Planning a new warehouse is often perceived by many companies as merely a construction process. In reality, however, it is a strategic decision that determines operational efficiency, costs, and growth potential for years to come. We spoke about this topic with Ilia Shamanidi, Project Manager at A Logistics Company.
What is the main strategic mistake companies make at the initial stage of warehouse planning?
“The most common mistake companies make during warehouse planning is starting the building design process without a comprehensive analysis of operational processes. As a result, operations are forced to adapt to an already constructed space, instead of the space being designed to fit operational needs. This often complicates processes and reduces efficiency.”
What factors should be defined before starting the project?
“Before launching the project, a company must clearly define its operating model, inventory structure, turnover indicators, and future growth forecast. It is also essential to determine what type of storage is required, how intensive inbound and outbound processes will be, and what technological support will be used. Based on this data, it becomes possible to properly define the required space volume, logistics flows, and infrastructure requirements.”
How is the optimal warehouse size determined based on real operational needs?
“Warehouse size should be determined not only by current inventory levels, but also by actual turnover and growth dynamics. It is important to analyze average and peak loads, seasonality, and inventory turnover rates. It is also necessary to define at what height and with what type of system storage will be organized, as the same floor area can produce different results depending on the chosen solution. Proper planning does not mean building the largest possible space, but rather defining the optimal volume based on operational efficiency.”
What data is essential for proper planning?
“Accurate planning requires detailed operational data. This includes product volume and structure, the number of SKUs, turnover indicators, seasonality dynamics, and peak loads. The frequency of inbound and outbound operations and the average order size are also important. Without this data, planning is based on assumptions, which can lead to operational challenges in the future.”
What criteria should be used to assess location, and what risks does an incorrectly selected location create?
“The main criteria for selecting a location are maintaining supply chain efficiency, availability of proper infrastructure, transport accessibility, proximity to the city or key market, and the possibility of future expansion. It is also important to consider local regulations, for example restrictions on trailer and truck movement within the city, time limitations, or other municipal requirements that directly affect operations.”
What technical details require special attention during the design phase?
“During the design phase, particular attention must be paid to the correct layout of structural spans and the distance between them, as well as industrial flooring requirements, which must comply at least with the DIN 18202 standard. Optimal working height, HVAC and fire safety systems must also be considered, along with the proper arrangement of racking systems and correctly defined equipment maneuvering areas to ensure safe and efficient operations.”
How should future expansion possibilities be considered?
“The possibility of future expansion must be considered at the initial planning stage, so that additional space can be easily integrated with the existing infrastructure.”
What factors most commonly lead to budget overruns?
“Budget overruns are most often caused by incomplete or incorrect planning, inefficient space layout, improper integration of operational processes, and radical changes introduced during the construction phase.”
Your main recommendations for companies planning a new warehouse
“I would advise companies that need a warehouse for their own operations to fully align the building concept with operational processes, not the other way around. They should properly define a space that meets current needs while also accounting for annual growth, ensuring that the infrastructure continues to effectively support business development in the future. It is also important to select a strategic location close to the city, major highways, and key facilities, while at the same time minimizing potential risks related to future urban regulatory restrictions.”
