The capacity of a warehouse can significantly impact the efficiency and profitability of your business. An un-optimised space may result in higher storage costs, missed sales, and decreased employee productivity.
With this in mind, here at PALLITE® we’ve put together the following guide that will show how to optimise your warehouse into a space that better contributes to the long-term success of your company.
How to calculate the storage capacity of a warehouse
The first step in optimising your warehouse is to determine its current capacity. To calculate the value, you should measure the volume of the building by recording its length, width, and maximum stack height. Only the designated storing section of your building needs to be measured for the calculation. Keep in mind that the recorded stacking height will be affected by variables like lights and sprinklers, which will reduce the value.
The second part of the calculation is the cubic storage capacity of your storing space. Each row and pick bin used for storage in your warehouse will need to be measured and added together to get the value. It is important to note that the number is only theoretical, as it does not consider the space required to move or store items in the warehouse.
Your current storage capacity will be the cubic storage capacity of your storage space divided by the building’s volume. For example, if your distribution centre has a square footage of 20,000 and a maximum height of 20 feet, then the volume will be 400,000 cubic feet. Having a theoretical cubic storage capacity of 100,000 cubic feet would mean your warehouse’s storage capacity only occupies 25% of the building.
How to increase warehouse storage
You can use several methods to increase your warehouse’s storage without needing to construct additional space. The types of storage shelves and pick boxes in your distribution centre may make a considerable difference in your total capacity. Improper shelf heights will underutilise the vertical space in the building, for example, and can hinder employee productivity by reducing item accessibility.
The width of each aisle may also be changed to increase your storage capacity. Reducing the space between the rows of shelves and/or pick slots can allow for additional rows to be incorporated into the building. However, you should measure all equipment used in the warehouse before committing to a decreased aisle width to prevent the space from being too small to accommodate your lifts.
Additionally, removing clutter and debris from the warehouse can reveal additional space, which will also enhance the attractiveness of the facility to investors and keep employees safe. Maintaining a clean distribution centre can prevent floor space from being consumed by unnecessary items and set the standard for how the building should look.
Optimising your warehouse to maximise space
Knowing how to calculate your storage capacity can help maximise the available space in your warehouse. Once you have measured the building’s volume, hypothetical layouts can be inserted into the equation to determine the best dimensions for increasing storage capacity before putting in the time or resources involved with setting up a new system for the building.
Experimenting with different storage systems can reveal which options will make the most of your warehouse’s space. A business may find that their facility can accommodate traditional double-reach or drive-through metal racking after measuring their distribution centre. Alternatively, you may find your warehouse lends itself to more lightweight yet flexible storage systems that allow pickers to work more efficiently, such as PALLITE® PIX® , PIX® SLOTS or PIX® SLOTS (Angled).
There may even be underutilised sections of your warehouse that can be repurposed to increase your total capacity. Racks can be installed above dock doors or over cross aisles. However, it is important to check your building’s codes before adding the shelves to ensure the action is legal.
Warehouse optimisation plays a crucial role in improving company profitability, efficiency, and product capacity, which is why knowing how to optimise space is important for any business. Utilising the provided guide will help you find and create additional space in your facility to ensure it reaches its full potential.
Technology and Software Solutions
In the realm of warehouse optimisation, technology plays a pivotal role in enhancing efficiency and productivity. Key technological solutions include:
- Warehouse Management Systems (WMS): These systems are essential for managing inventory levels, tracking products throughout the warehouse, and optimising order picking and processing. A well-integrated WMS can significantly reduce errors, save time, and improve overall inventory management.
- Automated Storage and Retrieval Systems (AS/RS): These systems automate the process of retrieving and storing items, which can dramatically increase efficiency, especially in warehouses with high volumes of goods. AS/RS can minimise the need for manual labour, reduce errors, and expedite the picking process.
- Robotics and Automation: The use of robotics in warehouses is becoming increasingly popular. Robots can perform repetitive tasks, such as moving goods, with greater accuracy and speed than human workers.
- Internet of Things (IoT): IoT devices can be used to track inventory in real-time, monitor environmental conditions, and gather data for predictive analytics. This can help in making more informed decisions about inventory management and operational efficiency.
