How To Layout Your Warehouse Locations | Warehouse Management

Summary

In this informative video, Mickey from Lisa's channel explores the optimal warehouse rack arrangements for distributors, including U-shaped, L-shaped, Eye-shaped, and V-shaped configurations. He details the essential areas like receiving, staging lanes, dynamic and static storage, and shipping, emphasizing the importance of each in the warehouse's efficiency. Mickey also discusses the benefits and drawbacks of each arrangement, highlighting how U-shaped maximizes staging and receiving, while L-shaped and Eye-shaped prioritize security and control. Lastly, he explains how the V-shaped arrangement can save up to 20% in picking time, thus increasing sales and warehouse efficiency.

Takeaways

• 🏭 Warehouses have four primary rack configurations: U-shaped, L-shaped, Eye-shaped, and V-shaped, each with unique layouts for different areas.
• 📦 A receiving area is essential for unloading products from vendor trucks and temporarily storing them before counting and validation.
• 🔍 The receiving staging lane is where physical purchase orders are matched with received quantities to check for discrepancies.
• 📏 Directed put away is a method where employees are guided to place products into specific bins, such as overstock or picking bins.
• 🔄 Dynamic storage areas are used for frequently moving products, while static storage areas are for less frequently moved products that may sit for months.
• 📚 The distinction between dynamic and static storage areas is crucial for efficient warehouse management and product flow.
• 🚚 Shipping staging areas are where orders are prepared for shipment, ensuring that the correct quantities are packed and labeled correctly.
• 🛠 The U-shaped configuration is designed to optimize the proximity of the receiving and staging areas, potentially saving time and resources.
• 🔒 L-shaped and Eye-shaped configurations separate shipping and receiving areas for increased security and control over the processes.
• 🛑 V-shaped rack arrangements are proven to optimize picking routes, potentially saving up to 20% in picking time and increasing overall warehouse efficiency.
• 📈 Optimizing warehouse layout and rack configuration can significantly impact operational efficiency and sales by improving product flow and order processing speed.

Q & A

What are the four different types of rack arrangements mentioned in the video?

The four different types of rack arrangements are u-shaped, l-shaped, i-shaped, and v-shaped.

What is the purpose of a receiving area in a warehouse?

The receiving area is where products are unloaded from vendors' trucks or semis and placed on the dock floor. It is the initial stage where products are received into the warehouse but have not yet been counted.

What happens in the receiving staging lane?

In the receiving staging lane, someone takes the physical purchase order and validates the quantities received to ensure there are no discrepancies between what was ordered and what is about to be put away in the warehouse.

What are the two types of put away processes mentioned?

The two types of put away processes are directed put away and non-directed put away. Directed put away shows the warehouse employee how to take the pallet of product from the receiving staging area and put it away into a bin.

What is the difference between a dynamic storage area and a static storage area?

A dynamic storage area is used for products that move frequently, are picked, and rotate regularly. It includes put away bins and picking bins. A static storage area is meant for products that do not move frequently and can sit for a couple of months.

What is the purpose of the shipping staging area?

The shipping staging area is where products are staged in bins until the ship date of the order arrives. It ensures that orders are organized and ready to be shipped out efficiently.

How does the shipping staging lane function?

The shipping staging lane is used to count and validate the contents of an order, ensuring the correct quantities are present. Products are packed into boxes, labeled, and then shipped out.

Why might some warehouses prefer an l-shaped or i-shaped rack arrangement over a u-shaped one?

L-shaped or i-shaped rack arrangements are preferred for better control and security. They help to separate the shipping and receiving areas, reducing the possibility of errors and allowing for better monitoring of each process.

What is the primary advantage of the v-shaped rack arrangement?

The v-shaped rack arrangement is designed to optimize picking and put away routes, saving up to 20% in picking time and speed, which increases the warehouse's efficiency in handling and shipping products.

What should a warehouse optimize if they have a larger sorting process?

A warehouse with a larger sorting process should optimize their staging and sorting areas, likely using l-shaped or i-shaped rack arrangements to handle the increased need for space and manpower in counting and sorting products.

Outlines

00:00

🚀 Introduction to Warehouse Rack Arrangements

In this video, Mickey introduces how distributors arrange racks in a warehouse to optimize receiving, picking, and shipping processes. There are four types of rack arrangements: U-shaped, L-shaped, I-shaped, and V-shaped. Despite the variations, common areas exist within each configuration, with slight differences in layout. The video will cover these areas and configurations in detail.

