WAREHOUSING II

5.0 Warehouse Layouts

The ‘internal’ layouts of different warehouses differ greatly. Much depends on the size and shape of a
particular warehouse, its location, access/exit points; the types, quantities and sizes of the items housed in it;
and the activities of the main department(s) it serves. Every individual warehouse must be laid out with
regard to the structural features of the area allocated to it, and the demands placed upon it.

5.1 Good Warehouse Layouts

5.1.1 Features of Good Warehouse Layout

Despite the enormous diversity of different possible layouts of warehouses, and the reasons for the diversity,
certain basic features of good warehouse layout can be pinpointed. The features are:
 Economy – With few exceptions, storage space is limited; it is at a premium and must not be wasted.
The most economical and efficient use must be made of the maximum area of storage space available.
 Accessibility – All items in the warehouse must be so positioned that they can be identified and located
when needed with the minimum amount of time and effort.
 Flexibility – Volumes of total stock held, or quantities of different items held, can vary considerably
from time to time. Also, changes in the activities of the operations of an organisation may necessitate
considerable changes in the items held in the warehouse. The layout of the warehouse must be capable
of being rearranged as circumstances dictate.
 Protection – The layout of a particular warehouse must afford the maximum protection for the items
housed in it, and the warehouse personnel working in it, as well as for any visitors to it.

Wherever possible, the warehouse layout should keep to the minimum the distances which have to be
travelled, by stock items and warehouse personnel, particularly those of the latter involved in the manual
movement of items. The routes to be taken by vehicles or other transporters should be clearly defined and
marked; wherever possible, pedestrians should not be permitted into these ‘lanes’. Where vehicular and
pedestrian paths must cross, every precaution should be taken to avoid the risk of collisions.

Another matter which may have a bearing on warehouse layout may be whether items will be stored on a
‘fixed location’ system, or on a ‘random storage’ system, or on a combination of both systems. In the first
system, each item will be stored in more or less a fixed position. In the second system, items will be held in
containers of standard sizes and are placed wherever space is available at a particular time; thus quantities
of similar or identical items may be stacked in different places instead of being together in one – permanent
– place. Frequently one method can be used in one section of a warehouse, and the other method in another
section.

5.1.2 Advantages of Good Warehouse Layout

Advantages of good warehouse layout are:

 Increased output  Time saving
 Improved material flow  Increased safety of materials and people
 Reduced costs  Increased efficiency
 Improved customer service

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 5.2 Space Planning and Layout
Good layout is the first essential of the effective use of space. Space planning and layout involves the
following:

1. Factors/data required in planning storage space:

Factors for consideration include:
(i) information on stock quantities – on hand, (iv) issue units
due-in, fluctuations. (v) issue volume per time period
(ii) inventory policy (vi) methods of handling – present and planned
(iii) replenishment practices
(vii) storage area type – bulk, racks, bins, retail, (viii) equipment capability – type, size, capacity,
security, outdoors, refrigeration, shelving turning radius, etc.
The accumulation of all this information is for arrival at the next item.

2. Definition of space size:

Methods of space subdivision depends greatly on materials to be stored.

3. Space layout:
Factors for consideration include:
(i) commodity sizes (vi) column spacing
(ii) pallet sizes (vii) building size and shape – open space for
(iii) mechanical equipment used – narrow-aisle adjusting layout based on requirements
or counterbalanced trucks (viii) desired location of receiving and shipping
(iv) ratio of aisle width to pallets (ix) aisle location
(v) pallet rack spacing (x) required service areas and their location.

Layout planning is concerned with where different items should be located within the warehouse.

5.3 Types of Warehouse Layouts

There are different types of warehouse layouts depending on the needs of the organisation and the types of
materials to be housed in the warehouse. Some types of warehouse layouts are described below.

