Setting up a Centralized Warehouse

In 2013 Paramont EO decided to move to a centralized warehouse distribution model and subsequently leased a 80,000 square foot space in Woodridge, IL. Given the opportunity to lay out our warehouse from scratch, we took full advantage of having an empty space. We decided to place all of the smaller size, higher moving, products closest to our material counter. This meant the counter sales staff could fill their own orders with our better selling products. Devices, fittings, breakers and the like. We have 10 dock doors so we laid out our larger material utilizing their various heights. We located our conduit directly across from the bay doors that are on ground level so we can unload those trucks inside our building. Our wire stock is located across from our dock height door so we can unload with pallet trucks. Bulk items are stored where overstock can be easily accessible.  View More…

Keeping logistics in mind, we located our slower moving, yet still necessary, stock at the far end of our building. Once we had a grid in place for stock we turned our attention to how orders are filled. We followed the progression of our order fillers and thought of ways to speed up picking. We located devices across from our cover plates. Our 1 hole straps across from our pipe fittings. Our nipples across from our elbows. We ran reports to see which “like” items usually appear on orders together. By limiting how far we space “like” material apart we are able to fill orders at a much faster pace.

Next we looked for an aisle labeling system that made sense to any new hires. Starting from the furthest point in our warehouse we labeled that aisle “AF”. A Front. The aisle behind it is “AB” A Back. We repeated this throughout our space ending at “ZB”. Anyone that knows the alphabet can now fill orders. We then broke those aisles down into individual sections. AF1, AF2 etc. And again by bays. AF1A, AF1B. This allows our order fillers to pinpoint the exact location of an item.

The above has afforded us the ability to keep better track of our stock as well as speed up our cycle counting, which in turn enables us to pass along additional savings to our customers.

Kevin Reed
Director of Purchasing for Paramont EO

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