Key Strategies for 2025

This guide outlines essential strategies to boost warehouse storage capacity, ensuring your operations stay efficient and scalable.

What is Warehouse Storage Capacity?

Warehouse storage capacity refers to the volume of stock a facility can hold, usually measured by pallet count or total stock units/value. When a warehouse exceeds this capacity, it disrupts goods receiving, order fulfilment, and overall efficiency.

How to Increase Warehouse Storage Capacity

Improving storage capacity involves four key phases:

1. Assess Your Current Capacity

Start by reviewing your warehouse layout and storage systems. Calculate capacity based on occupied versus available space and assess how efficiently it’s being used. Look for:

•Poor slotting or mismatched rack heights

•Underutilised multi-depth storage

•Safety issues due to cramped layouts

Even if your warehouse feels full, reconfiguring racks or upgrading systems can unlock additional capacity. Keep in mind that operating at 100% capacity often reduces efficiency due to slower replenishment and stock access.

2. Forecast Future Storage Needs

Next, assess both current and future storage requirements. Build a detailed material flow model that reflects expected growth, seasonal demand spikes, and stock movement patterns.

Each type of storage media—such as pallets, barrels, or long goods—needs its own forecast to ensure the right mix of solutions. Also, factor in any inventory segregation requirements (e.g., not storing liquids above powders in food or chemical warehouses).

Inventory optimisation can provide deeper insights into current stock behaviour and future needs.

3. Optimise Storage Strategies

With data in hand, explore strategies to improve space use within your physical and financial limits (CAPEX and OPEX). Key considerations include:

•Space Utilisation: Maximise building height and footprint. Tall warehouses may benefit from VNA (Very Narrow Aisle) racking or automated systems.

•Access Needs: Choose single-deep storage for easy access or multi-depth for high-volume SKUs—each suits different stock profiles.

•FIFO Requirements: Use pallet live racking for FIFO. Pushback or drive-in racking works for bulk storage but limits selectivity.

•Offsite Storage: Helps manage peak demand but adds transport and handling costs.

•Cost Efficiency: Evaluate equipment depreciation, labour impact, and storage density.

•Operational Flow: Maintain clear staging areas and traffic lanes to avoid bottlenecks.

•Throughput Speed: Align storage systems with retrieval needs—VNA setups may slow picking rates.

Choosing the right mix of systems often requires expert input. The Chartered Institute of Logistics and Transport (CILT UK) offers helpful planning resources.

4. Create a Warehouse Storage Plan

Once you’ve selected a strategy, develop a practical implementation plan:

•Draw Detailed Layouts: Include storage systems, CAPEX projections, and material handling equipment (MHE).

•Evaluate Operational Impact: Consider how changes affect resourcing, costs, and workflows.

•Update Processes: Revise picking, put-away, and replenishment processes. Adjust system logic and location numbering as needed.

•Create a Realistic Timeline: Include design, procurement, installation, and testing phases.

•Ensure Operational Continuity: Plan a phased rollout to minimise disruption. Train staff and label racks clearly during the transition.

How The Supply Chain Consulting Group Can Help

We specialise in helping businesses unlock their warehouse capacity potential through tailored layout design, data-driven modelling, and operational improvements.

Our services include:

•Warehouse redesign

•Material flow analysis

•Storage system selection

•Inventory and throughput optimisation

At The Supply Chain Consulting Group, we help businesses unlock warehouse capacity through expert planning, data analysis, and storage optimisation.

If you’re looking to redesign your layout, improve throughput, or future-proof your operations, contact us today on 01926 430 883 to speak directly with one of our warehouse optimisation specialists.

 The post Key Strategies for 2025 first appeared on Warehouse & Logistics News.