ACME Warehouse Baseline Analysis

Evaluated warehouse flow, labor allocation, storage utilization, and layout to identify operational bottlenecks and establish a baseline for future facility improvements.
Warehouse Design
Facility Logistics
Operations Analysis
Supply Chain
Author

Luciana Claure Parada

Published

November 20, 2025

Project Overview

This project evaluated the baseline operations of the ACME warehouse to understand how products move through the facility and how labor and storage space are utilized. The objective was to establish a data-driven baseline before proposing operational improvements.

The analysis examined SKU characteristics, product flow, labor allocation, storage utilization, and warehouse layout to identify where resources were concentrated and where efficiency gains could be achieved.


Tools

  • Microsoft Excel
  • Warehouse Flow Analysis
  • Facility Planning
  • Labor Analysis
  • Space Utilization Analysis

Objectives

The project focused on answering the following questions:

  • How are products stored and moved throughout the warehouse?
  • Which operations consume the most labor?
  • How efficiently is storage space utilized?
  • Is the warehouse layout aligned with product demand?
  • Where are the greatest opportunities for improvement?

SKU Characteristics

Objective

Understand the characteristics of inventory stored within the facility.

Key Findings

  • 3,183 SKUs
  • Average SKU volume: 0.279 ft³
  • 12 units per carton
  • 16 cartons per pallet (192 units)

These characteristics explain why warehouse operations rely primarily on carton and each-picking rather than full-pallet movement.


Outbound Flow Analysis

Objective

Measure how products leave the warehouse each day.

Average Daily Shipments

Handling Unit Daily Volume
Eaches 58,695
Cartons 3,354
Full Pallets 49
Total Units 62,098

Key Insight

Nearly all outbound activity consists of individual each picking, making the forward picking area the operational bottleneck.


Labor Analysis

Objective

Determine how labor is distributed across warehouse operations.

Operation FTEs
Receiving 17.8
Put-away 17.0
Order Fulfillment 207.3
Staging 29.1
Shipping 27.2
Total 298.4

Key Insight

Order fulfillment accounts for nearly 70% of total labor, demonstrating that each-picking drives most warehouse workload.


Storage Utilization

Objective

Evaluate how efficiently pallet positions are used.

Results

Storage Strategy Utilization
Separate pallet locations 79.9%
Consolidated partial pallets 85.4%

Allowing compatible partial pallets to share storage locations increases capacity without expanding warehouse space.


Warehouse Layout

Baseline Configuration

  • 50 aisles
  • 4 rack levels
  • 47,200 pallet positions
  • 11,800 forward-pick locations

SKU allocation:

  • A Items — 40%
  • B Items — 35%
  • C Items — 20%
  • D/E Items — 5% (reserve storage)

Recommendation

Reserve the most accessible locations for high-velocity SKUs to minimize travel distance and improve picking productivity.


Key Findings

The analysis identified several opportunities for operational improvement:

  • Warehouse operations are dominated by each-picking.
  • Order fulfillment consumes approximately 70% of warehouse labor.
  • Consolidating partial pallets improves storage utilization by more than 5 percentage points.
  • Forward picking should prioritize high-velocity SKUs.
  • Existing warehouse resources can be utilized more efficiently without expanding the facility.

Skills Demonstrated

  • Warehouse Design
  • Facility Planning
  • Labor Analysis
  • Storage Optimization
  • Warehouse Flow Analysis
  • Industrial Engineering
  • Supply Chain Analytics

Conclusion

This baseline assessment established a comprehensive understanding of warehouse operations by analyzing inventory characteristics, material flow, labor allocation, storage utilization, and facility layout. The findings provide a quantitative foundation for future warehouse redesign initiatives and operational improvements.