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Operational audit | Warehouse optimization

January 23, 2023 43 Views

The Rotterdam Polymer Hub (RPH) is part of the Euro-Rijn Group, which is a global logistics service provider. RPH is located at the Maasvlakte and is specialized in the storage and handling of polymer products.

Opportunities

RPH identified that they had reached their maximum handling capacity for incoming and outgoing trucks, while their storage utilization was relatively low. For a logistics service provider this equals missed revenues, as a large part of their business model is to rent storage services. To eliminate this handling capacity bottleneck, RPH asked Groenewout to help them redesign their warehouse layout. 

Solution

After a site visit and a high-level data analysis the following redesign elements were advised:

  • A reduction of pallet racking in exchange for increased staging capacity. The original staging lanes were not enough to stage full truck loads and not enough staging lanes existed​.
  • A reduction of pallet racking in exchange for dedicated floor storage. The original layout had no specific zones for floor storage which resulted in pallet storage in zones designated for staging lanes.​
  • An additional pathway to the bulk area to increase productivity and flexibility​.
  • Increasing the number of narrow-aisle trucks was essential to scale up the warehouse throughput.

Benefits

  • Data analysis and warehouse modelling identified the bottlenecks in the warehouse. The main bottlenecks were the staging capacity as well as the availability of narrow-aisle trucks.​
  • The redesign of the warehouse layout increased the performance of warehouse in terms of overall throughput and flexibility. Also, the warehouse is more organized as floor storage has dedicated storage locations.​
  • The new warehouse layout is implemented and RPH plans to double their warehouse throughput.