Sustainability Focus
Optimising warehouse operations isn’t just about increasing efficiency; it’s also about reducing the environmental impact. Sustainable storage solutions can contribute significantly to this cause:
- Energy-Efficient Lighting and Equipment: Replacing traditional lighting with LED fixtures and using energy-efficient equipment can lower energy consumption and reduce costs.
- Solar Power: Incorporating solar panels can reduce reliance on non-renewable energy sources, thereby decreasing the carbon footprint of warehouse operations.
- Green Building Materials: Using sustainable materials for warehouse construction and racking systems can reduce environmental impact.
- Recycling and Waste Reduction: Implementing recycling programmes and reducing waste in the warehouse can contribute to sustainability goals.
- Efficient Use of Space: Optimising space not only improves efficiency but also reduces the need for additional construction, thereby preserving natural resources.
Cost Analysis
Understanding the costs and potential return on investment (ROI) is crucial in decision-making for warehouse optimisation:
- Initial Investment: This includes the cost of purchasing and installing new racking systems, technology solutions like WMS or AS/RS, and any renovations required for optimisation.
- Operational Costs: Ongoing expenses such as maintenance of equipment, software subscriptions, and energy consumption should be considered.
- Savings: Calculate the expected savings from reduced labour costs, lower error rates, and increased productivity. These savings can contribute significantly to the ROI.
- Environmental Incentives: Some sustainability initiatives may qualify for government incentives or tax breaks, which can offset initial costs.
- Long-Term Benefits: Besides immediate financial gains, consider long-term benefits like increased scalability, improved customer satisfaction, and enhanced brand reputation due to sustainability efforts.
How to Maximise Storage Capacity in Your Warehouse: Checklist
- Conduct a thorough assessment of your warehouse space to determine the current storage capacity and identify any potential areas for improvement.
- Invest in storage solutions such as pallet racking, shelving, and bins that maximise vertical and horizontal space utilisation.
- Reorganise your warehouse layout to minimise the distance travelled by employees and equipment during order fulfilment.
- Implement a system for tracking inventory and order data to identify any inefficiencies and optimise storage location based on demand.
- Remove unnecessary items and clutter from the warehouse to free up space and improve safety.
- Train employees on proper warehouse organisation and maintenance to ensure consistent upkeep and optimisation.
- Regularly evaluate and adjust your warehouse storage strategy based on changes in demand, product mix, and other variables.
With this in mind, If you’re looking to better optimise the space in your warehouse using strong and flexible storage solutions that are also 100% recyclable, be sure to check out PALLITE®’s PIX® range.
For more information, contact us.
FAQ
- How can warehouses improve productivity?Warehouses can enhance productivity by implementing efficient warehouse management systems (WMS), automating processes with technologies like automated storage and retrieval systems (AS/RS), optimising layout for smoother flow, using data analytics for inventory forecasting, and training staff in best practices for organisation and maintenance. Regularly reviewing and adjusting strategies based on changes in demand and product mix is also crucial.
- What causes lack of space in warehouse?Lack of space in warehouses is often caused by inefficient layout design, poor inventory management leading to overstocking or underutilisation of space, inadequate shelving and storage solutions, and failure to optimise vertical space. Additionally, clutter and unorganised inventory can consume valuable space, reducing overall capacity.
- How do you fix warehouse inventory issues?To address warehouse inventory issues, implement a robust inventory management system to track and manage stock levels accurately. Regular audits, optimising storage solutions, reorganising warehouse layout for better accessibility, and employing technology like barcoding or RFID systems can also help. Training staff in efficient inventory handling and using data analytics to predict demand trends are essential steps.
- What is poor warehouse layout?A poor warehouse layout is characterised by inefficient space utilisation, leading to congested aisles, difficulty in locating items, and increased travel time for picking. It often results in bottlenecks, safety hazards, and reduced productivity. Such layouts do not maximise vertical space, have inadequate or mismatched shelving, and lack consideration for the most efficient flow of goods and personnel.
- What are the 4 major types of warehousing?The four major types of warehousing are:
- Public Warehouses: Operated by business entities and available to rent by companies.
- Private Warehouses: Owned and operated by merchants or manufacturers for their inventory.
- Bonded Warehouses: Used for storing imported goods pending customs duties.
- Climate-Controlled Warehouses: Specialised warehouses with controlled temperature and humidity for sensitive goods.
