About Warehouse Design Report 2022

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Introduction
Warehouses are among the essential part of the supply chain and logistics system. The makeup
of 20% of the overall logistics cost. In the US, the operation cost of a warehouse is 20%, and in
Europe, it accounts for 25% of the operations costs. This shows their importance from the cost
perspective. Thus, they should be effectively and efficiently designed, and their functions should
be in high-performance levels to minimize the operations costs and to ensure efficiency.
Although most of the time, warehouses are related to their high price, an optimal and well-
managed warehouse management system is needed, and it is critical to the modern concept of a
supply chain system (Ekren 2020). It plays a crucial role in managing successful business
operations and logistical processes. At the same time, customers visit the warehouse, make
orders which should be picked, transported, and delivered to the pickup points of the customers.
Furthermore, several missions require to be optimally managed. They include realizing the
transportation economies, providing the market with various product mixes, ensuring
manufacturing companies achieve production economies, provide products buffer location, and
provide a temporary place of materials for recycling or disposal.
An adequately managed warehouse enjoys easy access to the market, efficient product delivery
time, sufficient storage space, and good physical location. It is essential to improve the overall
efficiency of the warehouse's functionality and management to make sure that the inventory
levels are properly managed and are reduced as much as possible. To fulfill this objective and
obtained a well-managed and functional warehouse, there are several critical factors to consider
when analyzing the overall warehouse performance (De Koster, Johnson, and Roy, 2017). These
factors include workforce turnover, on-time delivery, product distribution cost, customer order
picking accuracy, and the total inventory capacity.

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One of the critical factors that can significantly impact the overall performance of a warehouse is
warehouse designing. Getting a perfectly designed warehouse will decrease the warehouse area.
It will minimize the traveling time, and the distance covered and properly selecting the best route
to pick orders will significantly reduce the overall operation costs. Because among the prominent
users of the total warehouse costs, time, and labor is order picking, it can be improved by
developing a functional warehouse design (Di Tria, Lefons, and Tangorra, 2017). During the
redesigning process of a warehouse, various factors are thus affected. This report will highlight
various managerial factors that are affected by the redesigning of the national fulfillment center
at Cranfield Business Supplies.
Fulfillment center
Fulfillment centers make it possible for eCommerce merchants to outsource warehouse services
and product shipping services. This relieves them from creating unnecessary physical storage
spaces to keep the products. This is beneficial to the merchant with limited ability to manage
their inventories. Warehouses have numerous functions in the modern commerce sector. some of
the tasks performed by warehouses are illustrated in the figure below

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