Warehouse capacity issues are a common challenge, but solving them doesn’t always require moving or leasing new space.
In this discussion, I’m joined by John Monck, our warehousing specialist at Logistics Bureau, to share practical, low-cost solutions to maximise your existing space and extend your warehouse’s life.
Watch the video below!
Warehouse space is a common concern for many businesses today, and I frequently hear about companies running out of capacity. The dilemma often comes down to whether to invest in a larger facility or lease additional space.
However, there are practical solutions that can help make the most of existing space before resorting to such measures.
Make the Most of Your Vertical Storage
One of the first things I discuss with businesses is their use of vertical space. Many assume they are out of room, but they may not be utilizing the full height of their storage systems. John Monck, a warehouse expert at Logistics Bureau, often finds that adding extra shelves or beams to existing racking systems can free up significant space without the need for major investments. By increasing the number of levels in your racking, you can take full advantage of your cubic capacity and maximize storage without expanding your footprint.
Re-evaluate Your Inventory for Better Space Utilization
A major factor contributing to warehouse congestion is inefficient inventory management. Excess stock, particularly slow-moving or obsolete items, can take up valuable space. John recommends identifying “SLOB” (slow-moving and obsolete) inventory and considering ways to relocate or even remove it from the warehouse. This approach not only frees up space but also helps focus on the most relevant and high-demand items. Consolidating this slower inventory and placing it in less accessible areas or off-site can create significant space for more active goods.
Managing Seasonal Demand Without Expanding Your Facility
For many businesses, seasonal fluctuations in demand can create sudden spikes in inventory. Instead of rushing to increase your warehouse capacity during peak periods, John suggests exploring off-site storage solutions. These temporary storage options can be a cost-effective and flexible way to manage seasonal surges in inventory, such as during the pre-Christmas rush. This approach reduces the need for long-term investments in space that may only be necessary for a few months each year.
High-Density Storage Solutions
If you’re looking for long-term solutions, high-density storage systems can be a game-changer. John highlights systems like vertical lift machines, automated shelving, or mini-load systems, which make better use of available space. These systems may require an upfront investment, but they offer long-term savings by significantly increasing storage density. Additionally, they improve productivity by streamlining the picking process, often through “goods-to-person” technology that reduces the need for manual handling and optimizes the flow of goods within the warehouse.
Small Adjustments to Layout Can Yield Big Results
Another simple yet effective way to maximize warehouse capacity is by making adjustments to the layout. In one case, narrowing aisles and switching to more efficient forklifts helped a client increase storage capacity by 30%. These changes allow for more racking space without the need for additional square footage. Additionally, optimizing your aisle widths and choosing the right equipment for your warehouse can improve both space utilization and overall efficiency.
Maximizing Your Current Space Before Considering a Move
Increasing warehouse capacity doesn’t always require relocating to a bigger facility. By implementing a few smart strategies, such as optimizing vertical storage, improving inventory management, and investing in high-density systems, businesses can get more out of their existing space without the cost and complexity of moving.
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
