If you’re having problems with warehouse space, like many others, moving to a new one isn’t always the answer.
Make sure you’ve explored other options to save space effectively.
Check out the video below for insights on this topic.
Warehouse capacity is a common challenge faced by many businesses today. The idea of moving to a larger facility or leasing extra space often arises, but before jumping to such conclusions, it’s worth considering some cost-effective strategies to optimize existing warehouses.
John Monck, a specialist consultant in warehousing at Logistics Bureau, offers valuable insights into how businesses can create more space without the need for major investments.
Making Use of Vertical Storage
John Monck emphasizes the importance of looking beyond just location-based capacity. When warehouses feel full, it’s often because the locations are fully occupied, but there may still be unused cubic capacity. By focusing on vertical storage, businesses can make better use of the space already available. One of John’s key tips is adding extra beams or shelves to create additional levels, effectively compressing the free space and improving storage efficiency. This low-cost approach can significantly increase storage capacity.
Reviewing Inventory: Slow and Obsolete Stock
Another major factor contributing to space issues is excess or obsolete inventory. John points out that slow-moving or outdated items can take up valuable storage space, reducing the overall efficiency of the warehouse. By identifying and removing slow and obsolete stock—referred to as “SLOB” (slow and obsolete inventory)—businesses can make room for more active items. John recommends consolidating these items into higher racking areas or commingling them in less accessible locations, thus freeing up prime space for products that are in higher demand. This inventory management approach can make a significant difference in improving warehouse capacity.
Handling Seasonal Inventory Surges
For businesses with seasonal inventory fluctuations, such as those preparing for the holiday rush, John suggests that building additional warehouse space may not always be the best solution. Instead, temporary options like off-site storage or even using external containers can help manage these seasonal peaks. John’s experience shows that during busy periods, it’s often more practical to consider flexible storage solutions rather than committing to long-term expansion. This approach allows businesses to cope with short-term inventory surges without incurring significant costs.
High-Density Storage Systems
John also highlights the value of investing in high-density storage systems, such as vertical lift machines or automated systems like carousels. These systems enable products to be stored more efficiently, utilizing the cubic space in the warehouse. With high-density systems, products are brought to the picker, reducing aisle space and improving productivity. Although the initial cost may be higher, the long-term benefits, including increased storage capacity and labor efficiency, often outweigh the investment.
Warehouse Layout: Maximum Efficiency
Finally, John Monck suggests that sometimes simple changes, like adjusting aisle widths and reconfiguring storage layouts, can significantly improve warehouse capacity. In one case, narrowing aisles and using different types of forklifts led to a 30% increase in available space. Such straightforward adjustments can lead to significant gains without the need for costly expansion.
By incorporating these strategies, businesses can make the most of their current warehouse space and avoid the high costs of moving or leasing additional facilities. As John Monck illustrates, thoughtful planning and simple adjustments can go a long way in optimizing warehouse operations.
Related articles on this topic have appeared throughout our website, check them out:
- How to Improve Warehouse Layout Efficiency and Save Costs
- The Past, Present, and Future of Technology in the Warehouse
- Common Warehouse KPIs: How to Choose and Use Them
- Spotlight on 7 Key Warehouse Processes
- Warehouse Design – Rules of Thumb… And a Checklist
