Many companies think a new warehouse is the answer to their problems. But is it really necessary?
In some cases, you can get more out of your current warehouse by optimizing its layout and operations. This approach can save you time and money compared to building or moving.
Learn more about how to enhance your existing space by watching the video below.
Are you certain that expanding to a larger warehouse is the best move for your business? Many companies approach us at Logistics Bureau with space issues and assume that a bigger warehouse is necessary. In my 26 years of experience, I’ve seldom seen a business downsize to a smaller warehouse. The typical trend is to move to a larger space due to growth. However, before making this decision, let’s explore whether this is truly required.
Is Inventory Causing the Space Problem?
Excess inventory is a common culprit for space shortages. During the pandemic, many businesses increased their stock to navigate supply chain disruptions. Even as conditions have stabilized, some companies still hold more inventory than needed. It’s crucial to review your inventory levels, particularly slow-moving items. Often, businesses carry too much of these less critical items while understocking high-demand products. By thoroughly analyzing your inventory and balancing it more effectively, you might free up significant space without needing a new warehouse.
Optimizing Warehouse Layout
Sometimes, the issue is not the amount of space but its utilization. For example, we assisted a client in increasing their warehouse capacity by 30% by narrowing aisles and implementing more efficient forklifts. These changes allowed them to maximize their existing space without relocating. Consider whether adjustments such as altering your warehouse layout, adding mezzanines, or reconfiguring storage could enhance your current facility’s efficiency.
Improving Picking Processes
The method used for picking products can also impact warehouse space. Revising your picking processes or introducing new technologies might lead to better space utilization and increased efficiency. By optimizing these processes, you may find that your existing warehouse can accommodate your needs for a longer period.
Before deciding to move, explore all available options. Often, cost-effective and straightforward solutions can help you optimize your current space and postpone the need for expansion. This approach can save you time, money, and minimize stress.
For detailed guidance, check out the video above.
Related articles on this topic have appeared throughout our website, check them out:
- Are You Sure You’re Out of Warehouse Space?
- 10 Proven Principles for Best Warehouse Design and Operation
- Improve your Warehouse Productivity Through Product Slotting
- Warehouse Product Slotting: The Ultimate Guide
- A Recommended Approach to Warehouse Layout and Operational Design
Editor’s Note: The content of this post was originally published on Logistics Bureau’s website dated August 16, 2023, under the title “Do You Really Need a New Warehouse?“.
