Material Flow & Layout

The primary purpose of material flow and layout is to maximize operational efficiency by strategically arranging both manufacturing and warehouse structures and inventory to improve material flow, minimize travel time, increase order picking speed, and optimize space utilization, which leads to improvement in. . .

• Workforce Productivity & Efficiency: By placing frequently picked or fast-moving items in easily accessible locations, slotting reduces the time and effort workers spend locating and retrieving items.
• Space Utilization: Slotting ensures that storage space is used efficiently by matching item size to storage locations and reducing wasted space, allowing more inventory to be stored without overcrowding.
• Inventory Accuracy: A well-organized system makes it easier to monitor stock levels, track product movement, and make informed reordering decisions, reducing the risk of overstocking or understocking.
• Worker Safety: Logical organization, with heavier items on the bottom, reduces the risk of injuries from falling objects or unbalanced loads. It also helps clear hazardous clutter and optimize workflow for both people and machinery.
• Labor Costs: Minimizing travel distance and increasing picking speed reduces labor costs. Better space utilization lowers the need for additional storage, and fewer product damages lead to lower overall costs.
• Order Accuracy: An intuitive and organized layout reduces the chances of picking errors, ensuring that the correct items are packed and shipped, which enhances customer satisfaction.
• Scalability & Flexibility: An optimized layout and slotting strategy accommodate changing demand, growing inventory volumes, and evolving product mixes without significant disruption or costly facility changes.

Steps for Warehouse Slotting

1. Data Analysis: Gather data on item velocity (e.g., sales data), weight, size, special storage requirements (temperature, security), and affinity (items often purchased together).
2. Macro Slotting (Zoning): Divide the warehouse into zones for different types of inventory or based on picking frequency, placing fast-movers in easily accessible locations and slow-movers in less accessible areas.
3. Micro Slotting (Item Placement): Determine the precise location for each SKU within its assigned zone, considering factors like:
   • Velocity: Put high-velocity items closer to shipping and lower-velocity items further away.
   • Weight: Place heavier items at ground level to reduce lifting strain and risk of damage.
   • Product Dimensions: Slot items into appropriate-sized locations.
   • Special Requirements: Designate specific areas for items needing temperature control or hazardous material storage.
4. Regular Review and Adjustment: Periodically re-evaluate and update the slotting plan to adapt to changes in demand, inventory levels, and seasonal trends.
5. Leverage Technology: Use a Warehouse Management System (WMS) to track inventory, manage slotting, and provide real-time data for optimization.
6. Apply Results to Layout Design: Slotting analysis is used to calculate requirements for product facings, location sizing, and location that is used to layout storage racking, work centers, and equipment.

Facility Slotting Deliverables

• SKU Slotting Matrix: A spreadsheet or database detailing the specific storage location for each SKU, determined by factors such as product velocity (how fast it sells), dimensions, weight, kitting needs, and product affinity (items often bought together).
• Velocity & Data Analysis Reports: Analysis of product data (e.g., average daily volume) to classify items and determine their ideal slotting placement.
• Storage Method Recommendations: Specific suggestions for storage types (pallet racks, shelves, etc.) and locations based on product characteristics and required days-on-hand.
• Scalability & Technology Recommendations: Identification of technologies and storage solutions that can accommodate growth and evolving slotting needs.
• Project Plan: A detailed plan outlining the steps, timeline, and resources needed for the implementation of the new layout and slotting strategy.
• Training Materials: Resources for training warehouse staff in new processes, equipment, and the rationale behind the changes.
• Performance Monitoring Metrics: Key performance indicators (KPIs) and reporting mechanisms to track the effectiveness of the new layout and slotting strategy over time.

Steps for Material Flow  & Layout

1. Analyze Available Space: Evaluate the physical constraints and overall available space for storage and operations.
2. Map Key Areas: Designate specific areas for receiving, storage, packing, and shipping, ensuring logical flow between them.
3. Inventory Analysis:  Data analysis of inbound, demand and on-hand inventory showing inventory, trends, status, and stocking levels.
4. Consider Product Types: Factor in the number, type, and characteristics of products, such as size, weight, and special storage needs.
5. Incorporate Slotting Analysis: Utilize slotting analysis results for location sizing and SKU positioning.
6. Integrate Safety: Incorporate safety measures, worker well-being, and ergonomic considerations into the layout design.
7. Plan Layout: Configure docks, work areas, main and secondary aisles to allow for efficient movement of workers and equipment, minimizing congestion.

CAD floor plans for the plant or warehouse showing optimized areas from receiving to shipping with detailed slotting matrices that specify where individual products (SKUs) should be stored based on velocity, size, weight, and other factors.

Material Flow  & Layout Deliverables

• Inventory Analysis Reports:  Reports showing inventory velocity, trends, status, stocking levels, and positioning.
• Updated Floor Plans: Detailed CAD drawings showing proposed locations for receiving, storage (racks, shelves), picking/packing areas, shipping docks, and office space, along with optimized aisle configurations.
• Material Flow Analysis: Documents illustrating how products and materials move through the plant and warehouse, identifying bottlenecks and areas for improved efficiency.
• Equipment & Space Utilization Reports: Assessments of how well existing space and equipment (like forklifts and conveyors) are being used, with recommendations for better utilization or new technology.
• Safety & Ergonomics Plans: Design elements and recommendations to improve worker safety and well-being, such as proper aisle widths and placement of heavy items.
• Implementation Plan:  Sequenced steps to implement both the new layout and slotting plan along with potential capex purchases.