The public storage and warehousing industry earned $25 billion dollars in 2019. There are over 21,000 businesses in this industry throughout the United States.
While the items stored in a warehouse differ depending on the facility, there's one thing they all have in common. Warehouse space optimization is always a pressing issue.
Fortunately, there are a few things you can do to optimize material handling supply.
If you're wondering how to make the most out of the warehouse space you have, keep reading. We're sharing with you our top five tips.
Warehouse Space Optimization Challenges
There are a few challenges every warehouse struggles with such as:
The manual process is often inefficient in warehouses. As a result, there are few common routes to pick items for shipment.
Not knowing what you have in stock hurts your business. Without a proper automated system, it's hard to keep track of what goes in and out of your warehouse.
Certain processes are unnecessary. When a company doesn't cut them out, it leads to inefficiencies that hurt the company's bottom line.
The process goes slower when no one knows where to find stored items.
Space Utilization and Warehouse Layout
Inventory goes down when space isn't utilized properly. A poorly laid out warehouse also increases the need for additional labor.
1. Optimizing the Layout
There are many options when it comes to increasing space. Changing the current layout using these methods can help:
- Analyzing the depth of storage
- Using revamping racks
- Reducing SKU quantity
- Using underutilized space
- Installing a mezzanine
2. Maximize Warehouse Material Handling Equipment
Investing in the right material handling equipment not only boosts productivity, it, more importantly, but also improves safety conditions. There were 882,700 cases that involved workers taking off of work due to workplace injuries in 2017.
The average time spent away from work that year was eight days.
Make sure your equipment can handle the loads you expect. Keep your aisles wide enough for heavy machinery to maneuver about safely. Maintain your equipment properly and make safety awareness in the workplace a priority.
3. Use Vertical Space
As demand for space increases, you can either choose to buy more warehouse space or investing in increasing the space you already have. One way to increase the amount of space you already have is by raising the roof.
The extra space allows for additional levels of pallet storage. Just make sure you are fully aware of any engineering limitations and/or building codes before you make adjustments.
4. Use Drop Shipping
Drop or direct shipping is a smart idea if you use your warehouse to store and ship large items. This will help reduce in-house inventory and costs.
Direct shipping allows warehouses to avoid stocking and shipping items directly from the supplier to the customer.
5. Cross Docking
Warehouses can minimize its use of storage by not storing it in between. Instead, the warehouse receives, sorts, and scans all inbound stock and then immediately loads it onto outbound vehicles.
Stock is therefore not stored unnecessarily. It can also quickly be sorted and placed back into the distribution chain.
However, while it effectively maximizes space, it may be a little tricky to handle at first.
Check Out Our Online Catalog
Having the right equipment to receive, sort, and store your items makes a huge difference in warehouse space optimization. We can help you maximize your space.
Our catalog has every organizational item necessary for a well-run warehouse from mezzanines to steel shelving. Click here to check out our online catalog.