Dealing with yet another complaint from the warehouse supervisor about lack of space, can be frustrating, but before you consider leasing a new space, there may be other options for you to try. If you contact a professional racking supplier, you’d probably find that you simply have a problem of optimization.

Warehouses tend to order shelving and racking in only one configuration; it may be cheaper to buy in bulk or maybe they expect it to be easier to expanded. Whatever the reason, it turns out to be an inefficient way to store goods.

At Monarch limited, we advise our new customers to evaluate their current stock (and what they expect to stock in the near future), so that the shelving ordered will be fit for purpose. Knowing the size and bulk of the SKUs the business processes, will lead to the purchase of a more efficient racking system, and not having to move whenever SKUs seem to increase in quantity. Segmenting the SKUs into fast-moving and slow-moving, will impact where and how they are stored. This also has determines whether picking them will improve or hinder warehouse efficiency.

 

Slow-moving Products

These are SKUs that are infrequently picked to fill orders daily; they are generally touched only a couple of times to fill the handful of orders needed. They generally form a large percentage (up to 50%) of all SKUs processed.

Placing them in high reach locations, ensures that they are kept out of the way of everyday traffic, and don’t impede warehouse efficiency. To store slow moving SKUs, we recommend storage on steel shelving, bin shelving and on vertical lift modules.

 Pros of Steel Shelving:

• Relatively simple to set up; it can be done by warehouse staff.
• They are modular in nature, so can be easily expanded.
• Very pocket-friendly storage option.

• Their relatively low height (8ft. max) means they ‘waste’ overhead space.

Pros of VLMs:

• The automated system help reduces human error.
• The structure is modular and can be increased vertically.
• The use of add-ons like curtains and trays help with correct sorting of SKUs.

Cons of VLMs:

• It’s very expensive to install.

 

Fast Moving SKUs

Because they are fast moving, they require multiple pick face locations for workers to visit compromising efficiency. They account for about 10% of all SKUs carried. Storage of fast moving SKUs, is best achieved using dense storage options like bulk stacking and drive-in racking.

Pros of Bulk Stacking:

• This is storage on the warehouse floor, so it’s ‘free’ i.e. no further capital investment required.
• SKU’s can be arranged as densely as possible to maximize space.
• Best suited for goods that are in small individual units.

Cons of Bulk Stacking:

• The stack gets more unstable as the pallets are piled on each other
• There is a loss of effective space utilization as the overhead height isn’t used and the floor space could be used for other applications

Pros of Drive-in Racking:

• Allows very dense storage of SKUs
• Relatively cheap to purchase

Cons of Drive-In Racking:

• Easily damaged by passing forklifts
• Over time, unused pallet space can accumulate leading to loss of that space.

 

Some warehouses classify some of their SKU’s as medium moving SKUs; these can be stored on drive-in racking or push-back racking. Knowing the type of SKU carried, how much of your storage capacity they take up and the picking velocity will help business make better storage decisions.

 

At Monarch Ltd., we stock high-quality used and new storage systems, whether it’s push-back racking, shelving, drive-in racking etc. Our expert engineers can give advice on how to integrate low-cost solutions like mezzanines with your existing structure. Contact us today for a professional consultation.