Many businesses believe that a new warehouse is necessary to keep up with demand. But are you sure that’s the case?
In many situations, enhancing your existing warehouse can be a more cost-effective and efficient solution.
By optimizing layout and processes, you can avoid the expenses and disruptions of building or moving.
Watch the video below to learn how to make the most of your current space.
Are you sure you need to move to a larger warehouse? Many businesses face space issues and immediately assume that a bigger warehouse is the solution. However, at Logistics Bureau, we’ve seen that moving to a larger facility isn’t always necessary. In my 26 years of experience, I’ve noticed that nearly all companies move to larger warehouses due to business growth, but there are often alternatives that can save both time and money.
Inventory: The Usual Suspect
One of the most common reasons companies run out of space is due to holding too much inventory. During the pandemic, many businesses increased their stock levels to manage supply chain uncertainties. Now that things have settled, it’s time to review your inventory levels. Are you holding onto more stock than necessary, particularly slow-moving items? Adjusting your inventory can free up significant space without the need to move to a larger warehouse.
The Importance of Balanced Inventory
It’s not just about the overall level of inventory; it’s about having the right balance. Many companies hold too much of slow-moving products while not having enough of high-demand items. By carefully analyzing your stock, you might find opportunities to better balance your inventory and solve your space issues without relocating.
Maximizing Space Through Layout Optimization
Another area to consider is your warehouse layout. Sometimes, the issue isn’t the amount of space available but how it’s used. For example, we helped a client increase their warehouse capacity by 30% by narrowing aisles and switching to more efficient forklifts. This allowed them to make better use of their existing space without needing to move to a new facility.
Think about whether similar changes could work in your warehouse. Adjusting the layout, adding mezzanines, or reconfiguring storage systems can extend the life of your current facility and delay the need for a larger warehouse.
Improving Picking Processes
Your picking process also plays a significant role in how much space you need. By revising your picking methods or introducing new technologies, you can free up space and improve efficiency. These adjustments can help you get more out of your current warehouse without the need to move.
Before deciding to move to a larger warehouse, take a step back and evaluate all your options. Simple, cost-effective solutions might help you make the most of your current space, saving you time, money, and stress in the long run.
If you’re unsure where to start, we’re here to help. At Logistics Bureau, we specialize in optimizing warehouse operations.
For more insights, be sure to watch the video above.
Related articles on this topic have appeared throughout our website, check them out:
- Are You Sure You’re Out of Warehouse Space?
- 10 Proven Principles for Best Warehouse Design and Operation
- Improve your Warehouse Productivity Through Product Slotting
- Warehouse Product Slotting: The Ultimate Guide
- A Recommended Approach to Warehouse Layout and Operational Design
Editor’s Note: The content of this post was originally published on Logistics Bureau’s website dated August 16, 2023, under the title “Do You Really Need a New Warehouse?“.