow through rates and more. All of these factors will play a part in determining proper storage layout. Data must also be collected to determine yard and dock door requirements. Too little staging space and dock doors can create a significant bottle neck, slowing down warehouse productivity. When determining picking and shipping size and location identifying your picking strategy will help to make these decisions. Consider the space requirements needed for all types and which will work best for your available resources. If your refrigerated warehousing operation provides any variety of value added services such as kitting space and layout must also be considered for this. Determine what areas require their own designated space and which can operate in shared space. Planning this space effectively will promote faster inventory flow through rates. Leaders in the refrigerated and frozen supply chain are constantly evaluating these factors to ensure their space utilization provides growth opportunities. Do not let an inefficient warehouse layout stop your business from growing. Learn more about this cold storage warehouse best practice in this brief SlideShare.

1. COLD
STORAGE
WAREHOUSE
BEST
PRACTICES:
WAREHOUSE
LAYOUT
OPTIMIZATION
BY: ANGELA CARVER

2. Warehouse Layout Impacting Productivity
• Many labor hours are wasted traveling through warehouse facilities
with inefficient layouts and/or insufficiently designated and marked
areas.
• Warehouse layout and design can have significant impact on the
productivity and efficiency of your refrigerated warehouse staff.
• The goal of warehouse layout design is to improve cold storage
warehousing processes and achieve maximum space utilization.
Performing frequent evaluations on space utilization and warehouse
layout is a commonly overlooked cold storage industry best practice.

3. Cold Storage Warehouse Zone Designation
• Industry leading cold storage facilities are frequently divided into
functional areas. Each functional zone serves to support an everyday
operational process. Typical cold storage zones include:
– Storage
– Picking
– Cross docking (if applicable)
– Shipping
– Receiving
– Assembly/VAS
– Quality/Inspection
• Necessary areas are designed using analytics on past activity and
anticipated future needs.

4. Inventory Forecasting and Reporting
• Determining the location and size of each zone should be done using
historical and projected volume data. This information can be
gathered using inventory management tools or WMS where inventory
data is centrally stored.
• Using this data, cold storage warehouse operators can more
effectively project future space requirements.
Let’s take a closer look at what factors you should take into
consideration when planning varying warehouse zones…

5. Top 4 Functional Warehouse Zones
PickingYard/DockStorage VAS/Kitting

6. Refrigerated Warehouse Inventory Storage
• An analysis of existing and projected inventory levels on a SKUbasis
will help you determine where and how large your storage space
should be.
• Using data such as expiration, temperature requirements, product
dimension, fulfillment rules and more will allow you to separate SKUs
into groups based on inventory storage rules. This will help users
quickly identify where and how product can be stored.
• Next, identify the flow through rate of all inventory items. Items that
move more quickly should be placed closer to dock areas for optimal
order fulfillment rates.

7. Refrigerated Warehouse Inventory Storage
• With complete information on refrigerated inventory groupings, flow
through rates and forecasted demand the size of both pick locations
and reserve storage areas can be more accurately determined.
• Having an optimal combination of both pick and storage locations
will help your staff to improve inventory handling efficiency and
reduce labor hours needed to perform regular inventory management
tasks.

8. Refrigerated Warehouse Yard & Dock Doors
• When determining the optimal size of your equipment yard and the
number of dock doors, it is necessary to consider the average number
of trucks received each day. It is important to take into consideration
any traffic fluctuations that may occur due to seasonality.
• If your facility has too few dock doors a bottleneck effect will be
created, slowing down the rest of your operations.
• Too little staging space in front of dock doors can also hinder your
refrigerated warehouse operation. When planning staging areas
consider typical trailer load size and any additional square footage
needed for additional quality assurance and/or value added services.

9. Refrigerated Warehouse Picking & Shipping
• The top issue to consider when planning picking zones iswhether
your facility will implement batch picking or order picking.
• Batch picking, frequently done with the assistance of material
handling equipment, requires more space on the dock for sortation
into designated orders and shipments.
• Order picking requires less space on the dock for shipment staging
as orders are picked directly to the pallet, but is more efficient when
top picking zones are identified and placed in easier to accessareas.
• Shipping space, like dock doors, can become a bottleneck if the
appropriate square footage is not designated in your refrigerated
warehouse.

10. Refrigerated Warehouse VAS/Kitting
• Many cold storage 3PLs perform a variety of value added servicesfor
their customers.
• When designating valuable square footage to this operational zone
warehouse operators should consider the types of VASs they provide
now and may add in the future.
• Individual services may require dedicated space while others can
share. Effectively planning space utilization for value added services
will help to improve VAS labor productivity and the inventory flow
through of this zone.

11. Conclusion
• Creating a balance within your cold storage facility will helpyour
team to run at peak efficiency.
• Leaders in the refrigerated and frozen supply chain industry regularly
evaluate warehouse space utilization within their facilities to ensure
the best proportions are maintained as their business evolves.
• Implement these space utilization industry best practices to allow
your cold storage operation to grow and adapt with changing
customer needs.
Source: http://www.scdigest.com/assets/NewsViews/06-09-21-4.cfm?cid=791

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