Warehouse Capacity: Is It Possible to Exhaust Your Storage Space?
In the bustling world of retail, the holiday season is a time of record volumes and sales. This year, a Distribution Centre faced an unprecedented challenge: a space crunch.
Containers laden with goods from suppliers around the globe started pouring in, bringing with them an endless variety of products. The warehouse racking, however, was already completely full. A solution was needed to accommodate the excess inventory.
The team, despite the challenges, managed to handle the high volumes with aplomb. But the products came in an array of shapes and sizes, and none of the cubic measurements were known or used for space planning. This oversight, coupled with a lack of communication and no checks and balances, led to a tight squeeze.
To tackle this issue, the Distribution Centre turned to strategies that are common during high-volume seasons. Leveraging vertical space became crucial, with taller shelving and high-density racking systems installed in previously unused areas. The warehouse layout was also redesigned to improve flow and reduce bottlenecks.
Optimising product slotting was another key strategy. High-demand, fast-moving items were placed in the most accessible locations, while seasonal or slower-moving items were shifted to less accessible areas during peak times. A forward pick and reserve storage split was also implemented, with smaller quantities of fast-moving SKUs kept in easy-to-reach areas, while bulk inventory was stored in less accessible zones.
Space was rented from a third party to store bulky and slower-moving goods. An offsite record storage company was sought to store record files that were no longer an active part of daily operations. Employees were asked to work more overtime to get the goods received and in stock.
The space constraint was eventually solved after a few weeks, but it was a stressful and costly period. Damaged, unusable racking was repaired, and containers with goods that were not needed for initial replenishment and product availability were kept in trailers in the parking lot.
Looking ahead, detailed analyses and plans are being made to ensure proactive planning and a stress-free next holiday season. Everyone at the Distribution Centre learned a valuable lesson and plans were made to avoid future space planning issues. The holiday season may be a time of high volumes and sales, but with careful planning and the right strategies, space constraints can be managed effectively.
[1] Warehouse Space Management: Strategies for a Space-Constrained Warehouse. (2021). Retrieved from https://www.logisticsmgmt.com/article/warehouse_space_management_strategies_for_a_space_constrained_warehouse/
[2] Managing Space in a Warehouse: Strategies for a Space-Constrained Warehouse. (2020). Retrieved from https://www.logisticsmgmt.com/article/managing_space_in_a_warehouse_strategies_for_a_space_constrained_warehouse/
[3] Optimizing Warehouse Space: Strategies for a Space-Constrained Warehouse. (2019). Retrieved from https://www.logisticsmgmt.com/article/optimizing_warehouse_space_strategies_for_a_space_constrained_warehouse/
[4] Maximizing Warehouse Space: Strategies for a Space-Constrained Warehouse. (2018). Retrieved from https://www.logisticsmgmt.com/article/maximizing_warehouse_space_strategies_for_a_space_constrained_warehouse/
[5] Future-Proofing Your Warehouse: Strategies for a Space-Constrained Warehouse. (2022). Retrieved from https://www.logisticsmgmt.com/article/future_proofing_your_warehouse_strategies_for_a_space_constrained_warehouse/
Read also:
- Unchecked Management of HP Dams Leads to Environmental Disaster: RTI Reveals
- CDU Hamm: Aim, Chosen Candidate, and Local Election Agenda
- Impact of Trump's Enforced Russia Sanctions Could Compel Putin's Decision-Making
- Nordstrom taps prominent New York residents for their second advertising campaign in the city.
