When warehouse managers report they’re running out of space, there are several practical solutions to explore before making the costly decision to relocate or lease additional facilities. The key is understanding the difference between location fullness and actual cubic capacity utilization.
One of the most cost-effective approaches is optimizing existing racking systems. Many warehouses have standard pallet positions that don’t match their actual storage needs. By adjusting beam heights to accommodate consistently low or high pallets, facilities can often add entire extra levels of storage. This simple modification can significantly increase capacity without requiring expensive infrastructure changes.
Inventory management presents another crucial opportunity for space optimization. Addressing slow-moving and obsolete inventory (SLOB) can free up valuable storage locations. While best practice typically suggests one SKU per location, slow-moving items can be co-mingled and stored in higher rack positions, creating more space for fast-moving products below.
For businesses dealing with seasonal peaks, when inventory might surge 10-20%, the solution isn’t necessarily building for maximum capacity. Instead, consider temporary surge storage solutions during peak periods. However, using shipping containers for overflow storage should be approached cautiously, as detention charges can become prohibitive unless you own the containers or have negotiated favorable terms.
High-density storage systems offer another solution, potentially reducing floor space requirements by up to 80%. Options like AutoStore, mini-load systems, carousels, and vertical lift machines can dramatically increase storage density. While these systems require higher capital investment, they often deliver additional benefits through improved productivity via goods-to-person picking systems.
A simpler but equally effective approach is optimizing aisle widths. One company achieved a 30% increase in storage capacity by narrowing their aisles and switching to articulated forklifts, which can operate in tighter spaces than standard reach trucks. This modification, combined with adding more vertical levels, allowed them to avoid the expense of a second warehouse.
The key to warehouse capacity management is examining all options before making major facility changes. Often, a combination of these solutions can extend a warehouse’s useful life while maintaining operational efficiency.
