By James A. Schnur, CCIM
President and Designated Managing Broker
Integrated Real Estate Solutions
LinkedIn
Looking for new warehouse space? With today’s rising costs, businesses need to take a closer look at the effective use of their warehouse space. Cost and operational efficiency as well as scalability and flexibility drive the value of optimizing industrial space. Here are space optimization ideas to consider and include in your requirements before buying or leasing a new space,
Streamlined Warehouse Layout and Design
- Strategic Floor Plan: Before building a new warehouse or leasing additional space, you should strategically consider layouts and designs that optimize industrial space utilization. What purpose will this space serve – storage of climate-controlled inventory, manufacturing, and assembly, e-commerce operations, cross-docking, distribution, document storage, seasonal storage, or a combination of two or more of these uses? The ideal floor plan should minimize travel time as well as optimize space utilization.
Techniques like zoning, where warehouse designs define zones for separate activities such as receiving, storage, picking, packing, and shipping, can maximize efficiency. A strategic design should also consider flow patterns that reduce bottlenecks.
- Vertical Space Utilization: One advantage of warehouses is the opportunity to use vertical space. Consider employing some of these vertical solutions:
- High Rise Shelving and Racking Systems
- Mezzanines
- Vertical Carousels and Lift Modules (VLMs)
- Pallet Racking
- Overhead Storage
- Compact Storage Systems
- High Bay Warehousing
- Custom Solutions
These solutions not only maximize the use of floor area but also improve the organization and accessibility of your inventory.
- Efficient Aisle Configuration: There are a variety of aisle configurations that can improve the efficiency of your operations. When selecting the configuration best suited to your needs, consider the following factors:
- Product Type: What are the sizes, weights, and turnover rates of your products?
- Picking Method: Do you use batch or zone picking? Do you plan to automate your system?
- Warehouse Size/Shape: What are the physical limitations/advantages of the building?
- Traffic Flow: What kind and number of equipment must navigate the aisles?
- Safety Requirements: What safety regulations govern your operations?
Answering these questions allows you to choose straight or traditional aisles running parallel down the warehouse, a combination of straight and diagonal aisles in fishbone, herringbone, chevron, or serpentine patterns, or grid or radial layouts to optimize the efficiency of your warehouse operations.
Incorporating Technology
Of course, a key component of warehouse productivity is the state-of-the-art technology now available to create efficient and effective warehouse use.
- Warehouse Management Systems (WMS) – These software applications offer real-time data on inventory location and status. Using this information, warehouse managers better manage inventory levels, reducing stockouts and overstock situations. In addition, a WMS can automatically create orders when inventory levels drop below a defined amount.
Additionally, a WMS also positively affects the use of warehouse space. MHI, the largest U.S. materials handling and logistics association, posted an article by member company, Royal 4 Systems, stating “Warehouse management systems enable businesses to effectively utilize warehouse space by optimizing storage and allocation of goods. These systems provide insights into storage capacities, storage types, and inventory characteristics, allowing businesses to optimize storage configurations and maximize space utilization. By effectively utilizing warehouse space, businesses can reduce storage costs, improve inventory organization, and enhance overall warehouse efficiency.”
- Data-Driven Optimization: The development of “Internet of Things” (IoT) sensors has transformed warehouse management and promoted data-driven decision-making. These sensors gather data providing insights into not only the status of inventory, but also the maintenance needs of warehouse equipment, the status of temperature and climate in the building, and the location of equipment and inventory. This data enables managers to evaluate the effectiveness of space utilization.
Utilizing Automation
- Automation Solutions: A discussion of warehouse wonders must include the benefits of automated solutions – conveyor systems, robotic picking, and automated guided vehicles (AGVs). Compactly designed picking systems select items from storage locations, and conveyor systems move the selected items efficiently from one area to another. Robots can assist the picking operations or store and retrieve products from a warehouse. Working together these automation advances optimize space usage by efficiently using available floor and vertical space.
Once you have identified the requirements needed for your new warehouse space, partner with a commercial real estate expert to find the real estate location that fits your requirements. The professionals at Integrated Real Estate Solutions, Inc. offer fixed-fee real estate consulting services that help you find the perfect location for your new space.
Integrated Real Estate Solutions, Inc. provides clients with the in-depth knowledge and experience that is critical to determine the right path to your next move, lease renewal, or strategic repositioning of your real estate portfolio. Contact us or call 847.550.0160 today about your needs and put our success to work for you.
