Best Practices for Optimizing Warehouse Storage Space Effectively

Maximize your warehouse space utilization without expanding the space.

Acquiring a larger storage space considering future requirements may be an unwanted expense added to your bill. Instead, you must evaluate the storage methods and practices to ensure maximum storage in the available area. 

When it comes to maximum storage of warehouse space, an occupancy of 80-90% of the area would mean less room for movement and other activities. The key is to utilize the warehouse to the ideal level, so it does not hamper its efficiency.

Best Practices for maximizing warehouse space utilization

Sort Items by Size

Sometimes unpackaged items are placed in containers larger than their size. This can take up a lot of space. Ensure the availability of containers of varying sizes to pack the items according to their size. The container space is better utilized, and it is possible to pack more products into the available space.
 
Make use of vertical space

For convenience, employees often tend to use floor space first. But instead of making things more accessible, it clutters the warehouse and results in poor space utilization. Employee productivity is affected, as the products' location is unclear, causing order fulfillment delays. 

Pallet racks can make use of the available vertical space of the warehouse. It would automatically increase floor space. Cantilever racking is another option for vertical storage. Care should be taken to ensure adequate aisle space for moving equipment for storing and retrieving goods. 
 
 
Random/Chaotic Storage 

Random or chaotic storage is a shelving or racking system with no permanent areas or sections for any item. Every shelf or rack space in this storage system is assigned a unique barcode, as does every incoming item. The products are stored in locations as per the bar code. This storage method gives better visibility of the available warehouse space and easy retrieval of the items. 

The most significant advantage of the chaotic storage system is that it enables the refilling of freed-up space immediately. Besides, it increases employee productivity as they can complete their work faster. 

Storing Like-Size Items Together

In every inventory, there would be many different-sized products. Arranging items based on their size can help optimize space utilization. It is easier to retrieve small-sized items with this kind of arrangement.

Optimize Aisle Width 

The aisle needs to be wide enough to accommodate the forklifts and the movement of other machinery, if any. Proper design allows the extra space to be used optimally for storage. 
 
Install Mezzanine Floor

Considering a mezzanine floor is a good idea if your warehouse has a high ceiling. The installation may be expensive and permanent, but it maximizes the warehouse's storage capacity. 

Use Compact Industrial Doors

Some warehouses have doors that open inwards. Hence, it takes up a lot of space. For space utilization, use compact sectional doors consisting of horizontal panels. When opened, the panels fold in a small package above the door opening. 
 
Implement Cross-Docking

Cross Docking is highly suitable for fast-moving products and perishable items. The inbound stocks are received, sorted, and scanned immediately to reload the items to outbound trucks for shipment. 

Thus, there is no unnecessary storing of goods in the warehouse, leaving more space for storing goods that cannot be cross-docked. 
 
Reduce Obsolete and Excess Inventory

Obsolete inventory refers to those products that are no longer sellable or usable. Excess inventory includes goods that have no market value or demand. These are otherwise known as dead and leftover inventory occupying valuable storage space. 
So, find ways to reduce excess and obsolete inventory and increase storage space. 
 
Warehouses are an inevitable part of the supply chain system and require a considerable capital investment. Smart choices like on-demand warehousing allow you to expand your storage area or cut down on it as needed. 

The above best practices, along with a sound WMS system, can help with the proper storage of items to ensure effective use of the space is used effectively.

Opting for flexible storage, where you pay only for what you use, reduces your warehouse space expenses considerably. Cargoz provides an on-demand storage service with a wide range of storage options at different locations in the UAE. 

We also offer warehouse management as a service so you can get the best out of your warehouse space. 

If you are looking for flexible warehouse space in and around UAE, get in touch with us.

In every inventory, there would be many different-sized products. Arranging items based on their size can help optimize space utilization. It is easier to retrieve small-sized items with this kind of arrangement.

Optimize Aisle Width 

The aisle needs to be wide enough to accommodate the forklifts and the movement of other machinery, if any. Proper design allows the extra space to be used optimally for storage. 
 
Install Mezzanine Floor

Considering a mezzanine floor is a good idea if your warehouse has a high ceiling. The installation may be expensive and permanent, but it maximizes the warehouse's storage capacity. 

Use Compact Industrial Doors

Some warehouses have doors that open inwards. Hence, it takes up a lot of space. For space utilization, use compact sectional doors consisting of horizontal panels. When opened, the panels fold in a small package above the door opening. 
 
Implement Cross-Docking

Cross Docking is highly suitable for fast-moving products and perishable items. The inbound stocks are received, sorted, and scanned immediately to reload the items to outbound trucks for shipment. 

Thus, there is no unnecessary storing of goods in the warehouse, leaving more space for storing goods that cannot be cross-docked. 
 
Reduce Obsolete and Excess Inventory

Obsolete inventory refers to those products that are no longer sellable or usable. Excess inventory includes goods that have no market value or demand. These are otherwise known as dead and leftover inventory occupying valuable storage space. 
So, find ways to reduce excess and obsolete inventory and increase storage space. 
 
Warehouses are an inevitable part of the supply chain system and require a considerable capital investment. Smart choices like on-demand warehousing allow you to expand your storage area or cut down on it as needed. 

The above best practices, along with a sound WMS system, can help with the proper storage of items to ensure effective use of the space is used effectively.

Opting for flexible storage, where you pay only for what you use, reduces your warehouse space expenses considerably. 

We also offer warehouse management as a service so you can get the best out of your warehouse space. If you are looking for flexible warehouse solutions in and around UAE, get in touch with us.


Vidhu From Cargoz April 3, 2023
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