Out of space? You are not alone. With increasing SKUs and inventory levels, many warehouse operators are staging products in the aisles, using outside storage, and mixing SKUs in locations. All of this lowers labor productivity and impacts quality. So, where is the hidden capacity in your warehouse?

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With e-commerce operations moving at an ever-increasing pace, you must take every advantage to meet consumer expectations. You not only want to save the customer time on their order, but also gain manufacturing and processing time by doing so. With careful consideration and a robust process, each aspect at play in a distribution center or warehouse could be an opportunity to save seconds.

To maximize every advantage, more facilities are turning towards automation to meet those strong demands. By utilizing automation, a distribution center can provide a more flexible and efficient environment in addition to more accurate orders delivered on time. The ability to scale and grow with automation is also an attractive one. But to jump headfirst into the automation process is a daunting task, and can cause an operations manager cause for concern. Two overlooked areas that can become a “tipping point” for this process are mezzanines and VRCs.

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Pallet storage is easy, or at least easier

The idea behind pallets was to unitize and standardize the storage of standard blocks in racks designed to store those units. The more standard the item, the easier it is to store and handle. You make sure your rack and forklifts can handle the pallet size and weight, and essentially you have a relatively dense, easily-accessed storage scheme. It isn’t as easy for loads like tube, pipes and other long, heavy loads. There are options of course, and we are here to break those down for you.

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In part one of this series, we discussed the fundamentals of facility measurement and the impact building column types and spacing can have. The most common issue people have with layout tends to be building columns, but working with obstructions is a close second. Let’s break down the common obstructions that can throw off your measurements.

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In a recent article released by the Wall Street Journal, warehouse space was showcased as being at its tightest since 2000. While this should come as no surprise that this issue of space is consistently growing, the rate at which warehouse vacancy is dwindling is far outpacing the increase in new construction.  In the second quarter of 2018 alone, industrial real estate availability fell to 7.2%. This creates in a unique predicament for those thriving and looking towards expansion, but also provides opportunities for those who can maximize their available footprint.

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Online sales will account for 17% of all U.S. retail sales by 2022, up from a projected 12.7% in 2017. As you might imagine, warehouses are suffering from a major capacity crunch. Whereas previously warehouses were organized to handle large volumes of each product, E-commerce orders are characterized by a low quantity of many items or just a singular item. In an e-commerce oriented warehouse, huge quantities of SKUs exist, each needing their own specific storage slots.

Warehouse managers know that inventory levels can fluctuate anytime within a sales season, especially during a holiday when inventory levels are typically at their peak, often double or triple normal levels. Plus, because of the Amazon-effect, consumers are demanding more products with faster and better service, putting additional strain on warehouse space. Because of this growth, many businesses are looking for additional space to distribute and store products, but warehouse real estate is hard to find.

What is a retailer to do? The answer for additional space can be found within the four walls of your current operation.

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We help clients with structural mezzanines and rack supported systems in a range of facilities.

Mezzanine options range from professionally manufactured to home-made to local fabrication shop to professional contractors. If you have a mezzanine or storage platform custom fabricated, you need to be sure your contractor is complying with OSHA & local safety regulations, particularly on guard railing, stairs and gates. If your fabricator doesn’t routinely work with mezzanines, this is something you’ll have to do on your own. The best policy is to look at established vendors if you don’t want to micro-manage the details of building permits, code compliance, and OSHA’s blessings. Here’s a breakdown of the handrail issues you might run into:

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You’re already paying rent, taxes and for utilities of the space in your facility. Even if nearby space is available and suitable, using a work platform to expand makes sense because all these costs are wired in—and don’t typically rise with a mezzanine installation. Use platforms and mezzanines to leverage your existing space for offices, production equipment, storage areas, manufacturing process, product/conveyor sorting and much more. It’s a fraction of the cost of new construction and delivers long term value. Mezzanines also offer significant tax depreciation advantages.

Guide to Mezzanines and Platforms

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There is no storage space as expensive as frozen storage space, which is why companies work hard to maximize storage in these facilities. One of the industry’s most innovative companies, Zero Mountain Cold Storage, decided to increase capacity at its Fort Smith, Arkansas location. The company called on Cisco-Eagle to help it plan and execute nearly 1,200 pallet positions in a combination of freezer and cooler storage areas.

Here is how Zero Mountain found its solution

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As a business grows, usually storage demands also increase, leaving you facing choices like storing goods off-site, relocating to larger facilities, or turning to a third party for warehousing or distribution – choices that increase overhead costs year over year. What if you could avoid those choices and increase available space in your existing storage by removing the aisles between the rows of racking and even shelving?

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