35% Reduction in picking errors
ManufacturingWarehouse Management
Warehouse Redesign Recovers 32% Floor Space Without Capital Expenditure
A mid-size manufacturer was paying for off-site storage due to perceived space constraints. A systematic warehouse analysis revealed significant recoverable capacity through slotting and flow redesign.
32%
Floor space recovered
0
Capital expenditure required
18%
Pick path distance reduction
The Challenge
- Off-site storage facility leased at $12,400/month for components that 'wouldn't fit' in the main warehouse.
- No formal slotting strategy — fast movers and slow movers interleaved, adding unnecessary travel time per pick.
- Warehouse layout unchanged since facility opened 11 years prior despite significant product range evolution.
The Solution
- ✓Conducted full SKU velocity analysis across 12 months of pick data to classify fast, medium, and slow movers.
- ✓Redesigned slotting using velocity-based zone allocation — top 15% of SKUs placed in a dedicated golden zone.
- ✓Reconfigured racking layout to create a continuous pick flow path, eliminating cross-aisle dead zones.
- ✓Moved 340 slow-moving SKUs to vertical storage, freeing floor space equivalent to the off-site lease footprint.
Key Outcomes
32%
Floor space recovered
0
Capital expenditure required
18%
Pick path distance reduction
Industry
Manufacturing
Solution
Warehouse Management
Client
Industrial Components Manufacturer
Warehouse OptimisationManufacturingLayout
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