Increasing Warehouse & Distribution Center Space Utilization
Top 10 Ways to Maximize Distribution Center or Warehouse Storage Space Utilization Without Expansion
October 2024
White Paper Overview
One of the big challenges faced by retailers in their Warehouses or Distribution Centers (DCs) is space limitations. A Warehouse or DC is considered out of space once it hits 85% utilization.
Warehouse efficiency drops due to space limitations for the following reasons:
Pallet movements become difficult and restricted.
Process Inefficiencies: Multiple touches or moves of a product/pallet increase costs and slow down processes.
Pallets placed on the floor temporarily restrict aisle movements.
This 85% utilization rate rule of thumb not only applies to warehouse storage but also for receiving, shipping and all other areas of the warehouse. It is impossible to get 100% utilization in warehouse storage due to various limitations including congestion, building codes (e.g., cannot build storage within 18 inches of sprinkler systems), etc.
These space limitations combined with rising prices for industrial real estate space over the past 7 years makes it imperative that companies look first to optimize existing space before moving to new space.
This white paper identified 10 ways to increase warehouse capacity without expanding or relocating your warehouse.