Warehouses run out of space for specific reasons, ranging from business growth to operational inefficiencies to unexpected circumstances. An increase in inventory due to seasonal demands or an increase in safety stock can consume available space. Often, companies add new products to their offering mix, which can increase SKUs and take up more storage space.
Poor warehouse layout, inefficient picking processes, and misplaced inventory can limit usable warehouse space. Inadequate planning for future growth or seasonal fluctuations can result in capacity issues. Failing to use vertical space with multi-level racks or mezzanines can lead to space shortages.
Unforeseen events can disrupt supply chains, leading to excess inventory as businesses stockpile to manage uncertainty and meet customer service levels. Inaccurate demand forecasting can lead to excess stock. Inadequate inventory tracking causes excess or outdated stock to accumulate. Often, obsolete products still occupy storage space in the warehouse.
What can you do if your warehouse runs out of space?
Your best alternative is to work with an experienced third-party logistics partner like Nexterus, who has expertise in inventory management, seasonality, and warehousing. Here’s how Nexterus can manage your warehousing processes and help you find more warehouse space:
- Inventory Optimization: Review inventory to identify slow-moving or obsolete items that can be removed from the warehouse. Examine safety stock levels to see what can be reduced without impacting service levels. Analyze sales trends and inventory turnover to better forecast and manage stock levels.
- Improve Warehouse Layout: Use high-density shelving or vertical units to maximize warehouse space. Many warehouses have 30 feet or more of vertical storage that can be used with the right shelving and equipment. Narrow aisles can increase storage capacity, but you must use specific equipment to maneuver in tight spaces.
- Streamline picking processes to optimize pick paths and reduce space.
- Warehouse Management Systems (WMS) can optimize inventory placement, picking routes, and overall warehouse efficiency.
- For certain products, consider drop shipping, where items are shipped directly from the supplier to the customer, bypassing your warehouse.
- Adjust Business Processes:
- Consolidate Shipments: Combine smaller shipments into larger ones to reduce the frequency of incoming deliveries.
- Implement Cross-Docking: Cross-docking involves unloading goods from an incoming truck and loading them directly onto outbound transport, reducing storage time in the warehouse.
- Review Order Frequency and Volume: Adjust ordering patterns to align with storage capacity.
Some shippers are shifting to just-in-time processes where materials and goods are ordered and received as needed, reducing excess inventory. You can also rent additional warehouse space, use temporary storage containers, or add to your existing warehouse.
Nexterus can help you find additional warehouse space, too. We use an online platform that helps us search for suitable warehouse space at the right location for your business. Our online marketplace searches over 2500 properties to find the right one for you. If your warehouse is running out of space, contact Nexterus today so that we can help you find space within existing properties or if you need a new location.
