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Michael Ostroumov

Streamlining Operations with Warehouse Storage Efficiency

Discover the importance of efficient warehouse storage and how it can maximize operational efficiency while keeping costs in check. Learn valuable tips in this article on how to streamline your operations.

Why Efficient Warehouse Storage Space Utilisation Matters

If you're a shipper of consumer packaged goods, you'll understand the need to ensure customer satisfaction through timely and accurate deliveries – all while keeping your own operating costs in check and maximising operational efficiency.
And if you work as a logistics service provider (LSP), you'll appreciate the need to connect with vetted shippers who are ready to maximise the use of your assets, while maintaining the cost effectiveness of your own warehouse operations.
The good news is that as stakeholders in the consumer goods supply chain, you can achieve these aims by taking steps to improve warehouse efficiency and optimise inventory management. To this end, efficient warehouse storage space utilisation becomes key.

We'll be looking at warehouse storage solutions that you can adopt to increase bulk storage space at your facilities and improve the efficiency of your warehouses across the board.

efficient warehouse space

Tips for Improving Warehouse Efficiency

Improving warehouse efficiency and optimising warehouse operations requires warehouse managers to take a multilateral approach. This involves aspects of warehouse layout, inventory management, warehouse storage space utilisation and operational efficiency. You can use the following recommendations as a guide:

Take a Lean Approach to Inventory Management

The basic premise of lean inventory management is “only what you need and nothing more.” From a material handling standpoint, this means that warehouse managers should reduce unnecessary movements (to increase operational efficiency), minimise waiting times (to increase customer satisfaction) and avoid excess inventory (which can hamper operational efficiency and put undue strain on warehouse storage space).

In more practical terms, lean inventory management may involve dedicating less warehouse space to safety stocks or having suppliers deliver smaller quantities of fast moving materials more frequently to reduce the actual volume of storage space required.

Warehouse management stakeholders should also standardise operating and decision making procedures. If you work with a third-party, you should set up clear communication channels with your warehouse service provider.
However, to achieve any of these aims, effective data sharing and communication between stakeholders is crucial. In practice, this means warehouse management teams getting a clean set of master data – including product and supplier portfolios – and using appropriate warehouse management system technology to achieve real or near real-time visibility of stock and transport flows.

lean inventory

Optimise Your Warehouse Storage Facility

You should maximise the space in your warehouse, exploiting the warehouse design to bring all available storage space to its maximum capacity. There are a number of ways to avoid wasted space and utilise all available space to increase the total warehouse storage capacity. You could, for example:

Rearrange Products in Individual Containers When Possible

This approach enables you to maximise your available space by storing a wide range of items according to size. Doing this allows for more ergonomic pallet racking – though requires a racking system that improves your warehouse's efficiency by making it easier to find and retrieve products.

Consider Relocating Frequently Used Items

Arranging your warehouse storage units so that frequently used items are closer to handlers and equipment reduces movement on the warehouse floor and thereby increases your warehouse's efficiency.
Depending on the warehouse design, you can implement cross-docking, pallet flow racking and other space utilisation and ergonomically efficient techniques.

Minimise Aisle Widths to Maximise Space for Storage Racks

With only a finite amount of floor space available, warehouse storage teams need to maximise space utilisation by every means obtainable. Reducing aisle widths can free up available space for storage racks and increase warehouse efficiency by reducing the carrying cost of inventory.

Take Advantage of Your Warehouse's Vertical Space

The vertical height of the building can be a major contributor to total warehouse storage capacity. Adding taller storage units and the correct equipment to retrieve products and store material can increase your volume of storage space and the cost effectiveness of your storage solutions. Pallet racking can be of great benefit in optimising your use of the cubic volume and vertical space of the warehouse.

Make Use of Untapped Space in Your Warehouse

It's possible to increase the volume of warehouse space available through some simple measures. For example, you can clean up your floor to gain valuable space that would otherwise be given over to clutter. Identifying and removing potentially unnecessary items in the warehouse can also free up unanticipated storage capacity.In whatever available space in your warehouse you have, you can run racking lengthwise to increase storage capacity.

Organise Your Workstations

With well organised workstations, an experienced team of warehouse staff can perform their tasks without the risk and nuisance associated with unnecessary clutter. You can use a Lean strategy called the 5S method to do this. It involves five steps: sort, set in order, shine, standardise and sustain. These measures are designed to keep clutter at bay, reduce errors and improve safety.

Take a Strategic Approach to Warehouse Efficiency

Having a holistic overview of warehouse operations enables warehouse managers to plan for efficiency. For example, if certain goods get shipped more than others, having these lines near your exits or aisles will provide accessible locations for workers and/or vehicles to retrieve products and equipment.

Use Appropriate Technology to Help

Automated storage and retrieval systems (ASRS) can accelerate the process of locating and retrieving items. As an alternative to manual handling, automated guided vehicles (AGVs) can transport materials around the warehouse more efficiently.

A warehouse management system (WMS) or an Enterprise Resource Planning (ERP) system with a strong WMS module can streamline warehouse operations and improve warehouse efficiency by suggesting the best routes and methods for picking or putting away items. Workers on the warehouse floor can use mobile barcode readers or radio frequency identification (RFID) devices to improve transaction accuracy and reduce picking errors.

appropriate technology

Warehouse Storage FAQS

How much do warehouses charge for storage?

The cost of warehouse storage can vary significantly based on several factors, including location, storage type, and the services provided by the warehouse. Here are some key components that influence warehouse storage fees:

Location

Warehouses situated in urban areas or near major transportation hubs generally command higher rental rates compared to those in rural settings. The accessibility of transportation routes, proximity to customers, and local demand will all affect pricing. For example, a warehouse in London may cost significantly more than one in a smaller town.

