Almost all warehouses comes to a stage when there is not much room for storage anymore and moving to a new warehouse or buying additional storage might cost you a lot. You can optimize your warehouse using these tips.
Tips to optimize warehouse:
- Storage density: if your warehouse reaches 85% then it is effectively full and there is no space for new arrivals. You can see this if pallets are located in the aisles or blocks the shipping and receiving areas. You must do something to change this situation.
- Reduce SKU quantities: make sure that you do not have too many pallets racking with the same SKU. Do not overbuy and clog your inventory. Buy in stages to get some additional free space.
- Obsolete inventory: if inventory is not used in a reasonable period of time then it causes a big problem. Make a velocity report to see the consumption of an SKU over a period of time. Do not have a lot of dead inventory.
- Re-slot the storage locations: in many cases order picking happens from the storage location. It can cause honeycombing and there might be products occupying less than 10% of the available space. By making smaller storage locations you can move or re-slot these products and free up space.
- Seasonal variations: Some businesses need a high inventory level for small periods of the year. You can contract outside storage system for these seasonal inventory.
- Utilize your cube: take advantage of all the vertical space that you have in your warehouse. You can stack your items upto 18inches height below the fire sprinkler heads. If you have an early suppression fast response for fire then you can stack upto 36 inches.
- Create more space: utilize the receiving and shipping area that is not properly utilized. Add some storage locations above your dock doors that will not interfere with shipping or receiving. You can also consider creating tunnel aisles by adding some storage locations above the cross aisles.
These are some simple ways to optimize your existing racking rather than purchasing a new one.