5.3.1 Inverted T Flow Warehouse Layout

In this type of layout, materials in and materials out activities are done on the same side of the warehouse
building. The shape allows the use of high-usage, medium-usage and low-usage areas to minimise
materials handling by locating high-usage and low –usage areas respectively nearest and furthest from the
goods-received and goods-issued areas. This minimises materials handling for high-usage items. This
layout is illustrated in Figure 2.

Advantages of the Inverted T Flow Warehouse Layout

The advantages of the layout are as follows:
(i) Better utilisation of the receiving and issuing areas and associated mechanical handling equipment. This
leads to better customer service.
(ii) The total area required is less than where there are separate loading and unloading areas. This leads to
better space economy.
(iii) Easier to extend the building on one or more of the three sides.
(iv) Unified inlet/outlet operations provide for better security control and easier surveillance/inspection.

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Disadvantages of the Inverted T Flow Warehouse Layout
The disadvantages of the layout are as follows:
(i) The central aisle/gangway may become congested in high through situations.

Walls
Low-usage items

Bulky storage Side

Medium-usage items gang-
ways or
aisles

High-usage items

Main gangway

Materials inwards Materials outwards

Figure 2: Inverted T Flow Warehouse Layout

The main gangway is the main route through the warehouse. From the main gangway run off side
gangways or side aisles. The side aisles enable warehouse personnel and transport equipment to reach
quickly and easily any storage section.

5.3.2 Cross Flow Warehouse Layout

The flow in this type of layout is a one-way system with an ‘in-feed’ aisle and a separate outflow from the
other end of the racks. Front entry and despatches use a common yard area and the layout retains the
benefits of the Inverted T approach. Stock management benefits from integrated bulk. Picking stock is
integrated but if bulk stocks are a large proportion of total stock, this may not be practical. This layout is
illustrated in Figure 3.

5.3.3 Corner Flow Warehouse Layout

In this layout, inward and outward flows are on adjacent but different sides of the warehouse building.
There is no area for bulk storage. The layout is illustrated in Figure 4.

Advantages of the Corner Flow Warehouse Layout

The advantages of the layout are as follows:
(i) Helps to reduce congestion of aisles in times of high throughout.

Disadvantages of the Corner Flow Warehouse Layout

The disadvantages of the layout are as follows:
(i) Building expansion is only possible on the two sides without doors.
(ii) As the activities in the yard and within the warehouse are not visible from a single vantage point, there
are potential problems of security and surveillance.
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(iii) High operational costs as more security stage have to be employed.
(iv) Increased ordering costs due to limited order quantities as there is no bulk storage.

Low-usage items

Medium-usage items

High-usage items

Materials inwards Materials outwards

Figure 3: Cross Flow Warehouse Layout.

Low-usage items

Medium-usage items

Materials outwards

High-usage items

Materials inwards
Figure 4: Corner Flow Warehouse Layout

5.3.4 Through Flow Warehouse Layout

In this layout, materials inwards and materials outwards are on opposite sides of the warehouse building.
All items must therefore travel full length of the warehouse. The layout also requires separate materials
inwards and materials outwards management with dual yard access and this doubles the internal bay areas.
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The layout is illustrated in Figure 5.

Advantages of the Through Flow Warehouse Layout

The advantages of the layout are as follows:
(i) A smooth ‘through flow’ of items into and out of the warehouse is possible.
(ii) Permits, in many cases, vehicles to drive right into the warehouse at one end, offload or load items close
to the appropriate storage areas, and drive out through the opening at the other end; carrying or man
handling of the items is thus reduced.
(iii) The maximum area of useful storage space can be utilised.
(iv) Various storage areas are clearly separated by gangways, and thus permit easy segregation of different
types of in terms or sectionalisation or even compartmentalisation, as required.

Disadvantages of the Through Flow Warehouse Layout

The disadvantages of the layout are as follows:
(i) Limited future expansion of the building.

