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Warehouse costs are on the rise: Are your warehouse solutions up to the challenge?

flexible high density storage bins

The UK is seeing one of the biggest warehouse shortages in decades. With so little space available, rents have soared, with the average rental costs for an industrial property up by 25%.

Unfortunately, these costs are unlikely to stop rising any time soon.

To keep operations running smoothly and expenses under control, manufacturers, eCommerce companies, and 3PL providers, are having to focus on optimizing available warehouse space, rather than expanding their square footage.

In this post we’ll examine why warehouse costs are rising so sharply. We’ll also demonstrate that having limited space needn’t mean limited options. By switching to PALLITE® PIX® warehouse solutions you can not only manage your existing warehouse resources more efficiently today, but plan for future growth.

Why is warehouse space getting more scarce?

The shortage of warehouse space is a nationwide problem, but it’s especially critical in the south of England. Slough, for example, has just 0.34 sq. ft of space available per registered business.

The reasons for this scarcity are wide-ranging.  Historical inventory stockpiling, supply issues, and the explosive growth in eCommerce, are just some of the factors hindering the supply of warehouse space.

Factors contributing to limited supply of warehouse space:

  • Covid 19: The pandemic has changed customer behaviors, with a major shift towards online shopping creating a surge in demand for warehousing space.
  • Stockpiling: Brexit increased the need to hold higher levels of stock in the UK, driving demand for extra warehousing facilities.
  • Gradual rise in manufacturing

Adding to the warehousing headache: The rise in labor costs

As if things aren’t bad enough, businesses in the logistics sector are also facing increased labor costs: The largest ever increase in minimum wages (which came in on April 1st) is due to have a big impact on the industry, at a time when companies are struggling to find and retain staff in any case.

Warehouse inefficiencies: Factors that could be holding you back

Despite the pressing need to manage existing warehouse resources better, inefficiencies are still often the norm, from misplaced items and wasted space, to unproductive pick and pack warehouse processes. This can lead to a significant drop in productivity, and decreased revenue, something no company needs in the present operating environment.

Two of the biggest problems in the warehouse include:

  • Cluttered aisles, with inefficient use of vertical space.
  • Disorganized storage of items, with workers spending excessive time locating items.

warehouse production line

PALLITE® PIX® units: Don’t move, improve

PIX® and PIX® SLOTS warehouse solutions offer clear benefits over traditional racking and cardboard alternatives. Storage units are lightweight, durable, and flexible – plus they’re specifically designed to help you make the most of the space in your warehouse.

Here’s how they can transform your warehouse operations:

  • Maximized space utilization: PIX® units feature customizable compartments to fit your specific needs.
  • Enhanced accessibility: PIX® solutions are designed to enable easy access to products, reducing picking times.
  • Adaptable and lightweight: Units are easy to assemble and move using a forklift, while they can also be manually handled with ease, cutting down on health and safety concerns.
  • Sustainable storage: PIX® systems are manufactured in the UK, US and Belgium using sustainable materials, and they’re 100% recyclable at the end of life.
  • Hard-wearing and sturdy: Each Pix unit can hold up to 500 kg and each pick face can hold up to 55kg. PALLITE® pix products are made from high-strength honeycomb paper board, making them not only robust, but eco-friendly, too.
  • The perfect upgrade for pick and pack warehouse systems: PIX® units can have anywhere from 3 to 400 pick faces, and these can come in single, or twin-sided form, to fit in with all types of warehouse designs.
  • Multi-purpose: PIX® units can be used in the majority of warehouse storage scenarios.
  • Seamless integration: PIX® units can replace conventional storage solutions and can be paired with other PALLITE® products to create the perfect storage system.

PALLITE® PIX®: Improving efficiencies for retailers, manufacturers, and logistics providers

Case study: Turtleson, a leading classic menswear provider.

Problem: Turtleson wanted to improve their warehouse storage and make it more flexible around their products. They were looking for a more durable alternative to the corrugated bin boxes they were using. Their current pick faces featured lips, which tended to rip and tear, and require constant replacement. They were keen to improve picking processes by switching to sloped pick faces.

It was important that the new storage system worked seamlessly with their automated GPS solution Six River Systems.

Solution: PALLITE® created a flexible, customized storage solution for Turtleson that featured sloped pick faces. PIX® bins are far more durable than Turtleson’s previous warehouse solution and don’t require renewing as frequently. Plus, the new warehouse storage bins work perfectly with Turtleson’s GPS system, to ensure a seamless transition.

Result: Turtleson were able to hit all their goals, and onboard a sustainable solution that would last them for the long term. They increased their storage capacity, due to the uniformity of pick bin alignment, which allowed for tighter aisles, and reduced price per pick location.

robotics in warehouse

Ready to make the switch? PALLITE® Group are here to help

At PALLITE® Group we’re committed to helping our customers enhance their warehouse operations and move towards a more sustainable future. Our experienced staff are on hand to help you maximize your current use of warehouse space, and, if required, we can create a fully bespoke solution for you.

  • We can help you assess your needs by evaluating your current storage layout to identify problem areas.
  • We’ll then help you plan your layout – one that maximizes vertical and horizontal space.
  • We can help you ensure your staff understands the new system for seamless adoption.

Don’t let warehouse inefficiencies hold back your warehouse operations or your profitability. Get in touch with us right away to discuss your options.

Customer Case Studies


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