Understanding, planning, and using buffer stock correctly. When processes in a company come to a standstill and lead to disruptions, this can have a variety of causes. The delivery of components for production can be delayed and available transport routes can be disrupted or blocked. Market demand is subject to fluctuations in demand. Technical problems within the company itself can also impair production processes and the associated supply chain. A buffer stock can compensate for the aforementioned uncertainties.
What is a buffer stock?
A buffer warehouse connects two consecutive process stages to ensure smooth operation without disruptions in production, order picking, or delivery.
Advantages and disadvantages
A buffer warehouse offers the following advantages:
- Increase productivity by utilizing the required space and thus ensuring the supply of the various processes.
- The availability of goods in buffer stock prevents delays in material flow and interruptions in production processes.
- The connection with other work areas, such as order picking, set formation, replenishment control, and also the storage of goods, speeds up processes.
- Optimal use of storage space also leads to synergy effects.
- Products in the buffer can be subjected to subsequent testing without affecting the process itself.
Disadvantages arise from:
- Costs for the storage system, setup, and storage (required space, shelves, etc.).
- Organizational and administrative costs of buffer stock processes.
Concept of a buffer stock
Materials that are needed again in the production process after a short period of time are temporarily stored in a buffer warehouse (also known as a short-term warehouse, equalization warehouse, or interim warehouse).
By definition, buffer stock must ensure a smooth and uninterrupted production process. In logistics, temporary storage is often required at goods receipt and goods issue points or between two consecutive production stages. In buffer warehouses, there is usually no fixed storage location for the stored goods. The structure and size of the buffer warehouse depend on the operational requirements in the process stages, the resulting storage costs, and the risk of possible disruptive factors.
When planning a buffer warehouse or short-term storage facility in intralogistics, the available buffer space, the production program, the storage system, and the workflows that are carried out must be taken into account. In order to be able to store the required materials, in addition to sufficient storage space, a continuous and punctual supply to the production process and the capacity for incoming goods must also be ensured.
In addition, a buffer warehouse must be set up where the goods are needed. It should be located as close as possible to the points of consumption. Buffer warehouses can be designed as block storage (without shelves) or with shelves, e.g., as single-sided shelving or as a pallet flow racking system (PDS) with shuttle support, or even as a carousel rack.
Conclusion
Depending on the process step, short-term storage creates a reserve between two work stages and can compensate for fluctuations in the process, thereby preventing production downtime. There is a direct relationship between the security and cost-effectiveness of a buffer warehouse.
While a small warehouse with few storage spaces can be operated more economically because it incurs lower costs, an insufficient buffer can then lead to system downtime. A large warehouse increases security, but also increases the costs for setup and operation.