Low-usage items

Medium-usage items

High-usage items

Materials Main gangway Materials

inwards outwards

High-usage items

Medium-usage items

Low-usage items

Figure 5: Through Flow Warehouse Layout

6.0 Stockyards
So far we have been primarily concerned with buildings – called stores or store houses, warehouses or
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godowns – in which a very wide variety of materials is housed for protection pending their issue when
required. However very many organisations maintain stocks of nonperishable materials, that is items
which will not deteriorate or perish if exposed to the elements (sun, rain, etc). Space inside warehouse
buildings is generally limited and is always valuable. Therefore, instead of being stored inside buildings,
non- perishables are often stored in open storage areas called stockyards.

6.1 Materials Suitable for Stockyard Storage

Materials which are intended to withstand the elements are obviously suitable for storage in stockyards and
such materials include:
 Building Bricks  Paving stones
 Sand  Concrete slabs and precast concrete products
 Gravel  Roofing tiles and slates
 Earthenware pipes  Many other external construction materials.

There are many other materials which can be stored in stockyards for reasonable lengths of time without
serious deterioration and examples include:
 Coal and coke  Heavy duty electrical and other cables
 Other fuels stored in drums  Plant and machinery designed for outdoor use,
 Heavy iron and steel castings such as tractors, lorries, cranes, etc
 Heavy steel bars, rails, metal piping and  Scrap and waste materials awaiting sale or
structural steel sections disposal in some other ways
 Timber

Some of the materials mentioned may require, or benefit from, partial protection; and be stored in simple
structures having roofs supported by poles or pillars but without solid walls.

Some organisations maintain only a warehouse, whilst others maintain only a stockyard. There are, however,
some organisations which maintain both.

Unfortunately, there is a tendency in some organisations for stockyards to receive less attention than
warehouses because the materials held in the former are nonperishable. Such an attitude should not be
allowed to develop, as the values of materials held in the stockyard can be considerable, and the efficiency
of a stockyard can be just as important to the smooth running and profitability of a business as is an
efficiently managed warehouse.

6.2 Advantages of Storage in Stockyards

The advantages of the use of stockyards for storage of non-perishables (which are usually heavy and bulky
materials and/or equipment) include:
a) Stockyards are relatively inexpensive to construct and to surface compared to the cost of building or
renting warehouses with the same capacity.
b) Maintenance costs, that is, for repair and replacement of fixtures, etc., are low compared to the
maintenance costs of warehouses.
c) Expenditures on lighting, etc are very low compared to the expenditure on the same in the warehouses.
d) When suitably surfaced, heavy materials handling equipment, such as cranes, can be used without the
problems encountered with their use inside warehouse buildings.

The advantages of stockyards can be summed up by stating that they provide very large area for very low
expenditure and running costs.
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6.3 The Stockyard

6.3.1 Stockyard Location

There is no ‘standard’ location for a stockyard, anymore than there is for a warehouse building. In some
cases it may be necessary and/or convenient to locate a stockyard adjacent to a warehouse; whilst in other
cases a stockyard is located some distance from the organisation’s main warehouse, but is connected to it by
a link road. As with stores buildings, it would often be advantageous for stockyards to be located as close to
their main ‘users’ as possible, to reduce handling and transportation, but other considerations may dictate
otherwise. A major factor determining the location of a stockyard is the disposition of transport facilities –
road and/or rail – to ensure unhindered passage for often large vehicles delivering materials to, and
collecting from, the yard; with this mind, location near a main or trunk road or a railway line may be
essential. Good transport connections between a stockyard and the main stores building and/or its major
users are also very necessary.

Other factors which may be involved in selecting a suitable site for a stockyard include:
a) Whether the space is available within the existing complex; if not, the cost/rent of land available in the
vicinity must be considered.
b) If not land is available nearby, or that which is available is very expensive, more distant location may be
the only answer.
c) The larger the size of the stockyard, the more likely it is to be located well away from town/city areas.
d) The nature of the land – the best stockyard site is one which is levelled and well drained, and if a site is
uneven and/or badly drained, expenditure may have to be incurred in levelling and/or draining it.
e) The nature of the material to be stored in a stockyard; for example highly flammable or otherwise
dangerous materials may need to be held well away from the organisation’s other premises and from
population centers.

