As demand increases, many businesses face the challenge of limited warehouse space. Rather than expanding or relocating, optimizing your existing facility might be a more practical solution.
In the video below, I provide actionable tips to help you make the most of your current warehouse and avoid the need for a new one.
Optimising Warehouse Space Efficiency
A useful guideline is to use around 85% of your warehouse’s total capacity. For example, if your warehouse has 10,000 pallet slots, try to utilize about 8,500. Keeping some space available is essential for smooth operations, much like leaving some parking spots open in a crowded lot. This approach helps avoid inefficiencies and maintains productivity.
Enhancing Inventory
Effective inventory management can help prevent warehouse congestion. Common issues include excessive stock, poor purchasing decisions, and inaccurate forecasting. To address these problems, balance your inventory purchases with your available space and consider the total cost of ownership. Regularly reviewing and adjusting inventory levels can improve space utilization and prevent overcrowding.
Optimising Warehouse Layout Through Slotting
Slotting, or arranging inventory efficiently, is crucial for improving warehouse performance. If picking tasks are spread throughout the warehouse, it results in wasted time and increased labor costs. By positioning high-demand items closer to the dispatch area, you can reduce travel time and boost productivity. Effective slotting also helps maximize storage space, which is particularly valuable in high-density environments.
Utilising High-Density Storage Solutions
To enhance your warehouse’s capacity, consider high-density storage solutions. Switching to articulated forklifts allows for narrower aisles, freeing up space for additional storage. Vertical lift machines and carousels can also improve efficiency, especially for smaller items. Adding mezzanine floors provides extra storage and picking slots without expanding your warehouse’s footprint, effectively utilizing vertical space.
Reevaluating Your Warehouse Operations
Finally, reassess your overall warehouse operations to identify areas for improvement. Small adjustments, such as reorganizing inventory layout or implementing new storage solutions, can make a significant difference in space utilization. By continuously optimizing your warehouse practices, you can accommodate growing demands without the need for costly expansions.
Related articles on this topic have appeared throughout our website, check them out:
- Warehouse Product Slotting: The Ultimate Guide
- KPIs for Your Warehouse: How to Choose and Use Them
- The 7 Principles of Warehouse and Distribution Centre Design
- Warehouse Design – Rules of Thumb… And a Checklist
- Planning a Warehouse Network and Design: Key Factors to Consider
Editor’s Note: The content of this post was originally published on Logistics Bureau’s website dated October 02, 2024, under the title “Warehouse Capacity – How to Increase It and Avoid Moving“.
