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Currently, warehouse space is at its best, and the costs of underusing your warehouse can easily multiply. The cost of labor, land, and items stored in the warehouse can add up to a substantial amount of money. And apart from being crucial for customer satisfaction, an efficient warehouse is vital in ensuring quick and accurate shipments. Companies can therefore improve their efficiency and reduce their cost of warehouse by maximizing space utilization.
The following are some tips for utilizing your warehouse space:
Organize for Safety
Safety must be a priority when it comes to warehouses. An organized workspace increases overall productivity since workers won’t have to search for items and tools. Make sure to have designated areas for different duties, starting from the receiving and unloading area, down to the warehouse packing station. One mistake in organizing a warehouse can lead to the loss of valuable property and priceless lives. Ensure that your warehouse is clutter-free to reduce the risks.
Make sure that everything is in its allocated place to avoid any mistakes. Even though warehouse racking is the major infrastructure in a warehouse that expedites a smooth operation and optimum warehouse organization, the overall efficiency depends on various factors. These factors include product demand, aisle width, and the layout of the facility.
A pallet racking inspection must be done to ensure that the racking system is stable and avoid compliance issues.
Consolidate Locations
Do you have many locations used for storing similar goods? If yes, you can consider combining the locations to come up with better warehouse space utilization. Consolidating warehouse locations will offer better space usage and improve the supply chain performance and reduce the cost.
You can consider consolidating items that are to be shipped is a similar destination into one truckload, this way, you will be reducing the transportation cost, ship more often, and ultimately improve your profitability.
Utilize off-site Locations for Overstock
If you have an excess inventory for various items, consider storing them at an off-site storage facility. This way, you will reduce clutter and free up some extra spaces for supporting the fulfillment operation.
Automate Data Collection and Cargo Handling
Manual handling of items can lead to ambiguous results due to either inexperienced workers or just human error. Mistakes that can occur are tripping over cargo and sometimes workers forgetting where a specific product is located.
But with automation, things are different. Data is collected automatically, and there are fewer chances of things going irrational. On the other hand, automating cargo handling will ensure that all the cargo is loaded in its assigned place and everything is entered into a computer correctly. When ceiling height is limited horizontal carousels are a great option to achieve high performance, reliability, and safety.
Use all the Available Space
Warehouse storage space can be restricted; therefore, it is significant to use every inch of space to your benefit. Ensure that the racks are made in a way that they will utilize both vertical and horizontal spaces available.
Stacking items aimlessly tends to use up a lot of space; this not only prevents the workers from storing more cargo but also makes it harder for them to do their tasks competently and quickly.
Bottom Line
Maximum usage of warehouse space is possible if you design it in line with the orders you ship and receive. Additionally, utilizing the right warehouse equipment can play a major role in improving the efficiency and the safety of the warehouse workers. Keeping your warehouse organized and well managed will help you reduce your costs and improve your efficiency considerably.
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