In warehouses, space is equal to money; the more space you have, the higher the money you can earn. In order to get more space, you do not always need to extend your warehouse; effectively utilizing the available space would be enough. Here are a few steps that can help you to improve your warehouse’s storage capacity.

●  Using the vertical space

The first step that you have to do is looking up and making sure that you are using all the vertical space available. To take advantage of your clear span height, you can investigate the storage media. When you are utilizing the vertical space, be sure that how your design might impact your sprinkler design and fire code.

●  Outsourcing

You can consider JIT (Just-In-Time) outsourcing; JIT delivery is widely used to free-up space and reduce inventory costs. When you are using JIT delivery, you do not need to store all the unwanted things at your warehouse; just store the things that you need frequently and for the rest of the things you can use JIT delivery. JIT delivery helps you to keep your warehouse simple as well as spacious.

●  Improve forecasting

Often overstocking will be the result of inaccurate forecasting so it is better to look at the volume of the inventory stored in your warehouse. You can maintain the proper inventory levels with the utilization of improved forecasting and tracking, and it will help you to improve the utilization of precious warehouse space. When you are improving forecasting, you can keep the accurate levels of your inventory and you can lower the storage costs.

●  Slot analysis

Performing an effective slot analysis of all the storage areas in your warehouse would be helpful to utilize the available space. Analyze all the storage areas of your warehouse and use warehouse storage areas efficiently, and also determine optimum storage size and location for each item. This slot analysis will reduce storage space as well as improve throughout, and your warehouse will be utilized wisely.

●  Keep it simple

When you have a choice between simple and complex solutions, go for the simple solution; for instance, a simple choice is, considering adding a pallet rack tiers upward and an example of a complex choice is moving racking to narrow aisles. Whenever you have a choice between simple and complex, go for a simple solution; it will save your time as well as save your space.

●  Using appropriate storage equipment

Analyze inventory levels, storage capacity, and picking frequency for each product to determine storage requirements; after analyzing you can get a clear idea about your warehouse and your inventory levels. This will help you to install the right equipment and configure it accordingly to optimize storage space.

●  Using the best technology on board

Technology may change constantly and your business may not be able to adapt to the cost of employing new technologies in  warehouse, but in the modern supply chain, you can not be effective without implementing the new technologies in your warehouse. You do not need to change the implemented technologies frequently but at least you must implement a few of the latest technologies in your warehouse. For instance, WMS (Warehouse Management System) as a standalone technology can pay for itself and represent a good turn on investment.