Re-Design Warehouse Layout Efforts to Improve Fertilizer Distribution Efficiency at CV Jago Subur

Abstract

Warehouse layout plays a crucial role in enhancing the efficiency of product distribution. CV Jago Subur, a fertilizer distribution company, faces challenges due to a disorganized warehouse layout, resulting in increased operational costs and decreased efficiency. This study aims to identify the existing warehouse layout, design a new layout using the shared storage approach, analyze the efficiency levels of both the existing and new layouts, and develop a simulation of the new layout. Primary and secondary data were collected through observation, interviews, and warehouse documentation. The analysis methods used include Euclidean distance for measuring the movement distance of each product, ABC analysis for product clustering design, material flow analysis for efficiency evaluation, and layout simulation using AutoCAD.The research findings indicate that the existing warehouse layout is inefficient, with long product travel distances and high material handling costs. The new layout design with the shared storage method and product cluster design reduces travel distances by 24.9% and decreases material handling costs by 28.9%. The layout simulation using AutoCAD demonstrates that the visualization approach produces a precise and efficient warehouse layout. Overall, the operational cost reduction reaches 33.16%, equivalent to IDR 195,759,375 per month. The new warehouse layout design with the shared storage method can improve the distribution efficiency of fertilizers at CV Jago Subur. The novelty and advantage of this research lie in producing a new warehouse layout that projects operational cost reduction, particularly for fertilizer distribution warehouses. This study can serve as a reference for improving fertilizer distribution efficiency, reducing warehouse operational costs, and increasing company profits.