case study: Failure to Optimizing appropriate space in warehouse

Client – Construction Raw material supplier

Challenge – Optimizing appropriate space in warehouse

Solution- SynergyLabs AI powered solutions

Overview

Businesses have long faced hurdles while optimizing the space in the warehouse. Reason may be an inaccurate floor design plan.

Our client dealing with construction materials faced failure in fully utilizing the floor space and was unable to use the space to its fullest capacity.

In the present scenario, it is observed that when warehouse space is compromised by 10-20% due to poor design plan, it creates a huge hurdle to efficiency and productivity, especially from the perspective of movement and storage.

Failing to fully optimize all its space in the warehouse, it is likely to restrict aisle movement due to scattered floor pallet positions. This results in multiple moves, increased labor duration, delayed work process as well as increase labor costs. At the same time, it is tough to reduce space utilization occupied by overstocked inventories. This tumultuous condition in your warehouse can lead to drops in passing out of inventory and pilling of overstocks. Since, inventory takes weeks to sell off, it can directly impact ROI.

Challenges  

For my client, the challenge is to increase adaptability of its entire work system to the warehouse space. With ever-increasing consumer demand, our client has been able to meet the customers’ needs with their products and foster an exponential growth to their construction materials business. Amid this situation, failing to establish the better design for their warehouse space management, they anticipated drops in sales and losing customer trust.

Given tradition design plan, it takes more than two months to be finalized by the authorities and also it involves heavy spending. Even if it is in place, it is unlikely that owners get the optimal warehouse space design plan. If this process can be improved, businesses can concentrate more on other operations and drive operational growth.

Based on this ground, our client approached us to find them ways to improve efficiency by utilizing the space properly while maintaining a higher standard of customer service.

Solution

We at SynergyLabs proposed them to leverage smart and intuitive AI tools to automate the design process of their warehouse. The attempt was first- of- its- kind and it has real potential to transform the business process how they had operated. The client preferred our suggestion and we were on the way to integrate this tool to their systems.

How It happened

SynergyLabs built a system comprised an architect to enable data process and make assessment on the optimal floor plan. The available data focused on the requirements of our client as well as constraints. As we came out with an improved design plan, we were ready to implement that design into our client’s warehouse site.

Results

With the optimal warehouse space design, we enabled our client to fully utilize the space in their warehouse. In addition to this, we incorporated their inventory management software with AI for improved utilization of the space. The entire system design and AI powered inventory management software made it possible to identify items in even a small storage space. Besides, it helped take improved and data-driven decisions regarding product shipment. It also improved the utilization of floor space by vehicles that could move swiftly through narrow and dense aisles.

Overall, AI driven warehouse space design plan helped our client achieve the goal they envisioned.