The quality and efficiency of your warehouse has an enormous impact on your business. Creating more efficient practices will better serve your customers, improve safety and save time. Ultimately, this will also increase profitability. There are several steps you can take to increase warehouse storage and handling efficiency.

1. Calculate Space Requirements Based on Receipts

It’s important to manage space based on the current backlog as well as the expected receipts. When calculating and then arranging space in this manner, it is best to put away product on the same day it is received. Failing to do this can result in increased congestion and make items more susceptible to damage.

2. Design Storage Systems to Meet Current and Future Needs

Designing an effective storage system will increase storage density and improve picking productivity. To start, items that are picked more frequently should be kept as close as possible to the shipping area. This will minimize pickup time. A business should also determine how many orders they receive that are already palletized and ready to be put away, as opposed to those that will need to be re-stacked.

3. Maximize Vertical Space

Just as planners build upward in crowded cities, maximizing space in a warehouse includes stacking items. Floor to ceiling space is just as crucial as surrounding floor space. Pallet racking is the most effective way to use vertical space. Occupational Health & Safety says that the weight, shape and size of items must be factored into the type of pallet racking that is chosen. This will make storage and retrieval easier, as well as ensure better safety standards.

4. Implement Industrial Shelving

Strong industrial shelving and racking is crucial for efficiently storing items in almost any warehouse. Some commonly available shelving options include fixed, mobile, selective, drive in, and pushback. A few tips to more efficiently organize shelving include:

• Never create an aisle along a wall.
• Shelves should be set up on both sides of every aisle to maximize space.

It’s also recommended to never organize shelving in an area that is going in two different directions — position shelving facing east/west or north/south.

5. Improve Inventory Methods

According to Supply Management, adopting a lean inventory system will help ensure that the warehouse runs efficiently and smoothly. This means ordering and storing only what you need. This could include making sure a supplier delivers a smaller amount of a product on a more frequent basis. It’s also critical to incorporate technology when organizing and storing inventory. Mobile computers should be used to more effectively monitor an item from the moment it leaves the dock.

6. Track When Inventory Is Used

Tracking each time inventory is picked will help you to better calculate how much you’re likely to need for your next order. Again, it’s important to use technology to more effectively monitor and store information. But it’s also necessary to properly analyze and use the data. If a certain item is only chosen a few times a year, it may make more sense to drop ship the item from the manufacturer instead of taking up storage space.

7. Use Digital Pictures to Identify

If possible, digital pictures should be placed on the outside of boxes, so what is inside will more quickly be identified. Smallbusiness.chron states that placing pictures on the outside of inventory will help eliminate the mess that’s created when personnel have to open boxes to determine exactly what’s inside.

It’s important to implement a detailed plan when creating an effective warehouse strategy. It’s also critical to regularly assess what’s working and what’s not, and be flexible enough to quickly make necessary changes. While the greatest efficiency in any warehouse is dependent on the features of each warehouse as well as the items that are being stored, following these general tips can help maximize efficiency as well as safety.

If you need additional help, don’t be afraid to hire a consultant. Cato Industrial Racks can conduct a warehouse and operations assessment to help you improve productivity and boost your customer service to the next level. For more information, please call 832-447-1276 or fill out our form.