6.3.2 Surfacing

Where only scrap, waste or obsolete materials are held in a stockyard, its base could be left unsurfaced; this
is very cheap, and it may only be necessary to level the site, with a bulldozer or grader before using it.
Little if any, maintenance costs would be involved. The disadvantage could be that in adverse weather
conditions the weights of the loads which could be handled, and the types of vehicles or materials handling
equipment which could be used, might be restricted.

The materials which could be held in unsurfaced stockyard are very limited, and we shall therefore consider
the three surfaces most commonly used in the stockyards:
1) Gravel or Clinker – Gravel or clinker, rolled and consolidated and finished off with fine gravel, is a
very popular surface, especially where large quantities of low value materials are held. It is normally
the cheapest surface. Inevitably, it is also the least efficient because heavy rain can wash away much of
it, or cause it to become water-logged. It is also liable to be churned up by heavy vehicles and materials
handling equipment. It is particularly unsuitable for fork-lifts. Heavy maintenance charges are likely to
be incurred which, over a period of time, will amount to more than the initial cost of a superior surface.
2) Tarmac – This is usually laid upon rolled hardcore or rock chippings, and is by far the most popular
surface for stockyards. It is very strong and support quite heavy loads, although very heavy loads can
damage it in hot weather. It costs considerably more than a gravel surface, but it is easily maintained
and repaired, stand up well to traffic and drains off well.
3) Concrete – This is also set upon rolled hardcore or stone chippings, and the concrete itself is reinforced
with metal screen or ribs. It is the most expensive surface, but is by far the most stable and strong one,
and can bear the heaviest loads in all weather conditions, particularly as it drains well. Its initial cost

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 can be off-set by low maintenance requirements, even when used by heavy lorries and materials
handling equipment.

Financial resources often necessitate a compromise on stockyard surfacing, whereby stacking areas are
surfaced with gravel or clinker, and the main access roads and the side access roads or paths are tarmaced or
concreted.

6.3.3 Layout of Stockyards

Stockyards are used mainly for the storage of bulky, heavy and large items. Because of these weight and
size factors, it is important for stockyards to be organised and laid out to avoid having to handle and move
materials more than is absolutely necessary. Thus, as goods arrive in the yard, they should be taken direct to
the area where it is intended to keep until they are required.

In planning a stockyard location system, it is helpful to classify materials according to the rate of usage; for
example, high-usage rate, medium-usage rate and low-usage rate. Much travelling and handling time can be
saved if materials frequently delivered to, and issued from, the yard are positioned close to the entrance or
exit point, whilst the medium- moving and slow-moving materials are located progressively further from the
entrance or exit. Particularly in large stockyards, a planned logical and workable location system is
essential if materials are to be positioned for storage and located/issued quickly and efficiently.

It is essential for every storage section in the stockyard to be accessible to vehicles and materials handling
equipment employed, and this necessitates a network of access roads and gangways of widths appropriate to
the sizes of the vehicles and equipment and the loads to be carried. There must also be sufficient room for
manoeuvring. There should be a smooth flow of vehicles into and out of the stockyard. Figure 1 shows a
good stockyard layout.

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 Public Road Exit Gate

Main Gate
Storage Areas W House Garage

Main Access Road

A B C D

Storage Areas
E F G H
Storage Areas

I J K L

Side Access Roads

Storage Areas
Storage Areas
W Gate House

Main Warehouse
Building Entrance
Gate Packing Space for
Cars, Vans, and
Lorries

Public Road

Figure1: An Example of a Good Stockyard Layout

A to L: Storage Areas
W: Weighbridge