What should you do if your warehouse needs to absorb new operations? Logistics sizing is used to organize space and workflow.
Warehouses are constantly changing, whether to absorb more demand or to streamline operations. This creates needs for logistics sizing to compose a new operation that meets the premises of this flow.
In the rush, these adaptations are made based on “guesswork”. The most qualified professionals use their years of experience to guide the changes, but this process has flaws. Choices need to be based on data and information, because monitoring metrics guides managers to make good decisions.
Importance of logistics sizing
According to Colliers International, the average cost of leasing logistics condominiums in Brazil decreased from 2012 to 2013 and has not increased since then. Therefore, there are good opportunities to reduce the need for warehouse space and the rental cost per m².
Do the logistics sizing helps companies reduce the space of their operations. This generates a series of savings: electricity, number of employees, rent of the premises, among others. Rethinking the structure and counting on the vertical storage help to reduce expenses.
How to apply logistics sizing
A good one logistics sizing is done through calculations. The data in the system must match that of the physical inventory. If there is a difference in the information, you need to take a step back and look at the inventory management.
If everything is in order, it's time to apply this concept within your warehouse. sawtooth chart helps us because it shows the evolution of the quantity of an item in stock over time. It is built based on stock movement and guides managers to know when to place new orders.
The goal is quite simple: to carry out control to avoid two very common scenarios. One of them is the surplus, or obsolescence of the item – taking up unnecessary space in the warehouse and making it difficult to logistics sizing. Another problem is the shortage, which prevents the company from meeting new orders and, consequently, not making as much profit as it could.
Using the sawtooth is very important when considering dimensions. The information obtained helps the manager understand how much space is needed to store the products and what the flow of movement will be. For example, when new items will arrive and how operations will be carried out.
With this in hand, it is possible to look at the warehouse and think about the new logistics sizing. Bringing this perspective to the reality of your inventory is essential to reducing costs and promoting more efficient operations.
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