If a warehouse is filled to 85% capacity or more, it’s time to research ways to increase storage capacity in anticipation of business growth before it is 100% full.
There are several ways to increase the capacity of a warehouse, which we’ll explore in more detail.
Increase the size of the building
The first way to increase storage capacity is to make the warehouse larger, by raising the roof or extending the building outwards.
These solutions are expensive, and not practical if site space is limited.
Another obvious solution is to move to a larger warehouse or build a new one. However, before you consider the expense of moving to another warehouse, there are other options to explore.
Utilise vertical space
Using spare vertical space is one of the easiest and least expensive ways to extend capacity.
Your warehouse rack supplier may be able to simply extend the vertical height of pallet racks or storage shelves. You may need new forklift trucks or modify existing ones so that they reach the extra height.
Change storage systems
Higher density storage systems have more capacity. For example, double-deep racking systems store one pallet behind another one, making them suitable for high stock items.
However, this system restricts access to the first pallet loaded, which is at the rear of the last loaded.
Install a mezzanine
A mezzanine floor above floor level is an effective way to extend the warehouse. There needs to be sufficient height, and the floor must be able to hold the weight of the mezzanine level. There also has to be room for supporting columns.
A mezzanine floor is not usually the best place for storing inventory, as it is difficult to move heavy items downstairs. A typical use for the mezzanine is to relocate the admin offices, break rooms and other non-inventory areas from the ground floor to the mezzanine level. This frees up space to store more inventory at ground level.
Reduce aisle width
If the aisle width between storage units is 10 to 12 feet, it can be reduced by 15% to 20% without reducing the efficiency of the warehouse pickers if the trolleys forklifts and other handling equipment are not too wide. By reducing several aisles, more storage space will be available.
Use trailers for temporary storage
Sometimes, extra capacity is required for a temporary period only, such as during the Christmas season. Temporary storage in a trailer, shipping container or portacabin outside the warehouse is a solution that does not require the construction of a warehouse expansion.
Warehouse management systems
Invest in a good warehouse management system that organises stock. These systems do not add extra capacity, but they do utilise all the available space more efficiently without wasting space.
A warehouse management system can organise stock levels to prevent overstocking and issue warnings on low stock levels. The ideal system reduces the amount of goods in the warehouse whilst avoiding out-of-stock items.
A good warehouse management system can avoid the need for extra capacity, unless business growth makes it necessary.
Identify unused space
Careful examination of the warehouse may reveal space that is not utilised. For instance, there may be room for shelves above conveyor belts.
There could be space in the loading area. These spaces may not be large enough for a full pallet rack, but the odd slow-moving lighter item may fit.
Use stackable bins and containers
For small items, bins and containers stacked on top of each other are ideal for organising them efficiently so that no space is wasted.
Use a third party warehouse
One way to solve a lack of storage issue is to rent space in a warehouse owned by another company that can also fulfil orders for you.
In some cases, the space rented grows or shrinks according to inventory levels. A large fulfilment centre should have enough capacity for present needs, and enough spare for future growth.
Using a third party fulfilment centre is suitable for some retail operations, but not all, depending on whether it is financially and logistically viable.
Ask your warehouse equipment supplier
A UK-based manufacturer and supplier of warehouse storage equipment, such as us at Steely Products, are experts at organising warehouses. Ask for help on finding extra storage capacity and what equipment is required to utilise space more efficiently.
Conclusion
If a warehouse perceives that it needs extra capacity, there is no one perfect solution. The most suitable approach is usually a combination of two or more of the above strategies.
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