Here at Industrial & Commercial Design we like to give the best advice and consultancy on warehouse efficiency.

We have visited many and the space problem is a universal one not related to size or financial status of the individual company. Here at ICD we have recommended one or more of the following solutions based on each individual situation, for freeing existing space in the current center rather than moving to a larger facility and improving warehouse efficiency and optimization..

1. Get rid of waste

Slow or non-moving products begin to cut into productive space. These need to be sold at discount, or donated to groups. There will be an accounting hit as value of inventory is reduced, but the loss can be justified by considering the real cost of storing and moving obsolete stock. Additionally, profit opportunities may have been postponed for lack of space, actually reducing return on investment.

2. Move excess and out-of-season product to other storage areas.

Use available secured yard space on the premises, storing product in trailers or tents. This is especially useful when it will not be needed for several months. Be sure to stretch or shrink wrap to prevent damage from leakage when tents are used.

Rent outside storage space in a sub-prime, low ceiling, unheated building for rarely used product or product that can be shipped independently from regular orders.

Ideally all products stored remotely should be in bulk, several pallet deep, floor stacking to provide the best cube utilization.

3. Clean up your returned goods area.

As much as 30% of prime floor area may be devoted to storing and processing returned goods. Consider moving the entire returns operation to lower cost off-site space, or subcontract returns to an outside service provider or handicapped-staffed workshop. Using both options simultaneously will definitely provide real cost savings, as well as release much needed space for productive purposes.

6. Ship Direct to Customers.

Drop shipping from supplier directly to customer has been used for years to save space and handling in the warehouse. A variation on this can be very efficiently used when importing products from other countries for major customers. Entire container loads of pre-selected and pre-marked products can be drop shipped to such a customer, who in turn will unload the container. Since he did not receive stretch wrapped, palletized loads, you will probably share some of the savings with him. However, in addition to eliminating the storage space, you have saved all in-country shipping and double handling