Warehouse 2020 Survey Analysis - Cirrus Logistics

Warehouse 2020 Survey Analysis

10 interesting facts about warehouse design

The Warehouse 2020 survey conducted by Cirrus Logistics Ltd. was completed by 59 warehousing professionals. It was designed to gain a better understanding of the current approaches towards warehouse design and to learn what warehouse challenges will need to be taken into consideration in the future. Respondents were mainly based in Europe, primarily the U.K., but a significant number of responses and valuable opinions were shared from the rest of the world.

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Warehouse 2020 Survey Analysis

01WAREHOUSE 2020 SURVEY RESULTS


The majority of respondents, more than

46%, were Warehouse Solutions Designers,

followed by Consultants (19.2%), Operations

Managers (9.6%) and Architects (1.9%).

‘Other’ category included Project Managers,

Process Specialists, etc.

Depending on the size of the company,

scale of the operations, or the characteristics

of the industry, warehousing professionals

design from 0 to 11+ new warehouses each

year. A large proportion (40%) design 2-5

warehouses, followed by 0-1 (21%), 11+

(19%), and 6-10 (17%) each year.


Results

WH Designer46%

Consultant19%

40%

30%

20%

10%

0%

None 0-1 2-5 6-10 11+

Architect2%

Op Manager10%

Other23%

What best describes your role?

How many Warehouses do you design each year?



9.62% of respondents always use a common

template for the design and 53.85% use a

template sometimes. Templates may speed up

the design process but risk compromising the

opportunity to identify the optimal solution. It is

therefore good to see that 36.54% of

designers always start from a clean sheet of

paper.

Only 3.85% of respondents have all the data

they need to design a warehouse, the majority

78.85% use their own judgement to fill in the

missing information. Some designers rely

purely on their own experience, with 17.31%

claiming to create all the data they need from

experience. Some missing information such as

time and travel distances can be overcome

where the designer is using a spatially aware

modelling tool.

80.77% of the respondents use Spreadsheets

for warehouse design either partly or entirely.

Spreadsheets are useful tools for preparing

data to be imported into a computer modelling

application but cannot be used for a detailed

design project on their own. Nearly half of the

respondents currently use CAD software,

followed by 44% of all users using computer

modelling software. A few of the respondents

have stated that they do not use any software

for the design, which may reflect the nature of

their jobs. Several professionals have answered

that they currently use CLASS Warehouse

Layout Simulation Software provided by

Cirrus Logistics.

Always 9.62%

Sometimes

Spreadsheets

53.85%

36.54%

17.31%

78.85%

80.77%

48.08%44.23%

3.85%

3.85%

No

I create my own data,based on my previous

experience

Do you have a common template that is the basis for all your designs?

When you design a warehouse do you usuallyhave access to all the data you need?

Which of the following applications doyou use when designing a warehouse?

I have most of the data and use my judgement

on what is missing

I always have all the data I need

CAD Software

Computer modellingsoftware

I don’t use any software



According to our survey, only a quarter of

respondents create the design on their own,

whereas the majority work as a team with

external consultancy, Sales & Operational

Planning, or other team members. Some of

them have indicated that whether they work

on their own or collaboratively depends on

the type of the project.

Testing the warehouse design is crucial in ensuring that the final design can support the Supply Chain at the

operational level. Spreadsheet is the most widely used tool for this purpose (71.15%), whereas less than half of the

respondents test their designs by simulation. Since simulation is the only thorough way of testing the design, the

results may suggest that larger than needed design margins are used to compensate for the use of data. aggregation

and averaging. Two-thirds of the professionals have answered that they have the designs checked by an operations

team, and 30% of all the respondents will consult an experienced designer.

I work in consultationwith the sales and

operational planning27%

I work with an external agency

6% I create the design on my own

21%

Do you create the design working as part of a team?

The design work is shared as a team

46%

Checked by operations team 67.31%

Checked by an experienced designer 30.77%

46.15%Computer simulation

Spreadsheet calculation

How do you test your design, select all that apply?

71.15%

I work in consultationwith the sales and

operational planning27%

I work with an external agency

6% I create the design on my own

21%

Do you create the design working as part of a team?

The design work is shared as a team

46%

Checked by operations team 67.31%

Checked by an experienced designer 30.77%

46.15%Computer simulation

Spreadsheet calculation

How do you test your design, select all that apply?

71.15%



To our question regarding the expected review frequency of the warehouse design,

77% of the respondents answered that the design will be reviewed continually, and

improvements made. A few of the respondents will review the design once a year,

whereas 15% of all users do not plan to update the design upon implementation. This

question may also reflect that a lack of thoroughness in testing results in the designer

revisiting the designer once it is operational. In Cirrus’ experience even the best

design should be revisited at least annually, to ensure the warehouse is capable of

meeting projected strategic requirements.

