Redesign of a distribution centre to increase operational capacity

Abstract

Incomati Warehousing and Distribution specialises in different Supply Chain Services namely Warehousing, Logistics, Distribution, Information Technology and Management Consultancy. It is a relatively young organisation, growing at a very rapid rate. Its current Distribution centre is situated in the East Rand. During the peak period of 2011, the organisation received such volumes that the Distribution Centre was unable to process the goods at an adequate rate. As Incomati Warehousing and Distribution is experiencing substantial growth, it is necessary for the Operational Capacity of the organisation to be increased to prevent a repetition (or worse) of the peak period of 2011. Trends such as centralizing of warehouses are discussed and fundamental Principles and Procedures. In order to design an improved facility layout, the project will include the application of the Facilities Planning process as set out by Tompkins, White, Bozer & Tanchoco (2010:14) and Muther’s Systematic Layout Planning (SLP) Procedure. Furthermore, the alternative layouts would be evaluated by the Computerised Relative Allocation of Facilities Technique (Tompkins et al 2010:314). It is imperative that it be kept in mind that a newly designed and implemented facility does not conclude the planning effort entirely. A facility must be continually adapted and modified over time for it to align with its ever changing requirements and specifications. The larger, newly designed facility plan will have the capacity to process future volumes of stock. It will accommodate the growth and process needs of the company. Redesigning the Distribution centre to increase Operational capacity is the most practical, cost effective solution to this problem.