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.