Whether you're planning a new facility or trying to improve the efficiency of an existing distribution center, there are several design-planning fundamentals that can benefit your materials handling operation. That's according to Kevin Thuet, director of advanced applications for Eskay Corp. (www.eskay.com), the Salt Lake City, Utah-based manufacturer of materials handling systems.

Speaking at the National Conference on Operations and Fulfillment in Nashville, Tenn., Thuet suggested that management must first take a hard look at current operations. "The current system usually is not something that can just be band-aided and fixed. You cannot automate inefficiencies," he said.

Thuet then outlined steps for designing a high-speed distribution center. The first step, he said, is to establish a team consisting of a strong leader and representatives from every key department. The team should walk through the facility to observe how materials flow and identify any inefficiencies that may exist. Next, the group should conduct an in-depth study of the operations, including the flow of materials and information, order profiles and areas that cause bottlenecks.

After that analysis has been completed, the team should evaluate design possibilities and select a preliminary design. Next, managers need to assemble an executive profile that will justify the project to senior management and explain the steps involved and the anticipated costs.

Once the project has been approved, the team can choose a design-build partner that can test the design through simulations. When a satisfactory design has been selected, the company should then assign project managers who will be responsible for implementing the plan.

The process doesn't end there, though. Even after completion, internal systems should be audited regularly to achieve continual improvement, Thuet said.

"You do not have to be a Nike or a Dell to do this process," he explained. "It does not require a $100-million investment. Anyone can gain efficiencies."