Running Head: SUPPLY CHAIN DESIGN
SUPPLY CHAIN DESIGN: OPENING A WAREHOUSE IN AUSTRALIA
Course name and number
SUPPLY CHAIN DESIGN
Opening a Warehouse in Australia
Strategic Warehouse Management, Inc. (SWM), based in the US, seeks to open a
warehouse in Adelaide (a city), Australia, to serve all types of businesses and also handle
some logistics. Since the new establishment is part of a network being launched in a new
region, considerations such as the region’s regulations and corporate governance must be
well analyzed to develop an effective action plan. Warehouse management is one basic skill
needed in the new establishment to assist in warehousing logistics, transport management,
inventory management, and warehouse-space organization. Imports and export activities are
also included in SWM’s plan, so, distribution management will be a core aspect of their
operations. Many activities such as packaging, and processes like logistics, supply chain
management, and warehousing form a great concern in the development of a preliminary plan
and the warehouse’s design (Rushton, Croucher, & Baker, 2017. SWM needs a
comprehensive analysis of functional requirements, operational requirements, potential
organizational structure, and legal and corporate routines to guide the development team to
implement the plan.
Warehouse Design Requirements
The requirements of a warehouse design are determined by product, space,
equipment, circulation of goods, and professional personnel to constitute a reliable workforce
(Price & Harrison, 2015). The construction of the warehouse influences interior components
that will be included. The plot size, structural complexity, and service requirements to be
installed regulate the size of the floured area. The warehouse is most suitable in Adelaide
because the city has an Airport (Adelaide Airport) and a port (Port Adelaide) around. The city
is also easily accessible to and from the interior dryland, thus making it suitable for dryland
transport arrangements. The warehouse is planned to occupy a floor area of more than
100,000 square feet in size. Cisco (2019) argues that 64% of warehouses in the US cover a
SUPPLY CHAIN DESIGN
floor area of more than 25,000 square feet. The large size is to accommodate the state of the
physical art design, technology, and both dry and cold storage.
The structure will require strong foundations, vapor-proof barrier, quality roofing,
ventilation, multiple double sliding doors, and adequate illumination. Also, racking is a very
important aspect before and during construction as stretched by Price and Harrison (2015).
The warehouse will be designed in a way that the racks are accessible and enable the easy
flow of products in the structure. The warehouse has two major functions: storage and
grading and packaging. The storage will incorporate the Mezzanine Flooring storage model
to save up on space and increase better utilization of equipment such as machinery. On the
same note, cold chain logistics and refrigerated transportation are one of the main
requirements of the warehouse. Therefore, the warehouse ought to constitute a cold storage
facility and refrigerated transport trucks. As NPCS Board of Consultants & Engineers (2019)
argue, due to numerous different customer demands, it has become much ordinary for 3PLs
to make custom cold storage facilities for clients.
On the other hand, technology forms a basic requirement in the warehouse’s design.
Technological requirements include pick-to-light systems, order fulfillment optimization
technology, machine-to-machine technology, and warehouse robotics technology. Richards
(2017), argues that voice tasking technology and labor management systems are also
important technological trends in warehousing. Furthermore, the warehouse requires a
transparent inventory management system with advanced software, a secure database
management system, and a web application to handle the traceability of goods in SWM’s
supply chain. SWM’s supply chain, together with the warehouse requires cloud computing
capabilities to enable electronic supply chain management and internet-enabled management.
SUPPLY CHAIN DESIGN
The new warehouse...