Axelot has developed for Avtostals a plan for a smooth modernization of the warehouse

2022: Development of a plan for the phased modernization of the warehouse

Based on the results of the technological design project, the plan for the phased modernization of the warehouse, which includes moving to another site and the implementation of the WMS system, will allow Avtostels to go through all the planned transformations without the need to pause the warehouse. This was announced by AXELOT on February 1, 2023.

The company plans to increase the turnover using cross-docking technology by more than half, including by expanding the assortment, as well as launch additional business areas for itself - responsible storage and fulfillment services. It is for these needs that Avtostels LLC plans to move to another warehouse complex. But before this, in order to make the most of the capabilities of this site, the company needed to understand how to place all the goods, organize product flows, how and where to locate different areas, where to organize a storage chamber for flammable liquids and which storage systems to use. It was also necessary to preserve the existing method of packaging and labeling goods in boxes along delivery routes, so that the process of delivery to customers would not become more difficult for representatives of Avtostels LLC in the regions. And all this considering that both goods for storage and cross-docking will pass through this complex.

The management of Avtostals decided to entrust the development of the warehouse concept on this site to AXELOT specialists. At the time of the survey, a storage warehouse was organized in a small two-story mezzanine, on the ground floor of which there were temporarily parts passing through a cross-docking scheme. During the inspection, consultants found "bottlenecks" in the technology of processing the goods:

• Some of the goods of all groups and customers after checking the quality, quantity and sorting are placed in transit cells, which requires a large number of such cells and, accordingly, areas, and also involves the repeated appeal of employees to the article, which leads to additional movements of personnel and parts.
• The movement of medium and large parts is carried out in ways for which there are different schemes for improving efficiency.

Working out even these points could significantly increase the efficiency of warehouse processes, but this was only the beginning of the project. In his work, the project team had to take into account the architectural features of the warehouse to which the move is planned, and the appearance of a group of goods requiring special storage conditions. The future site is 3 times larger than the current one, it is equipped with 5 docks with dockwellers and 1 dock with a monolithic ramp. According to the preliminary assessment of AXELOT specialists, even without taking into account the growth of cargo turnover, such a loading and unloading front would not have coped with the predicted load, not even counting the outgoing flow. Therefore, it was proposed to organize a site for maneuvering and parking of incoming vehicles, a unloading area, as well as an additional dock with a thermal vestibule at the western wall of the warehouse.

The required capacity and areas of all process areas of the warehouse were calculated (taking into account the growth) and a plan of their location relative to each other was developed in such a way as to optimize the movement of products, equipment and personnel. It was proposed to organize a chamber for flammable liquids under the mezzanine, which reduces the cost of building a separate specially equipped room.

As part of the project, the requirements for the design of updated business processes were formed, taking into account the peculiarities caused by the subsequent implementation of WMS. Since the system has already been selected - AXELOT WMS E5 will be implemented in the warehouse - in addition to coordination with Avtostels specialists, the developed business processes were verified by experts on the implementation of the warehouse management system.

The high speed of processing goods in stock will be achieved by:

• technology that allows transporting and automatically sorting not only small-scale, but also medium-sized parts;
• Synchronizing the sub-sorting of parts from the storage and handling warehouse for cross-docking goods
• organization of two-stage sorting of small and medium-sized parts (first by routes, then by customers);
• high storage density as a result of using mezzanine structures based on front racks.

As a result, the site will be able to maintain high efficiency, taking into account the planned change in trade turnover. The project team managed to effectively plan the use of the warehouse space by combining, among other things, responsible storage services and fulfillment at one site.

An action plan has been developed that allows Avtostals to make a smooth transition from the current state to the target one, which takes into account the preparation of the site, moving to several queues, the phased launch of conveyor equipment, the implementation of a WMS system and other changes without pauses in the work of the organization.