Supply Chain Trends

4 tips to increase your warehouse capacity

Written by
Jonathan Porter
Dec 15, 2021
6:20 am
minute read

These past few years have seen quite a shift in business production and supply chain management. Companies have had to put on their thinking caps and devise new ways to understand and meet their needs. One need that has become readily apparent has been to increase warehouse capacity. 

With more consumers shopping online or running back out to their much-missed brick-and-mortar shops, companies need larger warehouses to store more goods. 

So what’s the problem, right? 

While typically regarded as a positive, increasing warehouse capacity can be the beginning of a real headache if not carried out correctly. Much more goes into simply growing the business. 

Analyzing Your Purpose

There is a general sense that increasing warehouse capacity means to size up and ship out a higher volume. While this may be true on a surface level, knowing your exact purpose is important to ensure your warehouse is running efficiently, both structurally and financially. 

Is there a direct purpose behind your expansion? Is it because your market is growing and you want to keep up with demand? Perhaps it may be because you have had a shift in your product offerings and require more space? Does the purpose connect to worker safety or efficiency in your WMS? 

The list goes on. Getting clear on this purpose first will assist in executing this increase in warehouse capacity to its best degree. 

4 Tips to Effectively Increase Warehouse Capacity

After understanding your greater purpose for this change, there are a few aspects you can look at to ensure an effective reception of your increased space. 

Given that there are many roles and systems impacted by increasing your capacity, it is important to conduct an impact analysis before jumping in. 

1. How will your inventory be managed?

Increased warehouse capacity means an increase in product, whether variations of product or simply higher volumes. 

It is exceptionally important, before setting forward, to plan how this increased inventory will be managed. What software updates might your systems need? Will you need to do any hiring?

Will you need to scale up your technology that was working great in your previous warehouse space, but not so much in the new space? These are all valid and important questions to ask.

2. Pre-plan your layout 

Ensuring your increased warehouse capacity considers the best layout for production is key. 

This not only ensures the safety of your workers but also takes into account the efficiency of your workplace. Creating a layout that emphasizes productivity can reduce the time it takes to deliver that product to the customer. 

3. How will you use technology?

After considering what technologies you utilize in your current warehouse system, how will you alter, expand or limit these moving into your new space?

This should be taken into account before moving into the space to enable its effective transition. Will it require new programming? Will its use depend on the layout you design? 

4. What will your retrieval system look like?

To maximize the use of space in your warehouse, you need to know what the process looks like from retrieval to delivery. Are there steps in between to check for quality assurance? Are there staff members moving, or will it be technology that retrieves products? Is labeling something done in a warehouse? Asking all of these questions about retrieval processes ensures an effective transition when increasing warehouse capacity because it is the check that nothing will get lost in transit. 

Maximize Space, Maximize Profit

A major benefit to your expansion will be the expanded profit margin for your business. You have more space to offer more to your customers. However, this profit could all go awry if the expansion is not carried out thoughtfully and with intention. Utilizing these tips will ensure nothing slips through the cracks!

Do you have upcoming areas of expansion for your company’s warehousing? Do you want more tips on how to ensure your changes are thorough and intentional? PorterLogic assists in optimizing your supply chain systems, so you don’t have to stress.

Want the latest supply chain insights? When you subscribe to PorterLogic’s newsletter, you’ll get a bimonthly analysis and rundown of the supply chain’s latest trends and challenges in your inbox. 

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