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.