05:02

📦 Receiving Area and Receiving Staging Lane

The receiving area is where products are unloaded from vendors' trucks and placed on the dock floor. Once received, products move to the receiving staging lane for quantity validation against purchase orders. This ensures no discrepancies before products are put away in the warehouse.

🔄 Receiving Staging Area and Put-away Process

The receiving staging area, located next to the receiving staging lane, holds products after counting. The put-away process involves two types: directed and non-directed. Most clients use directed put-away, guiding employees to place products in either overstock or picking bins. This area includes dynamic and static storage areas.

📍 Dynamic vs. Static Storage Areas

Dynamic storage areas contain bins for products that move frequently, including put-away and picking bins. Static storage areas hold products that move less frequently, sometimes transferring to dynamic areas. The focus is on efficient product storage and retrieval, depending on product movement frequency.

🚚 Shipping Staging Area and Shipping Staging Lane

Once orders are picked from the dynamic storage area, products move to the shipping staging area. Here, products await their shipping dates, organized in bins until they are transferred to the shipping staging lane for final checks. This lane ensures correct quantities before packing and shipping.

🛠️ U-Shaped Rack Arrangement

The U-shaped configuration places receiving and shipping areas next to each other, sharing resources and saving time. It allows for larger dynamic and static storage areas at the back of the warehouse. However, the proximity of high-movement areas can lead to errors, making it less preferred by some.

🔄 L-Shaped and I-Shaped Rack Arrangements

L-shaped and I-shaped configurations separate shipping and receiving areas for better control and security. These layouts are ideal for businesses with extensive sorting and counting needs, as they allow for larger staging areas and improved monitoring of the receiving and shipping processes.

📈 V-Shaped Rack Arrangement

The V-shaped configuration optimizes picking and put-away routes, saving up to 20% in picking time and speed. This setup increases warehouse efficiency by allowing faster product flow and increased order processing. The layout mirrors the U-shaped arrangement but focuses on speed optimization.

💡 Conclusion and Next Steps

Mickey summarizes the different rack configurations and their respective advantages. He encourages viewers to ask questions and engage in the comments. The next video will focus on optimizing picking speed. Viewers are asked to like the video and stay tuned for more content.

Keywords

💡Distributors

Distributors are entities that manage the supply chain process of delivering products from manufacturers to retailers or directly to consumers. In the video, the term refers to businesses that arrange their warehouse racks to optimize the flow of goods from receiving to shipping. The script discusses how distributors use different rack arrangements to streamline their operations.

💡Rack Arrangements

Rack arrangements refer to the physical layout of storage systems within a warehouse. The video outlines four types of rack arrangements: U-shaped, L-shaped, eye-shaped, and V-shaped. Each arrangement has its own advantages and is designed to optimize different aspects of the warehouse's operations, such as receiving, picking, and shipping.

💡Receiving Area

A receiving area is a designated space in a warehouse where goods are initially unloaded from delivery vehicles. The script explains that this area is crucial for the initial intake of products, which are then transferred to a receiving staging lane for further processing, illustrating the importance of this area in the warehouse's workflow.

💡Receiving Staging Lane

The receiving staging lane is a specific area where the quantities of received goods are validated against purchase orders. The script mentions this as a critical step to ensure there are no discrepancies between the ordered and received products, highlighting its role in maintaining inventory accuracy.

💡Directed Put Away

Directed put away is a warehouse management strategy where employees are guided on where to store incoming products. The script describes this as a method used by most clients, showing the pallet of product being placed into designated bins, which can be either overstock or picking bins, emphasizing the importance of organized storage.

💡Dynamic Storage Area

Dynamic storage areas are sections of a warehouse designated for products that have a high turnover rate. The script explains that these areas typically contain put away bins and picking bins, which are used for products that are frequently moved or picked, indicating the need for easy access and frequent replenishment.

💡Static Storage Area

Static storage areas are used for storing products that do not move as frequently. The video script describes these areas as places where products can sit for extended periods, such as months, without needing to be moved, suggesting that these products have a lower demand or are less time-sensitive.

💡Shipping Staging Area

A shipping staging area is a designated space where orders are prepared for shipment. The script describes it as a wall full of bins, each containing an order ready to be shipped out, indicating its role in the final stages of order fulfillment before dispatch.

