Fulfillment centers are being put to the test like never before. The eCommerce boom, coupled with global supply chain issues, has put the strain on fulfillment centers to handle high consumer demand and keep order fulfillment operations running smoothly. A major obstacle getting in the way of that goal is a lack of available storage space.
Warehouse space is expensive, so building a new one is often out of the question. Plus, rents have continued to rise, and vacancy rates are low. Research indicates that vacancy rates across the U.S. industrial sector decreased in the first quarter of 2022, reaching an all-time low rate of 4.1 percent.
If building or renting additional warehouse space simply isn't in the cards for your business, there's a third option that you should consider— optimizing your existing warehouse space. If you're wondering how to increase storage capacity in your existing facility, check out these four ways you can do so without spending a fortune.
Start with the Eye Test
We know it might seem like a no-brainer, but many facility managers are so busy with their day-to-day operations that they don’t take the time to look up — literally.
The typical fulfillment center deals with fairly consistent SKUs, meaning they know how many products they regularly need to be stocked and where those products should be stored. But what about when order volume suddenly increases or more product lines are added? It’s usually not until a storage problem presents itself that facility managers start to look for more space.
Regardless of whether or not storage capacity is an issue for your business, you should take time to learn what wasted space looks like. If you see a good amount of empty space or if you're storing air, you have an opportunity to be storing more products in your existing space. Unused warehouse space is one of the most common culprits of inefficient storage and can be remedied with some relatively simple and cost-effective changes.
Store Items According to Throughput
Time is money. This adage is especially true in the world of order fulfillment, where, for example, shaving just 10 seconds off the time it takes a team member to locate, pick, and deliver medium-throughput SKUs can reduce variable costs by 20% and allow for 100 more picks per day. An effective way to streamline order fulfillment operations and bring valuable time and money back to your warehouse is by organizing your SKUs based on their throughput.
Low-throughput SKUs may be seasonal or just ordered infrequently, so they don’t need to take up storage space in a high-profile position. Still, they need to be easily accessible when they are ordered. Keep these products in static-shelving, tilted-pick shelving, or a dynamic high-density shelving solution like SpeedCell so they aren't taking up valuable storage space but can still be easily picked when ordered.
Medium-throughput SKUs likely represent the bulk of your operation‘s picks, so these need to be easy for your workers to locate, access, and pick. A carton flow solution, like SpanTrack, is ideal for these frequently picked products.
High-throughput SKUs likely arrive and depart your facility rather quickly, so it doesn’t make sense to store them away only to retrieve them a few days or even mere hours later. These products are best left on a pallet or loaded into a pallet flow system, like Pallet Track, not just for optimal efficiency but also to keep your shelves open for other products.
Organizing your SKUs based on their throughput helps optimize the cubic space in your warehouse, which enables you to increase storage capacity while minimizing the time spent searching for misplaced SKUs. Having more room to store your SKUs and ensuring pick paths are as efficient as possible, no matter the product equates to greater profits for your business.
Maximize Efficiency with 5S
SKUs are easier to locate when there’s a place for everything, and everything is in its place. This makes it easier and faster for workers to locate and pick SKUs to efficiently fulfill orders. 5S is a lean thinking method that provides best practices for creating a more productive work environment. Although this concept is more commonly associated with lean manufacturing, fulfillment operations can take many cues from 5S - a system designed to reduce waste within your facility and ultimately bolster your bottom-line results.
5S is all about keeping your warehouse organized and tidy for peak efficiency. Within the process, there are five pillars you should look to follow:
- Sort: Get rid of your nonessential items, and use only what’s needed. Examine your existing storage solutions and identify any pallet racking, shelving, or other pieces of equipment that are underutilized. Ideally, your warehouse should use the right products in the right spaces and quantities.
- Set in Order: As discussed above, arrange your items for easy access and use. Find ways to reduce excess motion and search by enabling team members to quickly find what they need when they need it.
