Warehouse Redesign Challenges—Adapting Layout and Improving Process Flow

Abstract

The paper presents current logistics challenges for an important automotive industry supplier in Western Romania in the context of the region’s economic setting and characteristics as well as the plant’s continuous development perspectives. After successfully extending the plant within recent years, another estimated rise in quantity volumes between 50 and 200% on medium-term needed to be managed within the same spatial constraints. Specific logistics challenges meant increasing storage capacity, improving traffic flows features, and redesigning warehouse layout to enhance process flow requirements. The research conducts an analysis of the warehouse redesign methods used in order to meet these operational challenges in its initial boundaries and some intermediate results. Location occupancy rate has doubled, traffic and material transfer are more effective, and process flow has improved by almost 10% sourcing and efficient adapted logistics layout. The introduction of new technologies in warehouse management (industry 4.0 principles, use of AGVs, megalift storage, smart devices, real-time KPIs) has significantly contributed to reorganizing material flows and enabled an adaptive layout which is flexible and can properly support the rate of the high added value manufacturing process of the plant. The quick and efficient response of logistics in handling and dealing with specific space and process flow challenges is essential in rendering an effective manufacturing process and very good connections with the plant’s suppliers and customers. The reliability of the implemented solutions will source its competitive position in the automotive market and provide appropriate future development perspectives.