A guide to evaluating space utilization in material handling

2.15.19

10 MIN READ

Maximizing space utilization is more critical than ever before; lean methodologies, cost-effectiveness, increased efficiency, and productivity are key drivers of operational improvement in material handling. Warehouse space often represents 15% to 20% of the cost per order and moving to new space is expensive and time-consuming. Follow the subsequent steps to calculate warehouse volume capacity and take the action to assign someone responsible for ongoing analysis.

Step 1: Calculate Warehouse Space Utilization for Material Handling

The optimal range of space utilization ratio is between 22%-27%. However, with automation, it’s possible to achieve higher densities. Use the steps to determine your current ratio.

Find the total available square footage by SUBTRACTING the square footage of all offices, restrooms, and other non-storage areas.

Determine the overhead height by ADDING the height of all steel beams, suspended lighting, overhead fans, or other mechanical equipment (also on blueprint)

Calculate the warehouse available storage capacity (WASC) by MULTIPLYING available square footage x overhead height.

Calculate the Warehouse Storage Cube (WSC) by MULTIPLYING the width and length of racks times the height the inventory that’s stored. Tip: Look at the Blueprint for rack size and/or measure the racks.

Calculate warehouse space utilization by DIVIDING your WSC by your WASC :

Step 2: Identify Areas of Material Handling Improvement

Check all that apply:

Do you use Vertical Space (Check with sprinkler design and fire code.)
Are you utilizing your department space correctly? (Ex: move activities that don’t require high overhead ceiling height into areas with low ceilings.)
Are inventories consolidated by type (Consider implementing a dedicated put-away process.)
Do you match item sizes with accurately sized slots
Do you use drop-shipping when storing and shipping large items
Are you cross docking
are you using the entire depth of your storage (Review not only the effective use of the height of locations and/or consider double-depth racking.)
Are your shipping and receiving docks separate? (Consider combining shipping and receiving docks to save space.)
Do you have a mezzanine? (Consider installing a mezzanine to house functions that do not require high-bay storage.)
Reduce Inventory (Re-locate items that are not being sold at the anticipated velocity.)

How Automation can Help

Automation can increase the volume capacity by increasing the density of how totes/pallets are stored inside a facility, and some automation systems allow for new options in space utilization. For example, aisles may not require forklift-width or human-width sizing, as robotics and automation would pull cases from out behind others (depending on the system); thereby increasing the storage density. Automation can both be implemented in formerly human-centered storage spaces, or portions of existing facilities can be allocated to flexible robotic storage systems and AS/RS systems.

Want to know more?

Learn about Vecna Robotics’ entire fleet of self-driving vehicles from our Automated Material Handling and Hybrid Fulfillment brochures. Vecna will be displaying a wide range of vehicles, including its autonomous Tugger and Pallet Jack at booth #S4583. We’ll be showcasing our Automated Material Handling, Hybrid Fulfillment, and Workflow Optimization solutions, along with the self-driving vehicles and technology that fuels them.

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A guide to evaluating space utilization in material handling

10 MIN READ

Step 1: Calculate Warehouse Space Utilization for Material Handling

Step 2: Identify Areas of Material Handling Improvement

How Automation can Help

Want to know more?

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