One of the most critical issues that warehouse managers struggle with is optimizing warehouse storage. When not done properly, it can have costly consequences such as blocked aisles, lost stocks, and low productivity. And while moving to a larger facility might be a quick solution, it isn’t a practical choice for most.
In this article, Jracking will teach you about the best practices to help you optimize the storage process. With these helpful tips, you’ll be able to utilize the maximum capacity of the facility and streamline your warehouse operation.
Storage Process Objective
The warehouse storage process is the movement of goods into their most appropriate storage space. However, this is easier said than done. An efficient storage process in warehouses is critical because it ensures that you’re making full use of all the available space in your warehouse. Efficiency in warehouse storage also keeps the stocks organized without compromising productivity.
How to Optimize the Storage Process:
In order to optimize your warehouse storage process, it’s important to analyze how much storage space is utilized within your warehouse. To help you with that, here are four simple steps for calculating your warehouse utilization.
Step 1 – Get the Total Warehouse Storage Area
Measure the total square footage of your warehouse and subtract the spaces that aren’t used for storage purposes (e.g. restrooms, offices, lunchrooms). Then, multiply the remaining square footage by the warehouse’s clear height – the distance from the finished floor of the warehouse to any overhead object such as lights, joists, or trusses.
Step 2 – Calculate the Maximum Storage Capacity Based on Current Setup
To get your maximum storage capacity, multiply the length and width of your rack’s external dimensions, which is also called the storage area footprint. If you’re using shelves, calculate the internal volume of your shelves. Then multiply that figure by the height of the highest load in that area – the item sitting on the top beam of the pallet rack.
Take note that the height of the highest load can possibly be different across the racks. In this case, simply calculate them separately then add all the results together.
Step 3 – Determine the Potential Storage Area Within the Warehouse
Divide your maximum storage capacity (step 2) by the total warehouse storage area (step 1) and multiply it by 100. The ideal result is around 22%–27%, as this range indicates that there is enough room for warehouse workers to move around efficiently without wasted space.
If your result is below 22%, it can be an indication that you have a lot of wasted space. On the other hand, a result higher than 27% means that the warehouse personnel don’t have enough room to work in, which can lead to lower labor productivity.
