Most Logistics practitioners follow a set Guideline (and using the latest CAD/CAM or computer modeling) to determine the Right Size warehouse for their Company's needs but I remembered what my boss, the owner of one of Philippines' largest food conglomerate, used to tell me:
Richard, With your present warehouse, warehouse space is not enough. If we increase your warehouse space, inventory levels will grow so that the increased warehouse space will still not be enough.
So, he said something to the effect that it is better to keep warehouse space always a bit short as it will:
1. Force Sales to move-out the stocks fast
2. Force Warehouse to maximize the use of space in a more efficient manner.
You see, for my boss, a warehouse is:
1. Non-income generating asset;
2. Inventory should be in the hands of the company's customers and not locked up in the company's premises.
The above might be so simplistic but still I believe in it.
By the way, I would like to invite you to visit my Sulit Homepage as there are some business opportunities that you guys might be able to help me out with. If you are interested, just click the Sulit Logo below:
 |
| Wasted Assets???? (pic courtesy of forum.skyscraperpage.com) |
So, he said something to the effect that it is better to keep warehouse space always a bit short as it will:
1. Force Sales to move-out the stocks fast
2. Force Warehouse to maximize the use of space in a more efficient manner.
You see, for my boss, a warehouse is:
1. Non-income generating asset;
2. Inventory should be in the hands of the company's customers and not locked up in the company's premises.
The above might be so simplistic but still I believe in it.
By the way, I would like to invite you to visit my Sulit Homepage as there are some business opportunities that you guys might be able to help me out with. If you are interested, just click the Sulit Logo below:
Hi,
ReplyDeleteI want to know how big my warehouse should be, but from a different angle:
How many storage spaces do I need?
I deliver daily X products, all same product, but with some "features". (E.g. colour, glossy or dull, chromium grips and hinges, etc... Quite some variables)
since I deliver X products per day, I produce X products. Trailers are leaving the company constantly, 24h per day. Production runs 24h. (or perhaps I want to close for 8h during the night)
I want to
- Optimize my production and build as many the same variants after each other.
- I want to minimize stock.
Given:
- I have a fixed number of variants with a known, but different distribution. (the possibility that this variant is ordered)
- I know 24h in advance what I will order.
- It takes 8h to produce a part. (from getting parts from warehouse to packing)
So, how big should my warehouse be? I mean, the minimum.
What is the minimum amount of storage spaces?
How do you calculate that?
Regards,
Conrad