Storage Density Helps Distribution Centers Reduce Costs
Storage density is key to any distribution center that wants to stay current with the times. Whether they want to achieve their desired storage quotas by narrowing their aisles in a selective system or switching to a high density system distribution managers across the globe are doing what they can to cost effectively reduce their footprint. As areas become more populous the cost of space in that area increases. By reducing the amount of space necessary for an operation, company owners can greatly reduce their costs. When companies have to lease more space they add a residual increase to their cost of business. With increasing costs of space this has caused a great amount of innovation in the willingness to upgrade infrastructure to reduce the need for new space.
The first step to reduce the amount of space needed to operate takes place during the build out stage of new companies creating distribution centers. With the advent of new reach truck and turret truck technologies, forklifts can now access materials stored at higher levels than ever before. Storing more material vertically decreases the need for companies to sprawl over a larger footprint. In a trickle-down effect, contractors have started constructing their buildings with ever increasing ceiling heights. New high bay systems allow for product to be stored in excess of 30ft in height. An alternative benefit to this high density system is the reduced need to travel to access the product. By putting more product in the same space you increase the amount of product that can be accessed in that space. The more horizontal sprawl you have the greater operators must travel to cover the total area of the inventory.
Along with increased ceiling heights there have been a number of innovations in how racking systems are designed to hold more product. One of the biggest factors in decreasing the amount of horizontal space needed to run an operation is the reduction in the number of aisles one has in the facility. Aisles equal dead space in the world of material handling and storage. High density rack systems decrease the need for aisles by allowing access within the rack system or a gravity fed system that carries the product to the nearest access point. One example of this is flow racking which uses rollers at a downward angle to store pallets of material. In this fashion pallets of materials can be stored in rows without aisles. When a pallet is removed from the system the next in line rolls down into its place. Not only does this system provide high density storage but it allows for great product rotation as well. Pushback systems work in a similar fashion, but they load and unload from the same side. This allows for slightly greater product density as only one aisle is needed, but the product rotation is not as good. The last pallet to enter the system is the first one to leave, meaning there could be product in the back not being rotated. While these are not the only forms of high density racking they are two of the best examples of how facility operators are reducing the amount of horizontal space they need to store their product.
By combining great vertical utilization and high density rack systems manufacturing and distribution facilities can greatly reduce the amount of horizontal space they need to run their operations while at the same time increasing their efficiency. Reducing the space requirements of a facility not only decreases the operating cost by lessening the amount of space leased or purchased, it decreases the amount of space that operators within the facility must cover to do their jobs. This could lead to a tremendous savings in regards to personnel requirements as the same number of people can cover a greater volume of product. Innovations are taking place on a daily basis to combat the need for more space. Where there is a will, there is a way and there is always a will to reduce the cost of business.
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