Optimizing your warehouse space takes a lot of time and effort.
And let's be honest, who has the time or desire to tweak their existing setup?
Optimized warehouse space can have a massive impact on your success.
A 37% increase in the number of orders picked per labor hour and a 67% increase in throughput capacity per shift.
But be careful, there is a fine line between proper warehouse use and a nightmare that is the source of problems and delays hindering your growth and success.
When your business is still expanding and growing, you should ensure that your warehousing facility is flexible enough to handle the changes. While it's easier to look for more space, it can lead to higher overhead costs.
And overhead costs can sabotage your bottom line.
Most business owners have trouble in utilizing their space the right way.
Finding the right combination can be hard, and downright frustrating.
Here are three steps that can help improve your warehouse space utilization.
Step 1: Determine Storage Capacity
The first thing that you need to do is determine the total warehouse density, and compare it to what you are using right now.
The fastest way to do this is by taking the length and width, as well as the maximum height for racks and equipment.
The height depends on the needs of the product that you are going to store in the warehouse, and what system you invision on using (I.e, Mezzanine, etc.)
After you have determined the theoretical warehouse capacity, the next step is to determine the actual usable space. This is usually 85 percent of the computed storage density.
Anything that’s above the percentage will only lead to disorganization and delays.
By knowing the available space and target density, you will be able to improve your warehouse utilization.
However, there are still some issues that you need to work out in order to improve the productivity of your warehousing operations...
Step 2: Layout of the Warehouse
After you have computed the available space in the warehouse, the next step is to design its layout.
While the task might seem simple, space layout is an important step that can help increase utilization of the space.
Proper use of space will also reduce handling issues in the future.
The positioning of the product racks is also crucial. The size, type and number you need do vary depending on the setup. The aisle widths will also vary based on the positioning of the racks.
Once the rack layout has been created, you will then group similar items together to improve your daily operations.
Delays are caused by warehouse design mistakes leading to bottlenecks and restocking issues.
Step 3: Type and Quantity of Pallet Racks
Finding the right pallet rack will help you fully utilize every inch of warehouse space.
When looking for the right racks, you need to consider the products you desire to be stored and the warehouse layout you have planned.
There are six elements that you need to consider, which are depth and width of pallets - dimension of loads, depth of uprights, beam widths, beam capacity, and upright height.
Our free Rack Design Guide will help you determine what you need to optimize the warehouse utilization.
This will reduce delays and at the same time improve the efficiency of the operations. Win, win.
With the use of the guide, you will be able to determine the quantity of products, the quantity of racks required, and the sizing of the pallets.