💡Shipping Staging Lane

The shipping staging lane is an area where the final checks of an order's contents are made before it is packed and shipped. The script emphasizes its importance for double-checking the order's accuracy and for physically packing the products into boxes, ensuring that the right items and quantities are being sent out.

💡U-Shaped

U-shaped is one of the rack arrangements discussed in the video, designed to place the receiving and staging areas next to each other for resource sharing and time-saving. The script mentions that this arrangement allows for larger dynamic and static storage areas but also notes the potential for errors due to the proximity of high-movement areas.

💡V-Shaped

V-shaped is another rack arrangement mentioned in the script, which positions racks in a V formation to optimize picking and put away routes. The video claims that this arrangement can save up to 20 percent in picking time and speed, thereby increasing the efficiency of the warehouse operations and the ability to process more orders.

Highlights

Introduction to different types of rack arrangements: U-shaped, L-shaped, I-shaped, and V-shaped.

Explanation of the receiving area where products are unloaded from trucks and placed on the dock floor.

Description of the receiving staging lane where physical purchase orders are validated.

Detail on the receiving staging area, which queues products for put away.

Difference between directed put away and non-directed put away, with most clients using directed put away.

Overview of dynamic storage areas with put away bins and picking bins.

Explanation of static storage areas for products that do not move frequently.

Process of picking orders from the dynamic storage area and staging them in the shipping staging area.

Function of the shipping staging lane, including double-checking orders and packing products.

Comparison of U-shaped, L-shaped, and I-shaped rack arrangements, focusing on advantages and drawbacks.

U-shaped arrangement is designed to optimize staging and receiving with larger dynamic and static storage areas.

L-shaped and I-shaped arrangements are chosen for higher security and control in sorting and put away counting.

Introduction to the V-shaped rack arrangement, optimizing picking and put away routes.

V-shaped arrangement can save up to 20% in picking time, enhancing warehouse efficiency.

Summary of the main points and encouragement for viewers to ask questions or give feedback in the comments.

