The Challenge
A major logistics service provider in North America, known for its extensive network of warehouses and delivery services, faced a complex challenge in setting up a new warehouse. With operations that spanned express deliveries, urban and intercity transportation, the client needed a highly efficient layout to manage high shipment volumes, varying demand patterns, and diverse service timelines.
However, determining the optimal warehouse layout posed significant risks and costs. Testing different layouts in the real world would have involved high implementation costs and potential disruptions. The client required a solution that could simulate real-world warehouse operations and evaluate multiple layout scenarios without interfering with ongoing operations.
The Solution
To address this challenge, Evalueserve deployed an Agent-Based Discrete Event Simulation model using AnyLogic software. This innovative simulation framework enabled the logistics client to create a virtual replica of the warehouse environment. The solution incorporated complex variables such as:
- Arrival rates and patterns of trailers
- Waiting and service times
- Employee scheduling
- Forklift usage
- Bay utilization
- Shipment types and volumes
The team analyzed historical data to determine statistical distributions for input parameters. Each potential layout was modeled and tested across varying business scenarios to determine its impact on key performance indicators.
Business Impact
The simulation model yielded comprehensive operational insights and enabled data-driven decisions that led to a significant uplift in warehouse performance:
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Reduced congestion and wait times across processes
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Improved bay and resource utilization, leading to more shipments handled per hour
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Enhanced productivity through optimized forklift travel distances
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Minimized operational costs by identifying inefficiencies in layout and resource allocation
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Accelerated layout selection, reducing implementation delays and uncertainty
The simulation exercise also facilitated quicker judgments, eliminated bias in layout selection, and provided a reliable, future-ready model for decision-making. The final selected layout, identified through scorecard analysis using ANOVA and demonstrated statistically significant gains in operational KPIs.
Overview & Impact
A major North American logistics provider partnered with Evalueserve to design and test optimal warehouse layouts using advanced simulation modeling. The virtual approach reduced risk, enhanced decision-making, and delivered measurable gains in operational efficiency.
