Size matters in space utilisation

Owning or renting a warehouse as part of a business can swallow up a big part of the business’s operating budget, cutting into profit margins and affecting efficiency. Maximising space utilisation, however, can help with stock inventory, picking and placement of goods, automation and overall efficient use of space. With careful planning, warehouse space can soon be streamlined into a more profitable and useful commodity.

Bin locations should be suitable for the goods to be stored; for example, using a four-foot by four-foot bin location to store a two-foot by two-foot item is wasting valuable space. Keep same size items together, as this will help with inventories and stock control, picking and packing, and there is less chance of a smaller item being hidden behind a larger one.

Look at reducing the size of warehouse being used, remembering that a smaller warehouse can help companies think more creatively when utilising space, cutting down on loading and unloading times, and improving overall efficiency.

Keep warehouse packing equipment, such as mobile tables and packing benches, in a designated location, so mobility around the warehouse is not hindered. Successful space utilisation may lead to being left with extra warehouse space, which could be used for additional manufacturing, moving another company facility into the space or even generating revenue by renting to a third party.

The operating costs of warehouses can be expensive, but by making the most of every aspect of space utilisation, this can be kept to a minimum and effective use of the warehouse can be realised.

Posted by Derek
4th October 2017
Retail & Warehousing

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