Planning for the new changing world is a challenge for many warehouse managers when the dynamic of storing inventory is rising. Optimising the existing warehouse space can be an unmoveable parameter you must work with. According to Peter Evans, National Director of Industrial Advisory, Occupier Services, “vacancy rates for industrial assets have plunged to a record low of 0.6 per cent nationally”.
Businesses are experiencing the rise of e-commerce and higher demand for products to fulfil customer demands. This creates extraordinary challenges for warehouse managers and generates valuable business opportunities. The challenge in 2023 and beyond for warehouse managers will be how to optimise their existing industrial space strategically.
Strategically optimising the existing warehouse space encompasses design, operational costs, logistics, developing performance and productivity and environmental considerations to maximise returns and have the optimal solution within their warehouse. It is no easy task, but that is where many warehouse managers are starting in 2023.
Measuring your existing warehouse space usage
The first step is to review your current space utilisation and know exactly how your warehouse space is used. The following four metrics will get guide you through the process.
Step 1: Calculate Your Total Warehouse Size
Step 2: Calculate Your Storage Area Usage
Step 3: Analyse Your Potential Storage Area
Step 4: Calculating Your Space Utilisation
Download the guide below with how to complete Steps 1 through 4
Optimising the existing warehouse space
For some companies, small gains may be made within the existing infrastructure, whilst years of poor design may be holding the business back for others. Many racking systems were installed on the principle of just adding selective racking in rows within a space without a long-term view of expansion.
Although serviceable, it is far removed from efficiencies and optimising storage space. It can be as simple as changing the direction of the flow of the pallet racking through to using a combination of different types of pallet racking to increase the storage density of some or all your products.
With the changes in the supply chain demand and improved handling equipment, warehouse fitouts can easily become outdated and a barrier to productivity.
Choosing the Right Storage System to Increase Storage Volume and Density
A higher number of facilities use selective pallet racking than any other type available, and it may not be the ideal storage system for your warehouse. If you are looking for more storage volume and density, using a professional warehouse storage design consultant provides you with all the options available. Through 3D modelling by the designers, you can view exactly how the warehouse will operate and consider any necessary adjustments before the installation.
A design consultant can guide you through what will work best for you, and you must be prepared to brief the consultant. In preparation for your meeting, you need to prepare to answer questions such as:
· Do you need to increase the storage volume, and by how much?
· What changes are anticipated in SKU profiles?
· Do you need high storage density?
· Is selective picking an ongoing part of your inventory management?
· Are aisle widths fully utilised and all vertical space occupied?
· Does the storage solution need to accommodate a last-in/first-out (LIFO) inventory or first-in/first-out (FIFO) management system?
· Is your inventory made up of a high number of SKUs, or is it a volume storage business?
Working with your warehouse design and layout consultant, you can identify a storage solution within your existing facility that supports the business’s current and future growth requirements.
These are some options available for you in pallet racking and storage.
With all types of racking, there are trade-offs for what each can deliver as part of your storage system. Your consultant can guide you on the best choices for your warehouse.
If you found this article interesting, you may also be interested in reading the following:
- How Paperless Warehouse Operations Increase Productivity and Efficiencies
- How Businesses Can Properly Maintain Pallet Racking
- Racking Protection: A Necessity For Every Warehouse
- Accelerating Your Investment: Gaining a Strong Warehouse Automation ROI
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