Optimum space utilization for effective Warehouse design

December 15, 2017

(Please feel free to watch our video instead of reading)


The success-key of any business is the utilization of available resources effectively and efficiently.  Likewise, when it comes to warehouse management, effective and efficient utilization of available space brings more value to the business. How to design a warehouse by keeping optimum space for different  warehousing is very important here.


Calculating the space might be easy. But calculating the optimum space could be not that easy since it requires dedicated plan and effort. The survey says that many warehouses did not follow space optimization techniques that resulted keeping least more than 20% of their warehouse space vacant. To be more specific, they can't be able to use nearly 20% of their warehouse space for any kind of activities. During the calculation of warehouse space, there are many points to be considered in terms of upcoming inventory types and sizes, successful space calculation methods, recent trends etc. The space could be able to make affects on cost, efficiency and productivity directly. So, maximizing space utilization is becoming very critical these days than ever before. 


The survey says that many warehouses do not follow better space optimization techniques that results in around 20% of their warehouse space vacant. During the calculation of warehouse space, there are many points to be considered in terms of upcoming inventory types and sizes, successful space calculation methods, recent trends etc. The space could be able to make affects on cost, efficiency and productivity directly. So, maximizing space utilization is becoming very critical these days than ever before.


Before designing the entire warehouse, make sure of these things to be calculated in the order.


1.Size of your entire Warehouse

2.Different sizes of expected Inventory Cubes to come

3.Total space in the Warehouse dedicated for storage

4.Evaluate all these points and design Warehouse Utilization Space




1. Size of your entire Warehouse 


This is just an initial calculation to find the maximum size of a warehouse. This calculation gives a clear picture of how much space we can use within the warehouse that includes storage, walkways, employee rooms if any, refreshment rooms if any and as such. Either walkways and storage as the first thing to calculate, or essentials rooms as the first thing to calculate, might be completely up to the person who design. But, to be in short, this should be carefully analyzed and decided otherwise, either essentials or storage may not get enough space as expected. 




2. Different sizes of expected Inventory Cubes to come


This is actually just an analysis of packaging trends. The is must in order to understand the expected inventory sizes and shapes to come to the warehouse for the storage. There are designs keep more important to the larger racks where they can store small, medium and big sizes irrespective. But, comparing the effort and easiness, a good designer definitely supports almost corresponding sizes of racks to be present, that saves a lot of time while picking.  The larger racks to store all sizes might be selected only when there are houseful of corresponding racks but at the same time, there are spaces in the larger racks. So, expected inventory pack sizes usually calculate for making sure of the effective warehouse design.



3. Total space in the Warehouse dedicated for storage 


Here, the designer consider each and every things to be essentially present within the warehouse, except storage racks. This includes official rooms, refreshment areas etc. The challenging aspect of this is to how a designer includes these in the plan. All that the designer has in hand is nothing, but the must-required spaces for each rooms in this category. The list of essentials areas other than racks and walkways are prepared here, along with the essential area sizes.



4. Evaluate all these points and design Warehouse Utilization Space


This aspect considers all the above points to finalize a design. And for sure, this is where a designer can prove his talent. The brilliance in this level boosts the effectiveness of a warehouse and thereby overall profit. So, this level usually go for different versions of design and finalizes only after a bunch of discussions. Here, the designer first compares above 3 points and start thinking in the aspect of storage. How many racks in different sizes and shapes can be included within the available space of a warehouse is the first priority, provided walk-ways to reach each and every corner of the racks.

The main things to consider while designing the walk-ways is how easily a 'pick' can reach the exit of the warehouse, without travelling the whole way it has traveled within the warehouse. Because, travelling to and fro through the same path seems fine if it is a 'single pick'. But, in most cases, 'batch pick' is necessary where the picking happens at different locations of the warehouses and thus, it is difficult to travel the whole way back in order to reach the exit. The warehouse might have already built with many exits but how easily a 'pick' can connect at the nearest exit is the point here. These blogs gives you an idea of how the 'pick and pack' is happening effectively in a warehouse.

Blog 1 : Effective "Pick" techniques in a Warehouse

Blog 2 : Role of effective "Pick & Pack" in 3P Logistics

Blog 3 : The "Warehouse Location Numbering" System!

Once everything is set on design in terms of storage racks and effective walk-ways, the next thing is to find the remaining spaces for the other essential rooms. A talented designer utilizes each and every space within the warehouse and no one can find a space that is left unused. The most effective space calculation bring the best always. 

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