The design will continually be reviewed and improvements made

The design will be reviewedonce a year

The design is unlikely to change

15%

77%

8%

How frequently will you review the design after it has been implemented?



Future of Warehousing

With constantly evolving demands, supply chains and their warehouses are put under

greater pressure to be more agile and resilient. In this section, we have collected

some interesting opinions from the professionals on how the warehouses will or

should change to absorb market needs.

A majority of warehousing professionals agree, to a certain extent, that warehouses

‘will need to increase performance efficiency’, ‘will require more flexible storage

solutions’ and ‘will perform more processing functions’. Some of them believe that

warehouses ‘will get smaller’ (13.6%) or ‘will get bigger’ (38.56%). Moreover, some

commented that ‘the differentiator will be added value service (non standard

warehouse operations)’, which highlights the increasing role warehouse design can

play to make companies stand out in the market.

Requirements will stay the same 0.00%

Which of the following warehouse trends do you agree with?

Other (please specify) 11.54%

Will get smaller 13.46%

Will get bigger 38.46%

Will perform more processing functionsie. configuration or finishing of products

65.38%

Will require more flexible storage solutions 71.15%

Will need to increase performance efficiency 75.00%


Innovations and technological advancements in warehouses are indisputably key

themes regarding the future of warehouses. Whilst most respondents (85%) agree

that ‘automation of picking and sorting’ will increase in the coming years, some are

sceptical about the likelihood of the increased usage of ‘automated guided vehicles’

or ‘wearable technologies’. Some interesting comments included: ‘In the next 3

years, traditional warehouses shall convert to semi-automatic (50% automation) and

semi-automatic to at least 80% automation of storage and handling’ and

‘autonomous moving robots will be working in parallel with humans’.

How will technology change within the warehouse?

Staff will have more wearable technology 67.31%

Warehouses will use more automationof picking and sorting 84.62%

Warehouses will use more automatedguided vehicles 65.38%

Other (please specify)


What challenges will warehouses face in the future?

Professionals have further identified some of

the challenges warehouses may face in the

future:

Warehouses are constantly under pressure to

achieve more with less resource

Keeping costs down

Providing the shortest possible (market

- acceptable) lead times

Achieving better service levels

Minimising their environmental footprints

These objectives are challenged by:

The slow ROI (Return on Investment) of

technology improvements

Constraints in physical space and personnel

Visibility in demand as a consequence of

rapidly evolving customer expectations,

increased product ranges or product

returns, etc.

Staying up-to-date with the latest

technology, ensuring seamless integration of

the technologies and stretching the

capabilities of automation will be the key in

brining success

Network security



Conclusion What does this survey tell us?Warehouse design requires a combination of tools for layout drawing, data manipulation, and simulation. It also necessitates smooth collaboration for the team members to exchange ideas and contribute to the design. We have seen that the warehouse design process tends to be a team activity, involving logistics professionals, designers and consultants from outside the organisations. Lastly, data is inevitably missing in the process, which can lead to over simplification of the model. However, it was good to see the adoption of design tools which utilise inbuilt warehousing standards and warehousing datasets that reduce the amount of data needed without compromising the result.

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US Office286 South Main Street, Suite 100Alpharetta, GA 30009 USA

Cirrus Logistics

Cirrus Logistics is a highly innovative leader

in the application of simulation techniques in

warehouses and the wider supply chain.

CLASS is the leading ‘off the shelf’ software

product, written exclusively for warehouse design

and simulation modelling. It is used by the top

logistics companies as the “tool of choice” to

identify cost efficiencies in the warehouse and

as a test-platform for introducing operational

innovation. It is used for new builds, to test the

design before the building process begins, and for

operational improvements at an existing site.

CLASS allows users to design, test and re-

design complex warehousing solutions in a virtual

computer environment by changing many different

parameters and measuring their impact:

Assess warehouse layout changes and their

effect on productivity

Identify throughput capacities and bottlenecks

Review the impact of different pick-face profiling

or different picking methods

Estimate resource requirements, shift patterns

and equipment availability

Quantify costs and service levels by simulating

daily receipts and despatch profiles

CLASS is pre-loaded with all the tasks needed in

a warehouse – from unloading vehicles, putting

away product, through to order picking, pallet

building, vehicle loading and despatch, and all

the processes in between. It models both manual

warehouses and automated warehouses.

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Warehouse 2020 Survey Analysis - Cirrus Logistics

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