Best Solution to Build a Steel Structure Warehouse Factory

One of the biggest challenges a logistics manager faces is how to build Steel structure warehouse factory. The increase in prices in the real estate market makes it impossible, in many cases in economic terms, to expand as a solution for a small warehouse. However, sometimes, the progressive lack of space hides inefficient management.

In our article, we analyze the frequent causes that generate lack of space in steel warehouse. Moreover, we propose options to take advantage of the available surface and continue to manage a warehouse that has become too small.

The signs of a steel structure warehouse factory

We highlight some of the signs that indicate that the small warehouse is approaching its space limit:

Having more than 85 – 90% of the total storage capacity occupied continuously. Talking about the warehouse being full is often a double-edged sword. While from a storage cost perspective, the ultimate goal is to make the most of facilities.

Similarly, this can also reduce flexibility in your operations. At this level of occupancy, the warehouse will not be able to react to a slight increase in inventory.

There are incidents in the management of references

They can occur because a type of racking, a specific reference is overflowing. Similarly, we cans ay that other areas of the steel structure warehouse factory are being used as improvised permanent storage space (aisle, preloads, maintenance area, among others).

Constantly increasing the number of backlog or backorders

These are orders that the warehouse has received but cannot be fulfilled due to stock mismatches. This affects the shipment fulfillment rate and increases internal product cycle times.

Causes of lack of space in the warehouse

The factors that affect a small warehouse can vary. The most frequent are often linked to commercial changes, such as:

• a sales boom
• international expansion
• Greater acquisition of goods for commercial purposes.

However, lack of storage space can also due to the emergence of new digital business models. If your steel structure warehouse factory starts managing orders online and adopts an omnichannel model, the warehouse will have to adapt. Furthermore, it reserves extra space for more complex picking and intensive returns management.

What if it’s not just a matter of square feet?

Poor facility management can also harm a small warehouse. In this sense, we highlight two of the most common causes:

Poorly distributed space or outdated warehouse layout: Warehouses are usually designed considering specific flows of goods, a certain number of SKUs or references with certain characteristics. However, with increasingly volatile supply chains and demanding service levels, change may come sooner than expected.

The result is that the distribution of steel structure warehouse factory space becomes outdated as the market moves faster than the physical infrastructure itself.

Excessive inventory of goods handling in steel structure warehouse

it is common for companies to prioritize products with the highest turnover in their purchasing policies. However, the effervescence of sales of A products (high turnover) can harm the warehouse if the space reserved for them is not optimized.

It is also possible that the opposite occurs: excess merchandise with little turnover due to oversized safety stocks or because the sales forecast has deviated.

So, if expanding or moving to a larger warehouse isn’t an option, how can we get more out of the gauges we have?

Redesign the steel structure warehouse factory floor plan

Organizing the plan of a small warehouse is a job of pure precision. The first step in designing a warehouse layout is to accurately measure the actual available workspace.

Steel structure warehouse factory can subtract the area occupied by architectural elements such as:

• Columns
• walls
• doors

1. What products are moving (number of SKUs, volume, and weight)?
2. Where they are moving in the facility, and how often in and out flows from warehouse?

Evaluate alternatives to articulate the space

This study is necessary to evaluate alternatives. It is good to manage to articulate the space available in a warehouse with reduced dimensions. A solution that gives very good results is to automate part of the operation. It records the highest number of repetitions and remains stable over time.

In this sense, automatic systems such as mini loads or stacker cranes for pallets make it possible to concentrate references and eliminate the space dedicated to aisles. For example, Prefab steel designed an automated steel structure warehouse factory.

Evaluate other alternative storage systems

Increasing the storage density by adjusting the type of racking is another option that solves the fact that the warehouse is small in terms of the number of cycles. Conventional pallet trucks have great advantages in terms of accessibility to goods, but achieve a lower storage density than compact storage systems.

Today, there is a wide variety of compact racks, whether dynamic or standard systems, which allow you to operate with different levels of goods handling. Furthermore, as we see in the case of the steel structure warehouse factory, its combination with the Pallet Shuttle means that warehouse productivity is not affected.

Improve inventory management with a WMS

A small warehouse can be very complex from an inventory management point of view, in the same way that a warehouse can become very small due to poor inventory management. Warehouse management software is essential for solving both situations and getting the most out of your storage capacity.

A warehouse management system like Easy WMS organizes goods movements and records data in real time. How does this help optimize storage capacity?

Adjust Inventory Location Criteria: This software is essential for effective space management. Only with it, for example, it is possible to implement a random storage system that limits empty spaces as much as possible.

In this way, the effective capacity of the steel structure warehouse factory is increased while maintaining agility in operations, since the WMS optimally organizes the operators’ workflows.

The challenge of living with a lack of storage space

Internationalization and new consumer habits have created complex supply chains that require more storage space at all levels. Future prospects indicate that this trend will continue and it will be normal for the warehouse to get small from time to time.

If you have noticed that your warehouse is having more and more difficulties in efficiently responding to space needs, contact us, we will analyze your situation and help you to optimize the steel structure warehouse factory.