Companies that are out of space in their distribution centers face a host of financially undesirable choices. They can expand the current facility and live through the cost and chaos of a construction project. They can move to a larger warehouse – a highly disruptive activity with potential for major cost overruns. They can lease “overflow” space and shuttle product back and forth between the two facilities.
One common factor that all of these alternatives possess is that they almost always drive up the company’s ongoing operational expenses due to a larger investment in either real estate or labor.
There is an alternative to driving up operating expenses. Creative space utilization techniques can delay or eliminate the need to expand, move, or setup satellite facilities. This new blog series will be dedicated to six space-saving concepts that have been used by companies in a variety of industries, with success:
Six Strategies to Postpone Distribution Center Expansion:
1. Re-slot the distribution center
2. Optimize storage depth
3. Reduce aisle widths
4. Use overhead dock space
5. Use Automated Storage & Retrieval Systems (AS/RS)
6. Consider medium-density parts storage
Over the coming weeks in a series of six more blogs, I will be writing about each one of these concepts in detail. You’ll learn when and how to apply these techniques and the technologies and equipment that can be leveraged. Can’t wait? Read the Whitepaper: Six Ways to Postpone -Or Avoid- DC Expansion or watch the recorded webinar.