Last Updated on August 27, 2021 by azamnie
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All e-commerce business owners are looking for different ways to efficiently utilize warehouse space. When the production increases at the production unit, then it is also important to manage the space of the warehouse.
Make sure that it can accommodate maximum products without creating many problems. According to the survey, only a few e-commerce business owners are using their warehouse space efficiently. You can hire the warehouse services provider to reduce the cost of warehousing.
You should examine the space in the warehouse and start searching for various techniques that can help in improving space utilization. If you can easily accommodate a maximum number of products in limited space, then it can reduce your expenditure significantly.
You should always keep one thing in your mind while placing the products in the warehouse is that they can be easily accessible. If you have to make multiple moves to access any product from the warehouse, then it significantly increases processing time.
Here, in this article, we are going to discuss various steps that will help you to efficiently utilize the warehouse space:
1. Examine Your Warehouse Space
You should examine your warehouse space in terms of utilization and capacity. You should try to understand the flow and how you are using the space. It is very important to understand the current layout of your warehouse and also understand the rack configuration.
In addition to this, you should understand the slotting & picking philosophy, receiving of products, putaway, inventory management, packaging of products, and safely shipping them. You should also understand the trends that you follow during the peak season of your business.
2. Optimum Utilization Of Vertical Space of your warehouse
You should look up in your warehouse and ensure that you are using the vertical space efficiently. Properly investigate the storage media and leverage the clean spat height in your warehouse. You should make sure that every cubic foot of the vertical space is efficiently utilized.
3. Utilize Overhead Space of your warehouse
There are some areas in the warehouse where packaging and shipping tasks are performed. These areas are low ceiling height, but the overhead spaces in these rooms are not properly utilized and often overlooked.
4. Place Similar Items At One Place
If you have placed similar products in different spaces, then you should bring them to one location. It will help in optimum space utilization and also let you access your products easily. You do not have to spend more time to locate the products.
5. Cut-Slots With Appropriate Size
You should match the size of the item and appropriately cut the slots in the right size. Make sure you choose the right size for the slots so that you can increase the slot utilization.
You should cut the slots with different sizes according to the size of your products. It will let you utilize maximum space. You should apply this same logic to store the reserve.
6. Store Overstock At Off-Site
You should check your inventory and make sure that there should be no excess of any products. If you have stored extra products in your inventory, then you should consider moving them to an off-site location so that you get extra space to store the necessary items in your inventory.
When you have extra space to store more products in your warehouse, then you can improve the order fulfillment process.
7. Use the Drop Shipping System
If you want to ship large size products, then it is a good idea to consider the dropshipping system. The dropshipping system does not include warehousing, and you have to pick the product from manufactures and directly deliver it to the doorstep of the customers. This system will help in reducing in-house inventory costs.
8. Optimum Building Utilization
You should make sure that you are utilizing your entire building efficiently in terms of space. You have to determine the dimensions of each room and make a plan to utilize every square inch properly.
It is important to determine the stacking height, the spacing between columns, and determine the building impediments.
9. Supply Storage Management
For storing supplies and packaging material, you should try to prevent your inventory from overstocking. You should ensure that there is enough to store the supplies and packaging material inventory.
10. Maintain Simple Process
When it comes to choosing between complex solutions for storage or a simple storage system, then you should always go for the simple one. For instance, you should consider the pallet rack tier direction.
The example of a complex storage solution is moving the rack to the narrow aisles. When you consider the storage solution, then it is recommended to consider the return in investment.
Approximately 15 to 20 percent of order fulfillment cost is utilized for warehousing systems. This expe nature can be reduced if you utilize the space efficiently. Use the above-mentioned tips to ensure that you are using your warehouse space properly.