Warehouse Peak Season

How To Increase Your Warehouse Space For Peak Season

Holiday season might be the last thing on anyone's mind during summer. However, savvy entrepreneurs know better. They start preparations during summer for imminent holiday season challenges. Such challenges might include ways to increase warehouse space for instance. Those who start early will benefit the most.

Ecommerce has undergone unprecedented changes in recent times largely due to covid. Online buying soared to $861 billion during 2020 in the US. This presents new ecommerce opportunities as well as logistics challenges.

Logistics and warehouse costs can amount to 20% of order costs. So you should make the best use of limited warehouse space and streamline logistics operations to keep related costs down. This will maximize profit margins especially for the upcoming holiday season to make it even more lucrative.

Here is how to increase warehouse space for the holiday season.

Check Warehouse Layout
First study your warehouse layout to identify possible changes for optimization.

Assess your warehouse for space utilization. Is excessive inventory taking up too much space? Are there poorly utilized spaces in the warehouse?

Inventory Allocation
See how inventory is allocated in the warehouse. Inventory placement should allow easy access for quick retreval.

One suggestion is to assign highly demanded items to prime locations for quick access. This can expedite workflow.

Traffic Movement
There should be enough space to facilitate fluid movement for personnel as well as equipment. Not only will this permit faster working, it will also ensure employee and equipment safety.
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Forecast Warehouse Demands
Hold a high level meeting with sales and marketing to ascertain projected demand for the holiday season. This will indicate how much warehouse space is required.

Also take note of other key issues. Like when the inventory is expected to arrive and what will be the turnover rate.

Optimize Warehouse Space
Almost every warehouse has room for improvement. Over time, operations can scale substantially. Thus there will be parts that are underutilized, improperly managed or wasted. You need to identify such shorcomings and remediate them.

Vertical Space
Pay attention to vertical storage space. This is often underutilized. It is vital to realize that the space between racks and ceiling is a prime asset that is often overlooked and squandered.

Stacking exisitng storage racks higher can free up a lot of space even in crowded warehouses.

Keep seasonal items and extra stock near the top. Rapid turnover items should be at the bottom for fast retrieval.

Gather Pallets
Are there empty pallets? If yes, then stack them on top of each other to free up space.

Aisle Width
Is it possible to reduce the aisle width without compromising movement and safety? If so, redesign and reduce the aisle width.

Better Use of Slots
Keep each time in slots of the right size. Unused or wasted storage space will be minimized.

Consider a Mezzanine
Installing a mezzanine might be feasible. Since this is an expensive upgrade, you should consider all factors carefully. Under the right conditions, a mezzanine can maximize storage space.

Storage Depth
Storage depth is also vital besides height. Double-depth racking might work if the warehouse layout allows it.

Streamlined Workflow
You might be able to streamline the warehouse workflow in various ways. Can you consolidate receiving and shipping docks without disrupting efficiency? Can you further reduce supply storage?

After optimizing storage space, the next logical step is to utilize it as efficiently as possible.

For that, you will have to upgrade logistics equipment. If there is a need for new equipment, now is the time to order it. Not when the peak season is underway.

Stackable pallets allow for better use of storage space. Pallet dispensers are also a good idea.

You might want to look into pallet exchangers and inverters for easier and faster pallet handling.

Workstation equipment like powered carts that can hold computers and scanning equipment are also key to streamlined operations since they can be placed strategcially to minimize walking distance and keep essential items within quick reach.

Using aforementioned tactics, you can increase your warehouse space for the holiday season.

MIDCOM has been helping warehousing companies improve efficiency since 1982. Talk to a Specialist today by calling (800) 643-2664.

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