Common Methods to Improve Warehouse Space Utilization

Nov 10,2023
Industry News
Improve Warehouse Space Utilization
Many companies suffer from low utilization of warehouse space and chaotic storage of goods, resulting in low warehouse efficiency and high rental costs. How should these problems be solved?

In today's fiercely competitive market environment, companies need to continuously improve their operational efficiency and reduce costs in order to gain an advantage in the competition. As the warehouse is an important link in the enterprise logistics chain, improving its space utilization is crucial to the operation of the entire enterprise.

However, in reality, many companies have low warehouse space utilization and many problems. For example, unreasonable warehouse layout, chaotic storage of goods, serious inventory backlog, etc. These problems have led to low operating efficiency of the warehouse, and also increased the rental cost, equipment purchase cost, labor cost, etc. of the warehouse.

If warehouse space utilization is low, companies need to rent larger warehouses or increase the number of warehouses to meet demand, which will lead to a significant increase in warehouse rental costs.

Some common methods to improve warehouse space utilization

Classified storage and layout optimization of goods

Classifying and storing goods according to variety, specification, production date, etc. can avoid problems such as mixed storage and random placement, and improve the space utilization of the warehouse. And according to the attributes, size, weight and other factors of the goods, the storage location and layout of the goods can be reasonably arranged to maximize the use of warehouse space and reduce space waste.

Use shelves, containers and pallets

The use of shelves can store goods in layers. Containers and pallets can load, unload and transport goods quickly and conveniently, reducing the consumption of manpower and time, thus reducing space occupation and improving the space utilization of the warehouse.

Establish an efficient logistics system and advanced warehousing management system

Improve Warehouse Space Utilization

By establishing an efficient logistics system, the transportation, loading, unloading, sorting and other processes of goods can be optimized, reducing the residence time of goods in the warehouse, thereby reducing space occupation. The warehouse management system can realize digital and intelligent management of the warehouse and improve the space utilization and operational efficiency of the warehouse.

Utilization of vertical space

By using high-rise shelves and increasing the height of the warehouse, the storage capacity of the warehouse can be increased, thereby improving space utilization.

Aisle width planning and location integration

Reasonably plan the aisle width in the warehouse and integrate different areas or locations in the warehouse. Plan the aisles in the warehouse to reduce the difficulty and frequency of people and vehicles, while ensuring the passage needs of people and vehicles. , but also to reduce the occupied area of the aisle as much as possible, thereby improving space utilization.

Improve the utilization rate of the picking slot cube

optimize the picking path and process, reduce repeated walking and invalid time, improve picking efficiency, thereby reducing the waste of warehouse space.

Storage of excess inventory off-site

Store excess inventory off-site to reduce storage pressure in the warehouse and improve space utilization.


By concentrating the goods of multiple customers in one warehouse for management and distribution through delivery, the warehouse space can be reduced and space utilization improved.


By realizing cross-docking between different modes of transportation in the warehouse, the residence time of goods in the warehouse is reduced, the liquidity of the warehouse is improved, and the space occupied is reduced.

Make full use of warehouse buildings

Ensure the integrity of warehouse buildings and prevent wasted space due to construction problems. For example, ensure that the warehouse roof, walls, doors, windows and other structures are intact to avoid problems such as rain and air leakage.

Storage depth

Reasonably plan the storage depth of goods to avoid the problem of excessive depth making it difficult to remove goods stored later. Storage depth can be increased by increasing the number of shelves and using electric forklifts.

Supply Storage

By anticipating demand and stocking in advance, large inventories at the point of sale can be reduced, thereby reducing the need for warehouse space.

Regularly clean the warehouse

Regularly cleaning up useless items, damaged items, etc. in the warehouse can prevent useless items from occupying effective space and improve space utilization.

Reasonably arrange employee working hours

According to the work needs of the warehouse, reasonable arrangement of employee working hours can reduce employee fatigue and ineffective working time, and improve work efficiency and space utilization.

These methods can be used alone or in combination to improve warehouse space utilization and improve warehouse operational efficiency and management levels.

Improving warehouse space utilization is very necessary for enterprises. By optimizing the warehouse layout, cargo storage methods, and adopting advanced warehouse management systems and technical means, the space utilization of the warehouse can be improved, the cost pressure of the enterprise can be reduced, and the operational efficiency and market competitiveness can be improved.