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Jun 01, 2023

Warehouse Storage Expansion: Creating Supply Resilience with Cost

With storage, logistics and distribution facilities strained to the limit today,

With storage, logistics and distribution facilities strained to the limit today, managers are looking to cost effectively optimize operations without leasing more space or expanding the buildings with new construction.

Since the pandemic showed manufacturers, distributors and retailers how supply chain disruptions can cause dramatic shortages of products and materials, many are seeking to increase inventory to avoid similar problems in the future. However, warehouse space is in short supply, particularly around coastal seaports and distribution centers, with prices rising, as leased properties are quickly snapped up.

With storage, logistics and distribution facilities strained to the limit today, managers are now looking to cost effectively optimize operations without leasing more space or expanding the building with new construction when they have essentially run out of space.

Fortunately, versatile options are available in the industry that can help to make the most of facility vertical space and storage density. The cumulative effect of taking advantage of some, or all, of these offerings can substantially improve supply shock resilience in preparation for the next pandemic surge, natural disaster, war, political dispute or other black swan event.

As floor space has become increasingly scarce, going up – not out – is an increasingly popular strategy. Companies are evolving from thinking about a storage in square foot space, in favor of cubic space.

In this regard, putting unused space to use above the warehouse dock door may be the answer. As a solution to empty pallet storage problems, the Over-Dock Pallet Storage Rack can help warehouse/logistics managers and shipping/receiving supervisors put more product in their warehouse without a bigger building while improving operational efficiency.

Ultimately, however, to get significantly more effective use out of an existing warehouse or distribution center, increasing the density of storage may be required.

Warehouse managers are increasingly turning to advanced methods for increasing storage density.

A pushback rack system offers up to 90% more product storage than selective rack systems and up to 400% more selectivity than drive-in racks.

A warehouse pallet flow storage system can be the answer, for maximum pallet rack use in a minimum footprint, along with inventory management capability. In a pallet flow storage system:

Realistically, not every logistics firm, manufacturer, distributor or retailer has the resources to sign deals for new space before ground is broken. So, when reimagining the warehouse space becomes the priority, implementing one or several of the options discussed can free up significant storage space in an existing facility. The net effect of reclaiming this underutilized space can not only improve operational efficiency today, but also help to accommodate the inevitable supply chain shocks of the future, whatever the cause.