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How To Increase Storage Space In Your Warehouse Without Expanding

Poorly Utilized Warehouse Space 

This is caused by changing storage requirements, steady growth and increasing storage requirements. Space that is utilized poorly is common in all warehouses and is non-exclusive to storage conditions or inventory types.

The problem is, warehouses are usually built to handle a set number of products or units. Those same warehouses are also expected to adjust accordingly with customer demands and become more efficient over time. To accomplish these goals, warehouses usually develop long-term plans to create customized plans for the warehouse to increase storage space without upgrading to a new warehouse.

Customizing the floor spaces and work stations will help increase storage space by optimizing the plan you have in place already.

Finding Even More Space

Often general space constraints and inventory excesses result from poorly optimized warehouse conditions but continuously improving sales and consolidation of operations creates real space deficiencies. When facility expansion or relocation are not an options, three potential paths can be followed to still increase space when it seems like there is none available. 1.Utilizing outside storage, 2. Redesign of internal warehouse, and 3. Inventory management optimization.

Temporary or Outside Storage

Inventory builds usually occur to hand new product integrations or seasonal peaks. The demand for seasonal products that will be needed in abundance are great examples of inventory builds that were planned. These types of builds require measures to handle inventory peaks and are unfortunately unavoidable. These items can get in the way of regular inventory and create tight space temporarily. Keep reading to find out how to avoid seasonal peaks of inventory.

One way to handle inventory peaks is to use 3rd party storage to store all of the excess inventory your are currently keeping in your warehouse or ship directly to the consumer. This will cost you additional money, but some warehouse owners have reduced the amount of money they were paying by teaming up with different companies that have different peaks but the same storage needs.

For example, a manufacturer of sausage that has winter inventory peaks could team up with a turkey producer that has late summer peaks. Together, the two could work out a contract for 3rd party storage with each other.

Trailers also make great temporary storage. Although, this method could cost you a couple of hundred dollars per month. Storing this way is only effective when the company has partnerships with dedicated carriers. Usually, the carrier will manage the freight as part of the agreement. The carrier also benefits monetarily and by knowing their freight will be constantly used throughout the year.

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