Transcripts

what's up everyone welcome back to lisa

channel my name is mickey in this video

i'm going to show you how my

distributors arrange their racks within

the warehouse it's going to allow you to

optimize your future warehouse for

receiving picking and shipping anyways

let's get right into it

so all of my distributors have four

different types of rack arrangements

u-shaped l-shaped eye shaped and

v-shaped and within these four

configurations there are different areas

now the crazy thing is the areas persist

across all of the rack arrangements but

within each of the rack arrangements

there is a slight twist in how these

areas are laid out but first let's start

with the actual areas that you need to

have in your warehouse first and

foremost there is a receiving area a

receiving area is simply where you

unload product from one of your vendors

trucks or semis and place it on the dock

floor

at this stage product has been received

into what we call a receiving area but

it has not yet been counted this is

where it gets transferred from the stock

floor to what we call a receiving

staging lane

this receiving staging lane is actually

the place where somebody's going to take

the physical purchase order and validate

the quantities received to ensure that

there's no discrepancies between what

you ordered and what's about to get put

away in your warehouse

which is a good segue into the receiving

staging area so the receiving staging

area normally sits right next to the

receiving staging lane the moment the

product is counted

it's queued up

in the receiving staging area so that it

can be put away at this stage there's

two types of photo waves a directed put

away and a non-directed put away most of

my clients use a directed put away

that's going to show the warehouse

employee how to take the pallet of

product from the receiving staging area

and put it away into a

bin of some kind whether it's an

overstock bin or a picking bin and this

is a good segue into the type of areas

for racks and bins that there are in the

warehouse there's normally two areas

there's a dynamic storage area and last

but not least a static storage area in

the dynamic storage area you normally

have two types of bin put away bins and

picking bins this is normally used for

product that moves that gets picked that

rotates whereas the static storage area

is meant to store product that doesn't

move that frequently product that could

sit there for a couple months that is

what the static storage area does and

normally this static storage area

sometimes not normally i apologize about

that but sometimes transfers from the

static to the dynamic

now when we're picking an order and

we're picking from this dynamic storage

area we need to stage this product

somewhere

once it's staged it goes into a shipping

staging area this shipping staging area

imagine a put wall a wall full of little

bins each containing an order that is

eventually going to get shipped out to

one of my clients

in the shipping staging area the product

resides until the ship date of the order

arrives at which point product will get

pulled from the shipping staging area

and will get transferred to

what we call a shipping staging lane

now this shipping staging lane is super

important because it's the double check

of what's going to get shipped out and

it's the physical packing into a box of

a product this shipping staging lane is

used to count what's on the order to

ensure that the correct quantities are

indeed in that

little bin and then you remove the

product from the bin you place it into a

box and you

wrap the box and tape or whatever maybe

attach a shipping label and ship it out

now these are companies that do shipping

for companies who do distribution this

shipping staging lane is utilized to

validate the contents of an order or

multiple orders on a set of pallets

going onto a truck

now right before the product actually

goes out the door onto the truck it has

to go to the shipping area the shipping

area itself is the floor on the dock

again just like the receiving area where

product will reside for a moment until

it's loaded out basically until it

crosses that threshold of your door from

inside your warehouse until the outside

pretty straightforward now all of the

different rack configurations in the

world have these different areas now the

question is what are the different

configurations and arrangements well

there is a u-shaped the u-shaped is

quite straightforward the u-shift is

designed to put the staging area and the

receiving area right next to one another

so that both can utilize each other's

resources i.e equipment manpower and so

that both can save time together

now the beauty of having this u-shaped

warehouse is that you're able to create

in the back of the warehouse much larger

dynamic storage areas and static storage

areas which tends to be an advantage

above and beyond the l-shaped and the

eye shaped but

and this is a big bud anytime you have

two

areas with so much movement right next

to each other there is a possibility a

propensity even for there to be errors

and mistakes that's what happens when

you have a receiving and a shipping bin

or area right next to one another which

is why sometimes the u-shaped rack

arrangement is not always preferred and

that is why some people

opt for an l-shaped or an eye shape

these are the people that want control

more specifically people who offer an

l-shaped or an eye shaped and l shaped

for starters literally has an l product

comes in this way goes out this way i

shaped a straight product comes in up

here and goes out down here pretty

straight forward now why would anybody

opt for these things and opt to separate

my shipping and receiving areas from one

another well i think it's quite

straightforward this these two

configurations are used for those that

want to have a certain level of security

they want to be able to monitor both the

receiving the picking and the shipping

process is completely different to rule

out the possibility that anybody could

be taking advantage of both receiving

and shipping at the same time this is

quite brilliant if you think about it

but that's not the primary reason why

people go for these warehouses they go

for these warehouses because they've got

different needs than those that have the

u-shaped warehouse people who go for

these warehouses normally have a bigger

sorting process meaning they've got more

orders coming in being counted right and

being put away so the accounting process

of the receiving portion of the process

is the most important as well as the

accounting process of the shipping so

maybe the accounting process i.e taking

a product from a staging bin okay and

from a shipping staging bin and putting

it onto the shipping staging lane

requires a lot more manpower and a lot

of space so people who want to optimize

for sorting and put away counting let's

call it they would go for these l-shaped

or eye-shaped type warehouses not to

mention

people that also want to have larger

staging areas they go for these types of

warehouses so pretty straightforward

u-shaped is meant to optimize staging

and receiving l-shaped and eye-shaped is

meant to optimize either your staging

area or your sorting area and to keep

all of the areas separate so that

there's a higher degree of security and

control

so last but not least is what we call

the v-shaped

rack arrangement the v-shaped rack

arrangement even though it contains the

same areas what it does is it positions

your racks in vs now the objective of

this is to optimize the picking route

and the put away routes and it's been

scientifically proven that by having

these v-shaped rack arrangements you can

save an upwards of 20 percent in terms

of picking time and speed that means

that every day you should be able to get

20 percent more orders out which means

that you're gonna in increase the

ability to flow through product and

increase sales because if you can flow

out product as fast as possible that

means that you can put away new product

as fast as possible and your warehouse

becomes that much more efficient so this

v-shaped i'll go ahead and link a video

down below that shows you just how much

it optimizes speeds

but in regards to the areas themselves

they're pretty much you know laid out in

the same way as the u-shaped where you

have both the receiving and the shipping

below and then above in the v's you've

got your dynamic and your storage bins

and um

basically this configuration is only

designed to optimize your speeds it's

not really a new breakthrough

configuration or layout of your actual

areas so anyways guys look um i wanted

to just give you an idea of the

different areas and the different rack

configurations in a warehouse if you've

got any questions additional points

concerns hit me down below in the

comments or give me a thumbs up i'm

really looking forward to a thumbs up

because i want to keep making content

like this for you guys all the time

anyways apart from that i look forward

to seeing you on next video where i talk

about how to actually optimize picking

speed anyways take care

[Music]

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