Eight core rules for pallet locations optimization

Traditional warehouse operation management often places goods in the nearest available space when the goods arrive or takes no account of the dynamic changing needs of goods and changing customer demand patterns, and carries on the habit and experience of placing goods for many years.Traditional layout results in slow process, low efficiency and insufficient space utilization.However, the new goal of modern logistics, especially in the supply chain management mode, is: to do more work with the same labor or cost;Use value-added services to convert warehouse from capital intensive to labor intensive industries;Reduce order fulfillment time, provide faster and more considerate service.

An optimized management of warehouse space has been proposed that is closely related to so-called "warehouse key performance indicators", namely productivity, delivery accuracy, inventory turnover, warehousing time, order fulfillment time, and storage density.Cargo space optimization management is used to determine the appropriate storage mode of each product regulation, and the allocation of space storage space under the appropriate storage mode.The optimized management of cargo space pursues different equipment and shelf type characteristics, goods grouping, cargo space planning, labor cost built-in and other factors to achieve the best cargo space layout, effectively grasp the changes of goods, and maximize the cost savings.

Location optimization management explores the efficiency and cost of an operating warehouse and prepares for critical pre-operation management of a distribution center or warehouse under construction.
Because there are few professional warehouse management systems and computer systems in the market that can support the optimized storage space management, about 80% of the distribution centers or warehouses currently cannot carry out the correct optimization of the cargo space.The main reason lies in the lack of basic data, there is no correct optimization software and method.

Aimed at the actual needs of modern warehouse, like warehouse management software research and development of WMS system after the implementation of the professional deployment, not only improve efficiency of storage and shipment, also can through the batch of goods, volume, quality control, slow degrees, day cherry-pick content, day in and out of the measured data is analyzed and calculated, such as combined with a variety of strategies, greatly reduce the cost of goods distribution.

Whether it is commercial software or self-developed, the goods position optimization must have the following basic functions:
● grouping goods according to built-in goods attributes or custom attributes;
● evaluate and recommend the best and available space for each item;
● adjust the status of facilities when goods classification and attributes change;
● mobile execution configuration required to transform the warehouse from an inefficient state to a functional optimization state;
● 3d graphical or digital analysis results output;
● cycle liquidity of the cargo position optimization.According to the circulation in a certain period of time, such as year, season, month and so on, and according to the volume of goods to determine the storage mode and storage space under the storage mode.
● sales volume of the goods position optimization.Storage mode and space allocation are determined based on shipments per period of time.
● cargo space optimization per unit volume.According to the unit volume of a commodity, such as pallet, box or container and the volume of goods to carry out division and integration.
● sorting density of cargo location optimization.Commodities with high sorting density should be placed in the gold area as well as the picking surface which is the easiest to pick.
Generally, the optimization of cargo space is an optimization and simulation tool, which can operate independently of the warehouse management system WMS.Therefore, it is a good way to use the strategy comprehensively or alternately to achieve satisfactory results in the virtual warehouse space before physical implementation.

It is difficult to describe the calculation of goods position optimization by digital formula and digital model.The rule ACTS as a constraint when the data converges to the target.Most of the rules are generic, and even an ordinary warehouse does not allow goods to be stored randomly or without planning.However, different distribution centers or warehouses will make several special rules according to their own characteristics and special attributes of commodities.

Rule 1: based on turnover.The goods are sorted according to the turnover rate, and then the goods are divided into several segments (usually three to five segments). The goods in the same segment are classified into the same level. According to the principle of positioning or classification storage, the storage area is designated for each level of goods.

Rule 2: product relevance rule.This can reduce the length of the extraction journey, reduce the fatigue of the staff, simplify the inventory work.The relevance of the product can be analyzed using historical order data.

Rule 3: the law of product identity.The principle of identity refers to the principle of storing the same item in the same storage location.It is one of the basic principles to improve the operation productivity of logistics center when the operator can know the storage location of the goods simply and the access of the same goods takes the least handling time.Otherwise, when the same goods are distributed in multiple locations in the warehouse, it is not convenient to store and take out the goods. Even in the process of inventory taking and the degree of mastery of the goods on the rack may cause difficulties.

Rule 4: principle of product complementarity.Complementary goods should also be stored in close proximity so that they can be quickly replaced in case of a shortage.

Rule 5: the law of compatibility.Low compatibility products should not be placed together, so as not to damage the quality.

Rule 6: size rule.In the layout of the warehouse, we take into account both the unit size of the items and the shape of the whole batch due to the same group of items, so that the appropriate space can be supplied to meet a specific requirement.Therefore, in the storage of items, there must be a change in size and location to accommodate different sizes of items and different volumes.This law allows the storage quantity and location of the goods to be appropriate, so that the rapid transfer of the work and time can be reduced.Once the unit size of storage items is not considered, the storage space may be too large and waste space, or the storage space is too small and cannot be stored;Not considering the storage of the whole batch shape may also cause the whole batch shape is too big to be stored in the same place.

Rule 7: weight characteristics rule.The so-called weight characteristic principle refers to the different weight of the item to determine the high and low position of the storage space.Generally speaking, heavy objects should be kept on the ground or the lower part of the rack, while light objects should be kept on the upper part of the rack.When handling by hand, the height below the waist is used for keeping heavy or large items, while the height above the waist is used for keeping light or small items.

Rule 8: product feature rule.The characteristics of the goods not only involve the risk and corrosion of the goods themselves, but also may affect other goods, so the layout of the logistics center should be considered.

Rules can be formulated based on both common and individual characteristics. For example, drug warehouses must meet the requirements specified by GSP.When the rules are made, the priorities between the rules must also be clear.

More sorting surfaces can be realized in a small amount of space by optimizing the cargo space.For the goods with large circulation, it should meet the needs of human engineering and smooth and convenient access to improve the operating efficiency.For those goods that do not move quickly, the hope is that they will take up less space so that there are more kinds of goods to be sorted in a small area, thus reducing the distance to pick.

In short, it is to improve efficiency, space utilization, and ultimately reduce costs