7 tips to Maximize Your Warehouse Space

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Utilization without Expansion

When your warehouse’s space is occupied between 80 & 90%, you face problems of congestion and get constricted. With multiple tasks on hand, you may wonder how you can increase the storage capacity without actually expanding your warehouse space and be stressed about the cost escalation. As solutions are available for optimizing your warehouse space without expanding it. You can leave aside your worries. And start by reading this article, where we have provided In 6 tips that are practical in nature with the application of which you can optimize the warehouse space and reap benefits in terms of reducing costs, improving the mobility of the workforce without sacrificing their safety.


1. Measure Key Performance Indicators, (KPIs)

Measurement of KPIs assumes importance for narrowing down the aspects that you need to improve the warehouse storage space. This calls carrying out of the following:

  • Cost of Inventory

A variety of cost analysis as capital expenditure (CAPEX), storage, damage, obsolescence, etc would have to be carried out. This would provide you an idea of the cost of storing inventory over a particular time period in terms of:

  • Storage Productivity

This would help in the determination of the volume of inventory as a measure of inventory stored per square foot of your warehouse.

  • Space Utilization

This metric can identify the percentage of space the inventory occupies against the total warehouse storage capacity.

  • Inventory Turnover

Inventory turnover would provide you with an idea of how fast the inventory is passing through your warehouse. It is a measure that indicates the number of times an inventory is sold and replaced within a specified period of time.

  • Inventory to Sales Ratio

It is a useful measure that lets you know the amount of inventory you are in comparison to your fulfilling sales orders.

2. Install a Warehouse Management System

Installing a warehouse management system increases the storage capacity by providing information on your inventory and storage space utilization in real-time. It also frees up storage space by alerting you of obsolete inventory.  You can systematically organize your products as the system does the job of assigning floor and shelving locations based on the sales volume and unit load dimensions. Thus, modern warehouse management systems provide you with complete supply chain solutions without having a necessity for you to increase the warehouse space that would entail recurring costs by way of rental, etc.

3. Optimize type and positioning of shelves

Irrespective of the choice of nature of the racking system, it is necessary to position the shelves at a height that would not strain your employees to reach. For this, you can consider changing the racking system and you can choose from a variety of racking systems; here are some RACKING SYSTEMS for your choice:

  • Push-back Racking
  • Drive-in Racking
  • Pallet Flow-through Racking
  • Single Deep Selective Racking
  • Double Deep Selective Racking
  • Pallet Runner Shuttle Racking
  • Flow Rail Racking

4. Use container suiting the size of the goods

By storing unpacked items inside containers may appear to maximize space but when done in the wrong way, it results in the wastage of lots of warehouse space. This common mistake that is widely prevalent with small businesses can be rectified by making available containers of varying sizes. Thus, by resorting to storing smaller items in smaller bins and vice versa in respect of larger ones, you can increase the storage capacity.  

5. Changing materials in Shipment of supplies

By changing the materials you use in the shipment of supplies, you can increase the storage capacity. For instance, a paper-based void-fill system that employs a single A 4-sized pack of paper would provide you the same protection as the three bags of polystyrene chips offer. When you switch to a paper-void fill system, you need not have to use much of your storage space for the shipment of your materials. This is due to this system offering you the benefit of reducing the number of boxes required to ship your goods.

6. Consider installing Mezzanines

This can be a cost-effective solution. As it does not call for expanding your warehouse. Which at the same offers you a way to utilize the vertical space in your warehouse. It can also be quickly installed, without causing disruptions to your existing warehousing operations.

7. Consolidation of storage locations

Poor inventory management can be a result of multiple items with the same stock-keeping unit, (SKU) being kept at various positions scattered in and around the warehouse. This results in wastage of warehouse space and also causes poor visibility. You can remedy this by consolidating your inventory into a single SKU location with the help of steel shelving and wire docking.

We can conclude the article by pointing out that optimizing your warehouse space without resorting to expansion would make your operations more productive and less costly. We have offered you handpicked tips. That would help in keeping your costs in control and at the same time boosting the revenue.



WAREHOUSE, SPACE, INVENTORY, RACKING, COST, Warehouse Space, storage capacity, increase the storage capacity, STORE, INSTALL


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One Response

  1. I like what you said about utilizing vertical space. My office could use some pointers in warehouse management. I’ll have to hire someone to help with safety rules.

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