Storage density

Warehouse capacity utilizationis defined as a metric that provides information on the ratio of occupied storage space to the total available storage capacity. Ideally, this value would be 100%, but in reality, this is rarely achieved. Instead, there are often parts of the warehouse that remain unused meaning low storage density and warehouse utilisation rates. These areas could in theory be used productively in other ways. In practice, they often tie up capital. The same applies to goods that remain in the warehouse for an unexpectedly long period of time.

On the other hand, problems also arise when the maximum defined warehouse utilisation rate is exceeded. In such cases, the warehouse quickly becomes a bottleneck and often affects the entire supply chain of a company.

In this context, a precise bearing of dimensions of the warehouse in conjunction with the appropriate storage and conveying technologies and systematic inventory management should be installed before implementation. As a rule of thumb, the warehouse should be as small as possible and as large as necessary.

While this is not a big challenge for new buildings, it becomes more difficult for existing warehouses. Compact storage systems, which can be integrated into existing spaces, such as replacing narrow or wide aisle rack systems, are recommended as solutions. In combination with intelligent software optimal capacity utilization ratios of the warehouse can be achieved.