Logical storage solutions blog

Maximising Profitability Through Efficient Warehouse Storage

When it comes to warehouse storage there are so many options available, and choosing the right combination can help improve both operational efficiency and profitability. With the skyrocketing costs of warehouse space, the more you can store in a small area the better. In order to overcome space utilisation issues, we have put together this guide on improving your warehouse storage.

Implications of Utilising Warehouse Space

Space utilisation refers to how effectively the available storage space is used. With every square foot of the warehouse equating to a financial overhead, you need to ensure a positive return on your investment is being generated. Mismanagement of space can also lead to bigger issues: disorganised workspaces, longer retrieval times, increased labour costs and an increased risk of accidents.

An organised warehouse can dramatically speed up order fulfilment, ultimately leading to higher customer satisfaction. Optimising warehouse space isn’t just a logistical concern, it is a strategic tool to help you get ahead of the competition.

Bottlenecks in Warehouse Spaces

There are several challenges when it comes to maximising warehouse storage, let’s have a look at these in more detail:

1. Overstocking

Lots of warehouses have thousands of products sitting there, idle and not being sold. As well as this costing businesses money, having stock sat around absorbs space that could be better used.

2. Inadequate warehouse layout

When creating a warehouse space for your business, it is essential to think about long-term plans such as scalability. A warehouse design that is rigid and doesn’t have the ability to adapt can not only hinder business growth, but also make it hard to adjust to changes in stock needs.

3. Physical limitations

There are also physical limitations of warehouses – building height, column placement and door size, which can all affect how the space is utilised. Taking these into account when reviewing your warehouse storage will allow you to use the space optimally.

Maximising Warehouse Space Utilisation

To get the most out of your warehouse space, here are a few tips:

1. Organise products based on type

The organisation of products within your warehouse is key. An inconsistent, messy layout makes it harder for employees to find products and can therefore delay operations.

2. Neatly & logically arrange

There should be some logic behind how your products are stored within the warehouse too. For example, sorting products based on their manufacturer or product name. They should also be stored neatly in order to create a safer environment for employees, helping to make their jobs easier.

3. Create a plan for unused space

If you have storage racks that are underfilled, don’t put other products straight into that space, make a note of this for a later date. This means that by making a note of your used and unused warehouse space, you can plan around the arrival of new products more easily.

4. Eliminate excess inventory

Not all of the products within your warehouse will be top sellers and there may be some times when you have too much stock of a non-selling product in your warehouse, taking up valuable space. Sometimes you have to simply eliminate excess inventory to make more efficient use of your warehouse storage space.

5. Minimise aisle widths

If you can, move your storage racks closer together to make your aisles as narrow as possible. This will increase the amount of storage space in your warehouse, but when minimising aisle widths make sure you can still fit forklifts through.

6. Utilise vertical space

If you are running out of space on the ground, consider expanding upwards if possible. By adding taller storage racks with more levels, you can easily increase your warehouse storage capacity, allowing for the storage of more products.

7. Stick to one method of organisation

There are two main methods of organising your warehouse’s contents: random & fixed organisation. Random is where you put products wherever they will fit, so you can efficiently use all of your available storage space. However, this can be a nightmare when it comes to locating products. Fixed organisation is consistently applied to your entire warehouse inventory, and while it can create some wasted space it makes it much easier to retrieve products.

We hope this has helped to give you some ideas on making your warehouse storage more profitable. For more advice on making improvements to your warehouse, get in touch with Logical Storage Solutions. Our expert team are on hand to find a solution to any storage problem, so call us on 0845 689 1300, or email [email protected].

Offering a consultative approach and nationwide service for all single and multi-site operations, we are your one-stop provider of all storage, workspace and maintenance solutions.