Would you turn down the prospect of more business?

Many businesses face this question regularly; whether it’s taking advantage of a discounted offer from a supplier or tapping into a seasonal spike in demand, they have to make a choice. More often than not, they have to grab it when the opportunity arises. It has nothing to do with being greedy, but if businesses are not flexible and able to support an increasing number of SKUs, their competitors will swoop in and take away market share.

This amassing of SKUs eventually leads to a space constraint, but that is a necessary work ‘hazard’. At the rate at which some industries grow, it would be foolhardy not to expand when you can. Industries like brewing are reportedly growing at the rate of 300 new SKUs per year!

Faced with space constraints, mangers usually have two options. On one hand, they can look into reconfiguring (retrofitting) the warehouse. While this is a relatively easy option, there is no guarantee that the process won’t have to be repeated in a few months.

If they choose the other option of simply relocating, they’ll have to deal with the perplexing world of warehouse pricing.

It’s perplexing because everything from how tasks are performed (involving the use of automation or not) to how products are stored (unstacked or unstacked, on the floor or on racks), can affect the costs of storage.

Despite the seemingly bleak situation, it can be rectified if a few simple guidelines are followed during the design phase. These include:

• Identifying what is really important i.e. what SKUs they carry and how they can carry them efficiently. Are they storing bulky items on pallets alone or using wide aisle racking too?

• Allowing for as much uncertainty as possible i.e. addressing the potential running out of space from the onset. Can we use multiple storage methods to minimize space used?

• Ensuring our solution doesn’t ‘design us into a corner’ or prevent us from using the building and equipment to its full extent.

Keeping these guidelines in mind, any warehouse (old or new) can be built in a way that allows agile adaptation to any future uncertainty. The following are some of the biggest challenges warehouse designers face when addressing uncertainties:

• Identifying the real space consumers in the building and how can they be used more efficiently. Is it poorly designed or the use of the wrong type of racking that is consuming space?

• Identifying any space in the building that is under-utilized spaces e.g. vertical spaces over shipping areas or docks.

• Positioning the building so that you have an ‘escape route’. This design element deals with how the building is sited on the land, so that when expansion is required, it can be done with cost and minimal disruption to operations.

With continuous uncertainty in the warehousing industry, due to faster moving SKUs, shorter lead times and more businesses shipping direct-to-consumer, it is important than businesses acknowledge and allow for the uncertainties that will occur.

Designing for the future doesn’t necessarily involve buying the largest warehouse space you can afford. It’s more about intelligent designing. Combining mezzanines with different racking configurations can keep a distribution centre compact yet highly efficient. These compact designs are also easily adaptable to future uncertainty (expansion).

When it comes to choosing racking and shelving options, biggest isn’t always the best. At Monarch Shelving, we’ll work with you to design a storage solution that plays to your strengths not your weaknesses. Whether it’s installing your first mezzanine or reconfiguring the space to carry more SKUs, Monarch Shelving Limited has the equipment you need. Contact us today.