1. Install case flow lanes above pallet flow pick modules. A common pick module configuration is one or more levels of pallet flow rack that faces a conveyor or travel aisle for case picking. The height of each level is typically two or more feet greater than the height of the product in the flow lanes. To use this space, install case flow lanes above the height of the product on the pallet flow rack. Adding a level of case flow in the air space above pallet flow rack not only increases space utilization, it also enhances productivity by allowing the operator to make more picks on each trip down the aisle.

2. Create reserve storage near receiving and shipping docks. Warehouses often designate large areas for staging inbound and outbound loads near the docks. Instead, use that space for reserve storage. That way, inbound inventory can be putaway directly from a truck, and outbound orders can be picked within 20 or 30 feet of the docks. Either way, you recapture space and reduce travel time.

3. Make use of the space above inbound and outbound staging areas. One easy to implement tip for warehouses with conventional pallet racking is to extend the racks out over the dock areas. The floor positions under the rack would continue to be used as staging positions but the rack positions would be available for product storage. It has the additional advantage of putting more products closer to the dock to minimize operator travel during picking and putaway.

4. Reconfigure pallet racks to better fit the product stored in them. In most warehouses, many pallets of product would fit into pallet rack openings half the height of the location they are currently stored in. By reducing the height of a group of pallet racks, additional levels can be added, resulting in more storage locations.

5. Maintain a minimal (1 – 3 days) inventory of cartons for shipping and packaging of products. Find a local supplier who is willing to hold inventory for you and deliver on short notice.

6. Optimize pallet patterns. Selecting the right pallet pattern for each item, depending on the case size, makes a significant difference in how well the available pallet cube is used. Better use of the pallet cube reduces space requirements.

7. Perform a slotting analysis. Don't assign pick facings that hold months' worth of sales. Instead, utilize pick-from-reserve concepts where no primary pick face is assigned for slow-moving product.

8. Replace floor stack lanes with drive-in rack if the ceiling height allows more levels than can be supported with stacked pallets. For instance, if product stack height is limited due to the package rigidity to three levels and ceiling height would allow four or more levels, drive-in or drive-through racking would enable taller stack heights.

9. Utilize the full depth of reserve locations. When it comes to decked racks, a storage location that appears full from the front may have space behind for storage. If a single SKU is designated per location, look to see if the size of the location can be reduced. If SKUs are co-mingled within a location, evaluate if the space could hold more inventory.

10. Use technology. Space utilization can usually be improved by 5 to 10% just by implementing a low-level warehouse management system (WMS) to direct putaway operators to the right type of storage locations for product.

11. Override FIFO. If you can bypass first in/first out rules in your WMS when appropriate, you can gain space by directing partial pallets to pick locations on putaway or by replenishing partial pallets first.

12. Re-evaluate floor storage lanes. They should be no wider than the characteristics of the unit loads stored within the lanes. There's no need to have a 50-inch wide floor storage lane for a 40-inch pallet.

13. Put desks under decked rack sections. Even paperless systems require a place for supervisors and workers to keep information or terminals. By putting desks under racks, you can use all the space above for storage.

14. Re-evaluate travel aisle widths. Travel aisle widths should only be as wide as necessary to accommodate the specific materials handling equipment in the facility.

15. Handle product in bulk storage without pallets. If the product is rigid enough to form a solid stack without a pallet, use roll handling or clamp lift truck attachments for handling and stacking.

16. Relocate automated systems. Installing a shipping sorter on a mezzanine, for instance, can free up floor space for additional staging of to-be-shipped product or empty pallets for product palletizing. As a side benefit, you will also improve personnel and traffic flow patterns.

17. Store product in trailers. When trailer load quantities of single SKUs arrive, store that product in the yard or at docks in trailers or even in shipping containers.

18. Match dimensions of product cartons to pallet footprint dimensions. To get more space, re-examine products to make sure that they fit in the carton with a minimum of air, that the carton fits on the pallet without wasting space or overhanging the pallet, and that the pallet fits the rack. If the cartons aren't modular to the pallet, you're not using the entire pallet footprint most efficiently.

19. Attack high-cube inventory. Big and bulky products consume a disproportionate amount of warehouse space. Often, these products don't have rigid FIFO requirements. In those cases, the product can be received more frequently to reduce the amount of inventory on hand, drop shipped from suppliers, or stored in the back of the warehouse in  excess reserve storage to free up space.

20. Use open shelving for long items. If you have a few stock keeping units (SKUs) that are longer than conventional shelves, consider using two adjacent shelf sections for storage. If the quantity of goods is small, this type of storage will take less space than pallet storage.

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Click on the icon to see how Thermo Forma saves space with a vertical lift module. (The proof is in the storage - from August 2002)