Storage Type

Different types of warehouse storage options come with varying costs. Common storage types include:

  • Traditional Storage: Standard pallet storage where goods are stacked on shelves or racks. Pricing for this option is typically charged per pallet per month.

  • Temperature-Controlled Storage: Warehouses that maintain specific temperatures to preserve goods such as food or pharmaceuticals often charge a premium for their controlled environments.

  • Dedicated Storage: Exclusive storage spaces reserved for one client may incur higher fees than shared or flexible spaces, as they provide a higher level of service and security.

Duration of Storage

Storage charges are generally calculated on the length of time items are kept in the warehouse. Short-term storage may attract different rates compared to long-term contracts. Warehouses often offer tiered pricing structures where the daily rate decreases for longer commitments, incentivizing companies to reserve space for extended periods.

Additionally, many warehouses implement minimum stay policies, requiring clients to maintain occupancy for a set period to avoid higher fees. Understanding the nuances of these timelines can help businesses better plan their inventory management and avoid unexpected costs.

How to Calculate Storage Capacity of Warehouses

Calculating the storage capacity of a warehouse is a fundamental task that ensures efficient utilization of space and maximizes operational productivity. Here are the steps involved in determining a warehouse's storage capacity:

Measure the Warehouse Dimensions

The first step is to accurately measure the warehouse's length, width, and height. These measurements will provide the total cubic volume of the space:

Length x Width x Height = Total Cubic Feet

For example, if a warehouse is 100 feet long, 50 feet wide, and 20 feet high, the total cubic feet would be 100 x 50 x 20 = 100,000 cubic feet.

How to Increase the Storage Capacity in a Warehouse?

A well-thought-out layout is foundational to maximising the efficiency of your warehouse storage. The way you arrange your space affects everything from the ease of access to inventory to the overall workflow of your operations. When attempting to increase your storage capacity, you'd be best to consider:

Aisle Width: Aisles are necessary for accessing storage, and their widths will affect the number of units you can store. Increasing your aisle width can be a gaining extra space .
Racking Systems: If using pallet racks, the design, height, and spacing will influence the density of storage. Racks can vary from single-deep to double-deep and push-back configurations.

Vertical Space Utilisation: Utilising vertical space is essential in maximising storage capacity. As a cost effective approach to a warehouse storage solution, investing in taller shelving units or racking systems can take advantage of the warehouse height. Make sure to comply with safety regulations and ensure that items stored at higher elevations are easily accessible, either through manual handling or mechanical aid.

Multi-tier Racking Systems: Implementing multi-tier racking systems allows for storing more products within the same warehouse footprint. These systems create additional levels for storage, which can significantly increase the overall capacity.

Dynamic Storage Solutions: Consider dynamic storage solutions that adapt to fluctuating inventory levels. For example, mobile shelving or automated storage and retrieval systems can help maximize space usage by adjusting to the volume and size of items being stored.

Cross-Docking: This strategy involves unloading incoming shipments directly onto outbound trucks with minimal storage time. By reducing the amount of space needed for storage, warehouses can optimize their operations and manage inventory turnover more efficiently.

Multi-Use Spaces: Designing areas within the warehouse that serve multiple purposes can also increase efficiency. For instance, setting aside a zone for temporary storage can accommodate overflow during peak demand without taking up the whole warehouse storage facility.

What is Cold Warehouse Storage?

Cold warehouse storage, often referred to as temperature-controlled storage, is specifically designed to maintain the freshness and quality of products that require a specific temperature range. This type of storage is vital for industries dealing with perishable goods, pharmaceuticals, and other temperature-sensitive items. Understanding the unique requirements of cold storage is crucial for optimizing layout and maximizing efficiency.

Temperature Zones: In cold storage facilities, it’s essential to designate specific areas for different temperature requirements. For instance, some products may need to be stored in a chilled environment (between 32°F to 50°F), while others may need freezing conditions (at or below 32°F). A well-planned layout ensures that these zones are strategically placed to prevent cross-contamination and to facilitate easy access to required temperature areas.

Stacking and Racking Systems: Choosing the right racking system is critical in cold storage, as these systems must withstand the rigors of low temperatures and potential icing. Pallet racking, for instance, can be adjusted for height to accommodate different product sizes and can facilitate airflow, which is crucial for maintaining temperature consistency. Mobile racking systems can enhance space efficiency by allowing for more flexible storage solutions.

What are the Key Functions of Cold Warehouse Storage

Temperature Maintenance: The primary function of cold storage is to keep items at optimal temperatures, which can range from just above freezing (0°C or 32°F) for some goods, to around 18°C (65°F) for other sensitive items. Regular monitoring and calibration of temperature controls ensure that products remain within their specified ranges.

Humidity Control: In addition to temperature, humidity levels are also meticulously controlled in cold warehousing. Correct humidity levels help prevent spoilage, mold growth, and other issues that can arise from too much moisture or extreme dryness.

Inventory Management: Sophisticated inventory management systems are essential in cold storage to accurately track stock levels and expiration dates. Automated systems and RFID tagging can enhance efficiency by reducing manual errors and ensuring that older products are sold first (FIFO - First In, First Out principle).

 

About FLOX

FLOX supports businesses in navigating the complexities of today's dynamic environment by providing the tools and insights necessary for success. By promoting collaboration and making better use of available capacity, FLOX enables greater flexibility and agility in supply chain operations planning. Its platform streamlines processes, enhances decision-making, and fosters a culture of transparency and accountability, ultimately transforming how organisations manage their supply chains.