Warehousing is a very profitable business, but only if you know how to utilise the available space to store more inventory. The more the inventory, the higher the profits. To start, learn the different methods of pallet storage for warehouses. That way, you will know how to store each type of inventory correctly.
Then, consider these tips to utilise the storage capacity of your warehouse.
Make Use of Vertical Space
You will be surprised at how much vertical space goes unused if you look up. Check your inventory and pick items that can be best suited up there as well as items that are not in demand. Buy warehouse pallet racking storage systems so you can maximise the space even further.
Consider Using a Warehouse Management System
It can be overwhelming to keep track of inventory in your warehouse manually. A lot of errors are bound to happen. It may even be impossible to know your warehouse’s maximum storage capacity, let alone maximise it. This is why it’s important to have tools such as a warehouse management system to help you with all this.
A warehouse management system (WMS) will provide you with real-time data of your warehouse storage capacity, which can guide you on when to free up some more space. A WMS is also helpful in organising your inventory as it assigns a location for each product based on its volume and unit load dimension.
Consolidate All Your Locations
If you have any other storage locations for similar items, consider redesigning the system to store like items in one location. It will save you some storage space. On top of that, it will make operations management easier.
Minimise Aisle Widths
Check whether your aisle is too wide and minimise it to fit the handling equipment comfortably. Take care not to minimise it too much as it will affect the operating efficiency.
Manage the inventory in your warehouse so that it is not overstocked at any given time, especially for slow-moving products. This also applies to stored supplies as well as packing materials.
For packing materials, consider using less bulky containers and more of storage bags. They use up less storage space.
Install a Mezzanine Floor
Of course, this is if your building permits mezzanine floor installation and if you have the space to install one. It can be costly to install, but it’s a rather permanent solution to storage space issues. You will have lots of space to store more inventory. This is cheaper than acquiring a new warehouse location or building extensions to the one you already have.
Dropship Some Products
Drop shipping is not just for online stores; your warehouse can also apply this concept by directly shipping large items to the clients. You will reduce both storage costs and in-house storage space.
Extending your warehouse should be your very last option. Instead, maximise the available space as much as possible. Only then can you reap big from your warehouse.