Preparing a masterplan and studying the organization's supply chain

The masterplan for the organization is based on the following principles:

Optimal flow of vehicles and pallets between buildings at the site (ingress/egress, plants and warehouses)

Adjusting the optimal storage and handling methods

Max utilization of the land – leaving reserves for growth


Typical project content:


Stage 1 – survey of needs, collection and analysis of current-situation data:


  • Area and height balance

    • Description of the activity in the compound

    • Compound areas

      • Production

      • Operations

      • Storage (by storage temperature)

    • Compound height

  • Defining the complexity of moving existing compounds to other locations within the site

    • Infrastructures

    • Compounds not intended to be moved

  • Defining in principle the possibility to increase the compound from the aspect of height dimension

  • Changes in existing compounds

    • Compounds which are intended to leave the site

    • New activities to be introduced into the site (details of the activities, required areas, scopes of traffic in and out of the compound, etc.)

  • Infrastructures

    • Infrastructures in the compounds

  • Capacities, throughputs, and future design of the compounds

    • Warehouses

      • Current warehouse capacity

      • Current warehouse occupancy

      • Forecast of annual growth in required capacity (due to increase in the scope of activity)

      • Max future planning of the warehouses based on current warehouse capacity

      • Local alternatives of increasing warehouse capacity – how much can future planning be increased accordingly

    • Plants

      • Current no. of shifts

      • No. of shifts which can be operated in order to increase throughput, if required.

      • Current plant throughput

      • Plant's max possible throughput

      • Annual growth forecast in plant throughputs (due to increase in scope of activity)

      • Future planning of the plants based on the existing layout

      • Alternatives of increasing the throughput based on the existing structure – how can future planning be increased accordingly?

  • Picking warehouse

    • Current balance of areas by storage temperature

    • Current number of Cat. Nos by storage temperature

    • Picking locations

      • Number of Cat. Nos for which picking location of an entire pallet is required

      • Number of Cat. Nos for which picking location of half a pallet is required

      • Number of Cat. Nos for which picking location of a deck is required

    • Stock distribution (pallets) by Cat. No.

    • Pallet movement volume distribution by Cat. No.

    • Distribution of picking lines by Cat. No.

  • Site movement balance

    • No. of incoming and outgoing pallets to/from the compound on an average/peak day

    • No. of incoming and outgoing trucks to/from the compound on an average/peak day

    • No. of internal movements between site compounds – details of the method of internal handling at the site (trucks / forklifts)

  • Links between the compounds

    • Definition of links between compounds

    • The scope of daily traffic between compounds

  • Operating areas (receiving, storage, picking, concentration of ready shipments, etc.)

  • Manpower in the compounds

    • Management

    • Production

    • Logistics

  • Office program per each compound


Preparing a Dada Summary Report, which will form the basis for the planning and design – will be presented to you for your approval


Stage 2 – Alternative matrix definition:


  • Defining technological alternatives for pallet storage

    • Expansion of the existing automated warehouse

    • Building a new automated warehouse

      • Regular automated warehouse (cranes)

      • Automated pallet multi-shuttle warehouse (elevators, carriers and shuttles)

      • Satellite-integrated crane automated warehouse

  • Defining alternatives for the picking warehouse layout

    • Leaving the existing picking warehouse

    • A new picking warehouse integrated with AGV automated replenishment

    • Additional alternatives defined by us

  • Defining alternatives of placing the site compounds


For each alternative, the following will be prepared:

  • Drawing of the alternative

  • Flowchart of truck and forklift traffic at the site

  • Estimate of establishment costs

  • Estimate of operating costs

  • Implementation timetable


Stage 3 – Comparing between alternatives and recommending an alternative:


  • Preparing a summarizing presentation of the masterplan

The presentation will include an economic comparison and a qualitative operating comparison between the matrix of alternatives (positioning / layouts / technologies) and recommendation of the optimal combination of alternatives for you, as well as the overall layout

  • Transition to the implementation stage

© 2019 by Biran.

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