Running a large-scale warehouse is no joke. And so, you need to ensure your warehouse or distribution centre runs as smoothly and efficiently as possible.
Warehouse optimisation not only makes your space tidy and clean but also leads to streamlined logistics operations, reduced operational costs and increased warehouse efficiency.
Physical expansion is not always a feasible solution, so, this article focuses on every crucial aspect of optimizing a warehouse for more storage space without expanding.
In this useful guide on maximising warehouse space, we will shed light on
Running a warehouse is challenging; from receiving, storing, packing, and shipping the products, every stage of the process requires detailed attention. Handling warehouse operations inefficiently can result in unhappy customers and big losses.
This is where optimising the warehouse space helps. It integrates the overall activities of the business from start to finish- product flow, inventory management, transportation, and delivery.
Warehouse space optimisation solves the problems and sets your warehouse up for more orderly activities for happier customers and profitable results!
An optimised warehouse not only helps you manage and meet your business goals; but also creates a safer work environment for your employees.
Want to know how to reduce warehouse costs? Have a peek at the blog for cost-effective warehouse operations.
A warehouse with insufficient space can have several problems. There may be a good cause for concern, or it may be a matter of inventory management.
As the saying goes, “As for the empty space, it will be eventually filled sooner or later.”
A warehouse runs out of space due to some of these common reasons:
So, the question arises, how to make the most out of the warehouse?
This section explains all the practical and best ways to optimise warehouse storage space for finely-tuned logistics operations.
Installing a mezzanine is one of the most used tricks to maximise warehouse space. Your square foot gets increased without the need for expansion. Mezzanine installation may be costly; however, it is easy to install and sturdy also.
As you take advantage of the unused warehouse height, your storage space can actually get doubled with a mezzanine!
TIPS:
Find the spaces you never thought you had!
You will often find space above the receiving or shipping doors where you can store
Finding and utilising such underused areas lead to warehouse space optimisation, contributing to effective business!
As you begin to optimise your warehouse storage space, analyse exactly how much your warehouse is currently used and what it is used for. This will help you plan the next steps to achieve the optimisation results easily.
Reducing the space between racks- one of the simple yet effective ways to improve warehouse storage space.
Many warehouses keep the aisle width more than necessary to ensure the machinery and the employees move smoothly. However, the change may show amazing results if one shrinks the 14-foot aisle even by a few feet.
Such changes seem insignificant on a smaller level, but when done for the whole warehouse, it may even make enough space to create a new aisle!
Remember: As you reduce the aisle width, keep the equipment in mind and the employee's safety to move around freely.
Increase your storage by making use of the vertical space in your warehouse. This is one efficient way to optimise the warehouse space.
The space is right there. You just have to use it effectively!
However, bear in mind these aspects before maximizing the vertical storage of the facility:
Our article dedicated to essential warehouse KPIs will help you further optimize your warehouse operations.
Warehouse space optimisation is a complex process. One wrong decision can affect the other activities significantly. For instance, choosing the wrong pallets may lead to storage issues for a facility. Hence choose wisely!
By using the right pallets, you can customize your storage needs and improve your warehouse storage.
Cross-docking is an effective means to optimise warehouse space utilisation. It minimizes the use of storage as the inbound stock is received, sorted, scanned, and loaded onto the outbound carrier. Cross docking reduces the material handling and the need to store the products in the warehouse.
Though it may be tricky to handle cross-docking activities, it can surely optimise warehouse space.
Usually, facilities have separate receiving and shipping docks. It takes up unnecessary space and wastes time, travelling from one dock to another. Hence, combining the two can free up space and streamline activities.
If you store the same item in different places, you might want to reconsider storing it that way. Combining them will help you optimise your warehouse storage and maximize utilization.
Some benefits of consolidating the items at a single location are
Compared to manual work, automated storage and retrieval systems reduce errors and increase work efficiency. As a great way of optimising the warehouse space, using automated storage systems like conveyor belts, forklifts, mini loaders, and tote shuttles can help use the space to a maximum and minimise labour requirements.
If your facility or warehouse uses standard-sized containers to store different items, it might be time to drop the ‘one size fits all’ approach.
Some items cannot be placed directly on the rack and are kept in a container for efficient storage. The volume of a container filled with one item may be optimal; however, the volume of a container filled with two items of different shapes may be wasted.
According to the old notion, storing items in a standardized container fills up the rack and uses the space optimally. But that’s not true. Using containers of different shapes and sizes for different types of inventory is the more effective solution to optimise warehouse space utilisation.
One of the easiest ways to optimise warehouse space is to get rid of obsolete inventory. Many facilities and warehouses store more than necessary items, especially those dealing with seasonal demands.
According to experts, in warehouses, more than 35% of the inventory in the warehouse is obsolete or dead.
Most warehouses overstock regularly, and this isn't an uncommon occurrence.
For example, facilities may overbuy materials at a discounted rate or to keep up with the upcoming product demand. In such cases, you might consider storing such items at an off-site location or a trailer.
This will allow you to make more space for warehouse activities while also ensuring you have inventory on hand.
For warehouses storing and shipping large items, it would be feasible to consider using drop shipping to cut down in-house inventory and expenses.
Drop shipping is increasingly popular among freight and logistics companies, as it allows them to avoid warehouse stocking by shipping directly from suppliers to the end users, i.e. customers.
Floor is one of the most accessible and useful locations in the warehouse. Whichever storage system you use, your floor should always be clear for active inventory only.
So, if your floor is a mess, here’s how to clean it up to maximise the floor space
Storing too much of an item is not uncommon in a warehouse. However, overstocking the inventory does take up way more space. Thus, to optimise your warehouse space, find feasible solutions for such scenarios.
Note: To ensure the policy benefits your warehouse operations, find solutions that fit your criteria.
Another common yet helpful way to optimise warehouse space utilisation is to store products in trailers. Many companies dealing with seasonal products bring in trailers and pay demurrage charges for the same. Storing extra items in trailers optimises warehouse storage, and there is no need for building expansion!
When you have different options, go for the ones that work best for your facility, i.e. the simple ones. For example, if the warehouse needs extra storage space, you can install vertical racks or expand the space. Consider all the possibilities, but choose the one that serves the purpose perfectly without going overboard.
Warehouse space optimisation may seem challenging, but when done right with planning and strategy, you will find these solutions more straightforward than you think.
However, there is no one size fits all answer, but combining the different strategies and implementing what works best for your warehouse can deliver great results and maximise warehouse storage space utilisation.
Prime Associates hopes these 17 tips will help you optimise warehouse storage space, reduce costs, increase efficiency, and streamline logistics operations. Our team would be glad to assist you if you want a fresh perspective on optimising your warehouse facility.
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