One of our Canadian clients was out of room in their existing raw material storage and finished goods warehouse and called us to help them with their required expansion. They were convinced that they had to increase the foot print of their warehouse to handle their increased space demands. We looked at all options to see if we could come up with a plan to increase pallets in both areas along with increasing throughput and not expand the warehouse footprint.
As a result of our preliminary study, we were also tasked with outlining the proposed changes, budgeting the cost and determine how long this fix would last before an expansion was needed. The existing storage areas consisted on push back rack, floor stock and pallet rack.
The first thing we looked at was the existing floor stock to see if we could increase the number of pallets in storage by utilizing some type of racking. There were some existing products options available. Due to the type of SKUs, they had large numbers of pallets to inventory. These SKUs would only stack so high before they started crushing cases on the bottom pallet.
We optimized their available space by selecting a full pallet flow system for these items. This allowed us to move from two high storage to four high storage. We also reaped the additional benefit of forcing rotation with full pallet flow. We would feed from the back and pick from the front.
We also selected a push back rack system for other SKU’s that were too low on pallet counts to fit the full pallet flow area. We placed a rack into every open space available and were able to increase pallets to storage by 2,700 which was a 30% increase.
Based on their projected sales we estimated we could keep them in the existing space for at lease 5 years before we had to build an expansion.
This company was convinced that there was no way to meet their short term growth in the existing space. By optimizing their raw material storage and finished goods warehouse, we were able to get them 5 more years in the existing space.