The topic this week is warehouse capacity. Why is this important? Many people are facing a common issue – running out of space.
Let me share a few tips that can help you make the most of your existing warehouse capacity, without needing to build or relocate to a new facility.
These simple suggestions can make a significant difference.
Check out the video below!
Current Challenges with Warehouse Capacity
One of the major challenges many companies face today is warehouse capacity. This is a trend we’ve seen at Logistics Bureau over the past few years. Initially, it was triggered by the pandemic, but it has continued to be an issue as businesses expand, merge, and acquire new operations. Many are trying to build larger warehouses or retrofit existing ones to optimize capacity. But before you consider moving to a bigger space, there are several strategies you can try to optimize your current warehouse.
A common rule of thumb is that warehouses operate efficiently at about 85% of their capacity. This allows room for moving products and reshuffling stock without overcrowding. If your warehouse capacity exceeds this threshold, it might feel like navigating a congested parking lot, which can lead to inefficiencies.
Managing Inventory for Optimal Space
One of the key causes of warehouse capacity issues is poor inventory management. In many cases, companies overstock due to inappropriate purchasing policies, like buying large quantities at a lower unit price but ending up with too much stock. Additionally, poor demand forecasting or an influx of promotional activities can contribute to this problem. Proper inventory management plays a vital role in preventing your warehouse from becoming overcrowded.
High-Density Storage for Better Utilization
Maximizing your warehouse capacity often requires rethinking your storage methods. Implementing high-density storage solutions can significantly improve space utilization. For example, replacing traditional forklifts with articulated models that work in narrower aisles can recover substantial storage space. One client was able to increase their warehouse capacity by 30% just by making this switch.
Another great option is to consider automated vertical lift machines or carousel systems. These high-density storage solutions bring the products to the picker, optimizing both space and efficiency. For industries dealing with small parts, such as automotive, these systems can offer a huge boost in warehouse capacity without the need to move to a new location.
Related articles on this topic have appeared throughout our website, check them out:
- Warehouse Product Slotting: The Ultimate Guide
- KPIs for Your Warehouse: How to Choose and Use Them
- The 7 Principles of Warehouse and Distribution Centre Design
- Warehouse Design – Rules of Thumb… And a Checklist
- Planning a Warehouse Network and Design: Key Factors to Consider
Editor’s Note: The content of this post was originally published on Logistics Bureau’s website dated October 02, 2024, under the title “Warehouse Capacity – How to Increase It and Avoid Moving“.
