Every business which requires industrial-level storage faces some of the same challenges. Namely, how to store more, handle stock efficiently, while also remaining cost-effective. It’s not easy to make the right call, but achieving a good balance can be achieved when both the current needs and future demand have been factored in.
Crucially, selecting the right storage system is more than finding somewhere to put stock. Instead, it represents a strategic decision that will influence your operating costs, productivity, compliance and future scalability.
If your business is currently trying to choose the right storage solution for a warehouse, then the experts here at Logical Storage Solutions can offer you tailored advice.
In the meantime, here are our top tips on selecting the best storage solution when there’s also a need to balance cost and capacity.
Warehouse Storage: Where Cost & Capacity Intersect
Every business has to consider what’s important versus how much it will cost to achieve. In a warehouse, storage upgrades can include the likes of additional shelving, pallet racking, or mezzanine expansion.
The upfront cost of these measures includes the installation, maintenance and operating costs.
To justify these costs, warehouse businesses need to ask the following questions:
- How much more stock can be stored?
- How well is it protected?
- How easily can it be accessed?
- Will it enable growth and expansion?
For a solution to be successful, it must maximise both performance and affordability. Making the right decision should be a process that outlines inventory types, analyses throughput, evaluates congestion, compares costs over the total lifecycle and considers future operational needs.
Choosing A Storage System: Practical Considerations
As we’ve just touched upon, to be able to decide if the cost of storage is justified (or if you need to opt for a modest solution), it’s important to consider the requirements of the warehouse itself.
For storage and distribution, these requirements can be summarised as follows.
Storage Volume vs Available Floor Space
When floor space is tight, high density systems like narrow aisle racking, push back racking, pallet shuttle systems, or mezzanines can hold more stock per m².
However, high density storage often costs more upfront. Low density systems are cheaper but occupy greater space. Therefore, businesses must decide whether space utilisation or initial investment is the priority.
Inventory Type & Movement Speed
Product and picking patterns are two of the most influential factors when choosing a storage solution.
If stock moves often, suitable solutions include wide-aisle racking, carton flow shelving or open-front shelving. That’s because these solutions optimise access and picking speed.
But, if stock will be sitting there for a long time, slow access solutions (which cost less) are acceptable. This may include drive-in racking, static shelving and multi-tier storage.
Handling Equipment Requirements
Sometimes a slightly lower density option is more cost efficient because it factors in existing forklifts or handling equipment.
Costs rise when storage requires specialised handling tools, such as very narrow aisle trucks, shuttle units or automated stacking systems.
Labour Cost Implications
Storage choice also directly affects labour efficiency. A cheaper system can become more expensive in the long run if items take longer to retrieve, aisles become congested, multiple handling steps occur or items are repeatedly relocated.
For these busier warehouses, systems designed for fast access often pay for themselves soon enough.
Potential For Future Growth
It’s certainly the case that not having the best storage solution to meet the needs of your warehouse can impact your business’s ability to scale.
Instead, a smart decision factors in any expansion plans. Also, aspects such as seasonality, SKU diversification and any space needed for future automation.
So while a modular system may cost more now, it avoids having to spend money on redesigns down the track.
When A Low-Cost Solution Makes Sense
If you were to approach Logical Storage Solutions in need of a cost-effective storage solution for a warehouse, we may suggest standard pallet racking or shelving bays.
This might be because your warehouse primarily caters to small stock volumes, low item turnover or few SKU variations. Additionally, your warehouse premises may only be acquired on a short term basis.
Overall, a cheaper solution is going to be the best fit if it works for your specific needs. This is when there are no plans to expand, meaning opting for a more expensive system would not deliver a return on your investment.
When High Capacity Justifies Higher Cost
For some warehousing operations, maximising storage efficiency is a cost that is absolutely justifiable. This includes having high throughput operations, rapid business growth and a large SKU range. Additionally, if space has become limited, this may be impacting the ability of the business to expand.
Our team can also help with the possible solutions, including narrow aisle systems, mobile racking, push back systems, mezzanine floors or semi-automated shuttles.
In short, investing in these high capacity storage measures makes sense when rapid expansion is needed and without delay. Since the business is growing and demand is anticipated to increase, it would actually cost the business more to not invest in the vital storage infrastructure it needs.
Good to know: If you can relate to this scenario within your own warehousing facility, you may be interested in our various case studies.
Maximise Efficiency In Your Warehouse With Logical Storage Solutions
Do you own a warehouse space in the UK? If you are looking for intuitive ways to maximise your storage, then you’re in the right place.
Local Storage Solutions is proud to be the UK’s leading provider of warehouse storage solutions. There are lots of ways we can support your warehouse, with some of our key services including warehouse refurbishment, industrial shelving and pallet racking.
Details of all our services can be found on our website. But, if you need any further help please
send us a message or give us a call on 0845 689 1300.