Thinking of building a new warehouse? Before you do, consider whether you really need one because optimizing your current warehouse can also provide the improvements you’re looking for.
By rethinking layout and processes, you can enhance efficiency and capacity without the costs of a new build.
Watch the video below to learn how to maximize your existing space.
Evaluating the Need for a New Warehouse
When companies face space issues, moving to a larger warehouse often seems like the only solution. However, in my 26 years at Logistics Bureau, I’ve rarely seen businesses actually need a bigger warehouse. More often, we’ve found ways to optimize existing spaces efficiently.
Assessing Your Inventory
A common reason for needing more space is excessive or poorly managed inventory. Businesses often overstock or mismanage inventory distribution, especially during uncertain times like COVID-19. Before considering a move, analyze your inventory levels and organization. Look beyond overall stock quantities and evaluate whether you’re holding too much slow-moving or incorrect inventory. Efficient inventory management can often free up space without the need for relocation.
Optimizing Layout and Picking Methods
The layout of your warehouse can significantly impact space utilization. For instance, adjusting aisle widths and investing in different types of material handling equipment (MHE) can lead to substantial improvements. In one case, by changing aisle configurations and using articulated forklifts, we increased warehouse capacity by 30% without disrupting operations. Additionally, revisiting picking methods can enhance space efficiency. Consider whether automated systems or different picking strategies could optimize your warehouse cube.
Don’t rush to expand your warehouse before exploring these optimization strategies. By re-evaluating your inventory management, layout, and picking methods, you might extend the life of your current facility and avoid the costs and disruptions associated with moving. If you need assistance with these processes, feel free to reach out for help.
For further details, watch the video above.
Related articles on this topic have appeared throughout our website, check them out:
- Are You Sure You’re Out of Warehouse Space?
- 10 Proven Principles for Best Warehouse Design and Operation
- Improve your Warehouse Productivity Through Product Slotting
- Warehouse Product Slotting: The Ultimate Guide
- A Recommended Approach to Warehouse Layout and Operational Design
Editor’s Note: The content of this post was originally published on Logistics Bureau’s website dated August 16, 2023, under the title “Do You Really Need a New Warehouse?“.
