Maximise Warehouse Space Without Moving: Smart Storage Solutions to Boost Capacity

Struggling for warehouse space?  There may be no need to move 

When there is pressure on space in your warehouse facility and it feels too “full,” your first thought is to consider expansion. This could involve leasing or purchasing extra space or adding a new location. Finding the right space, in your ideal location, at the right price is difficult and time-consuming. Sourcing funding is expensive, and the disruption is stressful and causes distraction. 

What is the smart alternative? 

Optimising your existing space can yield surprising gains in capacity and efficiency. There is always the potential to improve warehouse layout, racking configuration, stock profiling, and the selection and use of storage media. For example, even if your warehouse appears to be full, capacity can be increased by employing storage solutions better suited to the goods’ profile. The first step is to ensure you understand your existing space and the flow and utilisation of the current layout. 

Practical ways to boost capacity

Poor “slotting”,  where goods are stored in unsuitable and ineffective locations, contributes to inefficiency and low productivity. Where goods are assigned to zones based on demand, weight, size and picking frequency, space utilisation is maximised and employee travel time is reduced. Standardised pallet sizes and modular storage bins help reduce wasted space between items.

Is your choice of storage media matched to your SKU profiles? Improving storage capacity involves both focused planning and physical enhancements to the layout and infrastructure. Maximise vertical space by installing taller racking systems and using mezzanine floors, which offer more storage within the building’s footprint. Narrow aisle or very narrow aisle (VNA) racking systems also increase the amount of storage within a given area. Specialised forklifts are designed to navigate tighter spaces. 

More sophisticated automated storage and retrieval systems (AS/RS), vertical lift modules (VLMs), or carousel systems can improve capacity by compacting goods into smaller areas without restricting access. Implementing cross-docking zones, where goods are sorted and shipped directly with minimal storage time, can also free up space and reduce congestion in high-turnover areas. 

Efficient stockholding 

Optimising the level of stock that the business holds is the objective. There is a delicate balance between minimising stock levels and continuing to meet customer demand. There may be a tendency to over-purchase to avoid future supply bottlenecks. Goods may expire, be difficult to move, or be out of season. The aim is to ensure the correct balance between achieving service levels and holding costs. Balance stockholding levels through better forecasting and supply chain planning.

The benefits of optimising your current space

1. Improve storage capacity, throughput, and operational flow.Focusing on better warehouse space utilisation means that you can store more goods within the same footprint. Reconfiguring shelving, improving slotting and implementing vertical storage solutions increases storage density without compromising accessibility. Congestion will be reduced and picking streamlined. This leads to fewer errors, greater order accuracy and shorter cycle times.
2. Reduce operating costs and improve productivity.A well-organised and space-optimised warehouse translates directly into cost savings. More efficient workflows lower labour costs and improve employee productivity. Streamlined processes also mean fewer mistakes, less handling damage, and reduced stock losses.Automated systems like conveyors, vertical lift modules, or mobile racking systems can improve operational efficiency while reducing manual labour and errors. A bonus from improving layouts and workflow efficiency is a saving in energy costs.
3. Delay or eliminate the need for new premises.Maximising the use of existing warehouse space can delay or completely avoid the need to invest in new facilities. Moving premises is disruptive to operations, causes downtime, and creates many logistical challenges. Relocation costs can be significant, especially in times of economic instability. Get more value from your assets by operating more efficiently.

The Supply Chain Consulting Group (SCCG) helps clients increase capacity  

An exclusive UK distributor of high-end niche perfume brands to retailers engaged SCCG to provide a warehouse review to look at operational improvement alongside a capacity assessment. The client was considering moving to a larger warehouse to accommodate growth. By redesigning the layout, and using dense storage technology, capacity within the existing building was improved, extending facility life to accommodate a further doubling of turnover. SCCG provided interim management support to implement the changes, including process improvements to improve productivity and the adoption of a new warehouse management system.

Beyond the Bean (BtB) is an independent business located in Bristol, UK, specialising in manufacturing and supplying products to the café bar and food service industries. BtB engaged SCCG to review its warehouse operations, with a particular focus on gaining greater storage capacity to accommodate its growth. We provided layout drawings showing increased storage density with a capital equipment schedule alongside other recommendations, including the use of a temporary building for overflow storage. The changes were successfully implemented along with our continuing project support. 

We can do this for you, too

The Supply Chain Consulting Group is a leading UK-based supply chain and logistics consulting firm. Our reputation has been built on assisting companies to meet their business goals through effective logistics strategy and design. We have completed over 500+ projects in manufacturing and distribution organisations across 30+ countries. Let us work with you to review your current capacity before you commit to investing in more space. Our experts in warehouse design, layout and optimisation are here to help.