- Shine: Make an effort to keep things clean. Keeping storage solutions and picking equipment in your order fulfillment areas spotless minimizes injuries and wasted time.
- Standardize: Put processes and standards in place to ensure workers know what’s expected. Organizing and restructuring shouldn’t be a one-off occurrence — it should be the norm for your warehousing and order fulfillment business.
- Sustain: Once you’ve managed to keep your warehouse tidy, stick with it. Make a habit of properly maintaining correct procedures to avoid backsliding to the way things were.
Implementing 5S best practices in your fulfillment operations can go a long way toward decluttering your warehouse and avoiding impediments to order fulfillment. When your space is optimized, and everything is where it should be, you suddenly have additional SKU storage space on your hands. Filling that void with smart, space-saving storage solutions further improves your ability to store more SKUs in less space.
Implement Dynamic Storage Solutions
If you’re wondering how to increase storage capacity in your warehouse, a dynamic storage solution may be your best bet. Ultimately, keeping operations flowing smoothly requires you to take a proactive approach to storage capacity. If you wait until order volume increases or space runs out altogether, it’s too late.
With the right dynamic storage solution, you can upgrade your existing setup and implement space-saving products without completely overhauling what’s already in place. Building on your existing storage solutions is an effective way to increase your warehouse's storage capacity without a lot of leg work.
Whether you’re looking to better organize your low-throughout, medium-throughput, or high-throughput SKUs, you’ll have options regarding the dynamic storage solution you should consider.
Learn how to save space in your facility. Download The Guide To Optimizing Warehouse Space Utilization!
Unlock the Full Potential of Your Warehouse with UNEX Storage Solutions
As fulfillment centers face increasing pressures from the eCommerce boom and global supply chain challenges, the need for efficient storage solutions has never been greater. With warehouse space at a premium and vacancy rates at an all-time low, optimizing existing space is the most viable option for many businesses. This is where UNEX warehouse storage solutions come into play.
SpanTrack Carton Flow
UNEX SpanTrack carton flow systems are designed to increase storage density while enhancing pick efficiency. These systems integrate seamlessly into your existing pallet racks, creating a dynamic storage environment that supports first-in, first-out (FIFO) inventory management. With SpanTrack, you can ensure that products are always accessible and ready for picking without disrupting ongoing operations. This solution is ideal for medium-throughput SKUs that require frequent access and consistent rotation.
SpeedCell
If you're looking to dramatically increase your storage capacity, SpeedCell high-density storage systems are the answer. SpeedCell compresses up to 200 feet of traditional shelving into just 40 feet of organized, accessible space. This system is perfect for low-throughput SKUs or small parts that don’t need to occupy prime warehouse real estate but still require quick access. By reducing travel time and improving pick accuracy, SpeedCell helps you maximize your warehouse’s cubic space while boosting operational efficiency.
Pallet Track
For facilities dealing with high-throughput SKUs that need to move quickly and efficiently, UNEX Pallet Track systems offer an ideal solution. Pallet Track is designed to keep your products flowing smoothly from storage to shipping by utilizing gravity to move pallets through the system. This not only increases the speed of your operations but also frees up valuable floor space, allowing you to store more SKUs within the same footprint. Pallet Track is particularly beneficial for fast-moving products that require minimal handling and quick turnover.
Take the Next Step Toward Optimizing Your Warehouse
At UNEX, we pride ourselves on providing our clients with tailormade dynamic storage solutions that consider your particular warehousing and order fulfillment needs. SKU storage looks different for every business, so we work closely with our clients to help them custom-configure the ideal storage solutions.
Check out our custom configurators to create the exact UNEX solution you need to optimize workflows and maximize warehouse storage. Using our 3D sandbox environment, you can virtually create a space-saving storage solution with your particular needs in mind. You can download your designs and work with the UNEX team to bring your ideas to life.
If you have any questions or want to learn more about increasing storage capacity in your warehouse, don’t hesitate to contact us today.
