“Store inventory smarter, not bigger.”

Maybe you’ve recently heard something similar to this sentiment about improving operations in your distribution operations.

They might be asking you to upgrade or increase inventory space or reserve space — but don’t count on extra money to do it.

Of course, there is no one best way to store inventory.

The best system considers many factors:

• what you’ll be handling
• how you’re expected to move it
• your existing facility capacity
• staffing
• money available, and
• expected ROI

There are five basic racking systems. Each has its own advantages and disadvantages.

• Single deep racks — Most popular and widely used. Advantage: accessibility. Disadvantage: less storage density.
• Double deep racks — Two back-to-back racks that are two pallets deep. Advantage: increased storage density. Disadvantage: “Honeycombing” possible if there are varying SKUs.
• Drive in/Drive through racks — Advantage: High density storage that can eliminate “dead” space. Disadvantage: First in/last out set-up makes stock rotation difficult.
• Pallet flow racks — Advantages: First in/first out; high density, easier to maintain. Disadvantage: Steeper pricing.
• Mobile racks — Advantages: Good for especially tight storage areas; needs only a single aisle.

Tags: distribution center, inventory, SKU, storage, supply chain