transformation of warehousing

transformation of warehousing

Factors to Consider in Intelligent Upgrading and Transformation of Warehousing

In the past, the warehouse is just a place for enterprises to store goods; later, the warehouse, as an important link connecting the whole transaction chain of enterprises, has put forward higher requirements in terms of work efficiency and cost control.

If enterprises want to develop further, traditional warehouses must be upgraded and transformed. Only in this way can they meet customers’ higher logistics and distribution requirements, and have a place in the industry with high-quality logistics services.

Reasons why existing warehouses need to be renovated

Business changes, unreasonable layout planning and equipment selection of the original warehouse, low degree of automation of the original warehouse, need to meet more storage and throughput, aging of warehouse equipment and infrastructure, rising labor costs and technological advancement of warehouse equipment and other driving factors.

Analysis on warehouse renovation and upgrading

First of all, if we want to make a statistics of existing warehouses, a large part of the warehouses are traditional warehouses. Features include the following aspects:

1. The area is relatively small

2. Firefighting does not comply with regulations and automatic sprinkler systems are rarely used.

3. Many floors are very low and have many floors.

4. The peripheral roads are narrow and the platforms do not meet the requirements.

5. The degree of automation is very low or basically non-existent, and there is a strong demand for warehouse renovation in this part of the country.

But no matter how many situations there are, one thing remains unchanged: the infrastructure of the warehouse – civil engineering and construction has been completed, and renovation can only be carried out on the existing basis, which is completely different from building a new warehouse.

Several suggestions for warehouse transformation and upgrading

1. The design must comply with specifications and adapt to local conditions.

The design must comply with specifications and be adapted to local conditions; the foundation and floor bearing capacity must be fully evaluated. This aspect imposes many restrictions on the transformation and use of warehouses. It is also important to fully evaluate power distribution. Modern warehouses will be equipped with more automated equipment than traditional warehouses, so power distribution must be sufficient.

2. Equipment selection must be appropriate

Choosing the right equipment is especially important for warehouse renovation. Avoid copying mechanically, and fully consider the limitations of objective conditions such as floors, column grids, and floor heights, and select the most appropriate technology and equipment.

Typical examples include automated three-dimensional warehouses, conveyors, sorters, etc. In addition, equipment such as goods-to-person picking systems, AGVs, and robots should be selected based on actual requirements.

3. Information systems must meet business needs

Information systems include WMS, WCS, etc., which are the core of modern logistics systems. What kind of software to choose mainly depends on the maturity and adaptability of the software.

Key points that should be controlled during warehouse renovation and upgrade

Enterprise warehouse upgrading and transformation need to follow scientific methodologies and steps, and enterprises must be clearly aware of the complexity of warehouse transformation and upgrading. It is recommended that enterprises should control the following four key points when implementing logistics warehouse renovation projects:

1. Warehouse upgrades and renovations should be based on the company’s business needs and operational requirements. It is best to analyze the warehouse operation data of the past one to two years and combine it with business processes to find out the bottlenecks of operational efficiency for key optimization. When selecting warehouse equipment, don’t pursue the more advanced the better. Choose a warehouse upgrade and transformation plan that suits the company’s operational needs and constraints while also meeting operational efficiency and flexibility.

2. The upgrading and transformation of logistics warehouses must support the long-term development needs of enterprises. Upgrading the warehousing system is foreseeable and appropriately advanced, and must be able to meet the company’s business needs for at least the next five years. Enterprises must scientifically predict and analyze key data such as future business growth, product order structure, inventory structure, and inbound and outbound quantities.

3. A scientific and flexible project implementation plan must be developed for warehouse upgrading and transformation. The current business market is changing rapidly, and the order structure has undergone unexpected changes. In order to avoid project investment risks, for large-scale logistics automation projects, whether they are new construction or renovation projects, we recommend retaining the ability to flexibly adjust according to changes in business needs, thereby greatly reducing the company’s investment risks.

4. Warehouse upgrades require professional talents to be responsible for implementation and lean improvements. Enterprises need to use external professional consulting agencies to design solutions for the renovation and upgrading of existing warehouses. However, the implementation of the warehouse renovation plan and the improvement of daily lean operations require the support of professional talents within the enterprise.

The service life of the house and the selection of equipment are very important. For example, the service life of some old warehouses is close to the design value. At this time, it is not appropriate to choose highly automated equipment, but should seek equipment that matches it. Such as equipment that can be dismantled and conveniently moved, etc.

As time goes by, the needs of enterprises will continue to change, so it is essential to continuously transform and improve the logistics center.