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Off-Site Storage

Rick,
We have a pretty good handle on the status of our existing inventory and have done a good job with slotting, the overall management of space allocation per SKU and managing the rotation of stock in the warehouse. From time to time we are still pressed for additional space. Could you offer some ideas for us to consider that might prevent us from having to use off-site storage?

Marvin, Operations Mgr, Jacksonville, FL

Rick's Answer

Marvin,
From time to time off-site storage can provide a great benefit, however that benefit does come at a cost and you do not typically want to become dependent on it as it often can become a dumping ground and eventually an accepted part of the business. This is a good question because it sounds like you may already recognize a potential pitfall and are now trying to prevent heading in that direction. Based on where you find yourself, some things to consider include examining space in the warehouse not being used to store the products you distribute. Look in the air for unused space; reclaim space in the aisles and think about automation. Here are some suggestions on how you might go about evaluating each of these areas.

Let's start with some possible short term options.

• Take a close look at where and how you are currently managing things like pallets, warehouse supplies and maintenance items. If you are using space that could be used for storing product, consider looking for other areas in the warehouse where you may be able to relocate these items. Use other space that is not as practical for storing the product you are distributing.
• Identify any areas in the warehouse that are not currently being used to store product that could become candidates for new storage space. Options to consider include:
• Battery charging stations and areas on the dock door walls. Look in the air above these areas and if you find unused space consider adding racking or storage units to the walls so this space can be leveraged. This space may not be ideal for storing the product you distribute, however it could be ideal for storing other materials and supplies.
• Designated maintenance areas in the warehouse. Again, look in the air above these areas as they may be prime candidates for adding a mezzanine which, depending on the size of the area, can enable a significant amount of storage.
• If not already being used, the bulkheads at the end of the aisles can be opened up for storage on an as needed basis. This could be done by defining floor locations or possibly adding some racking at the bulkhead to enable multiple levels of storage.
• While certainly not ideal and not something you want to do on a permanent basis, being able to open up floor space in the aisles can also give some relief but again, you do not want to do this long term if you can avoid it.
• Now let's consider some longer term options.
• If you have areas of the warehouse where the existing storage units leave open space in the air above, consider adding a mezzanine to enable use of the space.
• Examine the width of your aisles in the warehouse and consider reclaiming some of that space. In some cases, you may be able to narrow the aisles and continue using your existing equipment to work in those areas and claim back a reasonable amount of space. A more aggressive consideration would be to narrow your aisles and acquire narrow aisle trucks that can effectively operate in a narrow aisle environment. In doing this you will likely also want to incorporate the use of 'Pick-up and Delivery Stations / Drop Points'. This approach can reclaim a tremendous amount of warehouse space in some environments.
• In some operations, it may also be prudent to evaluate the incorporation of conveyors, carousels and automated storage and retrieval systems (ASRS).

Marvin, I hope you can find application for some of these things to help with your current situation. At times the use of off-site storage can be the right solution. At some point in a growing business most distributors will also be faced with the need to add more space. When that time arrives it is a matter of considering an addition to the existing structure, leasing additional space in the same building or industrial area, adding another warehouse or possibly looking at other outsourced options. Thanks for your question.

Rick Register, industry veteran and President & COO of Cambar Solutions, welcomes your questions.

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