Warehouse Data Modeling – Critical Steps You Need to Know to Optimize Performance

Warehouse Data Modeling Tips from the Automation Experts at Apex

Take your pick of analogies –plate spinning, balls in the air, tightrope walking, any of these scenarios are an apt description of a warehouse manager’s job on a daily basis. There’s a constant, precise balance that makes the facility function, and yet it is still vulnerable to outside forces. Like any expert, you use your industry knowledge and experience to make decisions and adjustments, but how much easier would that be with a second expert’s help? Welcome to the world of warehouse data modeling for performance optimization.

Warehouse optimization is the process of efficiently managing inventory from the intake at your receiving dock to putaway, picking, and shipping back out –oh, and all while meeting customer expectations for accuracy, stock availability, and speed. No pressure. But, as we boom into this new world of digital ordering and robust competition, the warehouse automation sector is answering the call with actionable data analysis and scalable, reliable solutions. Here is an overview of what to expect from an optimized warehouse design process. 

Step 1 Define Goals and Compile Relevant Key Data

Before you start the warehouse data modeling process, it’s critical to define your goals and objectives, to answer questions such as:

• What are the primary purposes/functions of the warehouse?

• What projected growth and future timeline should be considered?

• What Customer Service Levels should be met?

Next, compile the key relevant data to allow Apex Automation  to analyze receipts, orders, items, inventory, existing processes, layout, and equipment.

PO/Order analysis – Profile two years of historical data for

• Receipt volumes – over time & by vendor
• Order volumes –  over time, by business unit, by line size
• Shipment profile – on-time fulfillment accuracy

Item Analysis – Analyze the following for each item

• Velocity or popularity
• Cubic movement
• Storage requirements – special handling if any

Inventory Analysis – Determine average and peak inventory levels

• On-hand inventory
• Forward  pick & reserve locations

Existing Layout – Review current warehouse design and storage solutions

• Storage capacities by type
• Facility space and cube utilization

Existing Operations – Examine current processes, and technologies

• Operational baseline
• Headcount & productivity
• System Enablers
• Key KPIs Benchmark for improvements

Step 2 Design Modeling

You’ve set your warehouse optimization goals and compiled your data; now it’s time to design your facility spaces and processes to achieve your objectives using Apex’s proprietary “Warehouse Design” modeling tool.  

Apex’s tool can apply growth factors to historical transactional data or use future forecasted data coupled with key item data, including dimensions, to develop the “Right Fit” warehouse design.  This model incorporates key business data profiling outputs to determine what are the viable storage and handling technologies that should be incorporated in the layout design. 

The underlining principles revolve around Item Popularity (velocity) and Cubic Movement (how much physical product is being stored and shipped) at the SKU level. Warehouse data modeling outputs will define and quantify the various storage type requirements (pick & reserve locations) to construct design layouts. Depending on the type of business (pallet, case, piece, or combo), the model will be able to indicate what, if any, semi- or full-automation technologies are viable to consider.  

Storage and handling methods examined with warehouse data modeling include:

• Pallets – storage methods
  • Racking – selective, double deep, drive-in, push back, pallet flow, VNA
  • ASRS crane and shuttle systems
  • Floor bulk
• Case – storage methods include pallet flow, case flow, rack shelf, bin shelving and cabinets
• Pieces & small case – storage methods include rack shelf, bin shelving, cabinets, goods-to-man solutions
• Automation storage & handling:

• • ASRS rack and cranes
  • Case layer picking
  • Tote shuttle (semi-automated alternates to Auto-Store tote system)
  • Vertical lift module (VLM)
  • Horizontal carousel
  • AMR carts

• Automation enablers to above methods include:

• • Conveyance (ASRS, pick module, packing, sorting)
  • Pick-to-light & sort-to-light (usually associated with goods-to-man solutions)
  • In-line cubing and weighing
  • Print & apply labeling

Step 3 Layout Design

As you near the completion of your warehouse optimization quest, your layout options should be based on the viable storage and handling requirements from the data model. In addition, your solutions should detail labor and equipment needed, plus an annual operating expense projection. In order to make an informed decision as to the best path forward, you will require all of those project parameters.

Here is an example of warehouse data modeling and how it is used to build the design. Single Units (Product Brands) A, B & C stored in a single warehouse. 

Items: A, B & C

• Items A & B, 75% of the volume, are frequently purchased together and can be co-mingled for storage and shipping 
• Item C – represents 25% of the total volume and is ordered and ships separately
• Seasonal increase in July of approximately 130,000 pallet loads
• Growth projections (approx. 19%) applied based on order history (both full pallet and case picks) to estimate peak volumes.

Projected Demand	Total	Item A	Item B	Item C	Average Day	Peak Day
Total Equiv. Pallet Demand	700,000	360,000	160,000	180,000	2,400	2,700
% of Total Pallet Demand		51.5%	22.8%	25.7%
Full Pallet Picks	540,000	280,000	135,000	120,000	1,700	2,100
Case Picks	17,640,000	10,000,000	2,900,000	4,500,000	57,000	68,000
Case Line Replenishments Pallets	160,000	80,000	25,000	60,000	540	640

Step 4 Evaluate the Designs

Finding the “Right Design” often requires evaluation between varying layouts that consider different levels of automation. Using Apex’s “Design Evaluator” can help with this critical step. The design evaluator is a proprietary warehouse design modeling tool that uses projected business volumes by functional area to estimate the operating requirements (labor and lift trucks) and associated ongoing operational and maintenance costs against the capital investment required for each design layout. The tool is often used to compare designs carrying from low-capital traditional methods against semi- and fully-automated alternatives. 

The model incorporates the physical aspects of each design (travel distances, storage types, lift heights, staging areas, dock doors, equipment and lift truck specifications, etc.) with a feature to build up specific job tasks by function using engineered standards and benchmark data to estimate time and effort levels. Combing the volumes, physical aspects, and job tasks, the outputs provide an estimated productivity to determine labor and lift truck counts. These allow for a financial assembly of OpX vs. CapX costs for comparing each alternative design.

Prior example summary comparing three design alternatives:

From Small Steps to Big Leaps

Warehouse data modeling and design applications are the stepping stones that lead to an optimized facility that meets your storage and processing goals. It does take a careful look at each element outlined above. Still, when paired with the right storage and handling solutions, you get a cost-effective approach to today’s challenges and situate your operation to handle tomorrow. The Apex team offers a full-service approach to meet all of your warehousing needs.

Our automation solutions team is ready to help you gather and evaluate all necessary data and create an optimized design. Our warehouse systems and installation teams can configure and build your storage solutions, mezzanines, pick modules, modular spaces, and more to ensure safe and reliable long-term use. To complete your warehouse design, the Apex material handling team can help you find the best vehicles for each of your operational tasks. 

One call does it all with Apex. Call today to speak with a warehousing expert.