Ways to Improve Warehouse Space Utilization

Warehouse optimization is key to the efficient utilization of warehouses of all sizes. Warehouse optimization includes an in-depth knowledge of how to save time, space, and resources. Your business may have outgrown your warehouse but moving to a new space is a costly and time-consuming process. Here we have mentioned some of the best ways by which you can utilize warehouse space effectively:

• The Initial Step
Explore your warehouse area in terms of capacity and utilization. Understand the flow and utilization of the current layout, rack arrangement, slotting, inventory management, and packing and shipping.

• Cover all Vertical Space
Make sure you’re using all the vertical space available in your warehouse. Inspect storage area to take advantage of your clear span height.

• Integrate Locations
If you have multiple locations for storing the same types of goods, consider combining them to maximize the space utilization of the warehouse.

• Pick right-size Slots
Match the size and sales of the goods to the right sized pick slot to maximize the space utilization of the picking slot area.

• Use Off-Site Location for Overstock Items
If you store a large quantity of inventory for a few items, consider some type of offsite location for the excess items, thus freeing up space for supporting the current storage operation.

• Cross Docking
Review cross docking large releases of back orders or single-line orders to reduce the amount of inventory requiring storage locations.

[Related Blog: Importance of Demand Forecasting in Supply Chain]

• Maximize Utilization of Your Space
Make sure you study your warehouse area to determine how it can best be utilized from a space standpoint. Try to match vertical space requirements with the space characteristics.

• Review Depth of Storage
Review effective use of the depth of storage; for example, consider double-depth racking.

• Use Single Door
If you have separate docks for shipping and receiving, consider combining them to save space.

To know more about warehouse space utilization and optimizing your entire supply chain, go to Tenaxx Logistics and give us a call to find out which solution is right for you.