Small warehouse space optimization increases the amount of usable space you get from your storage area. With a strategic layout and deliberate operations, you can remain in your small warehouse space longer as you grow your business.

1. Calculate Your Current Space Utilization to Know Exactly How You Use Your Space

How do you use the small warehouse space currently? Calculating current space usage gives you a starting point for finding extra room for storage and working.

How to Calculate Your Current Space Utilization

  1. Find the cubic footage by multiplying the square footage of your warehouse by the clearance height.
  2. Next, determine the potential storage space by multiplying the length, width, and height of your racking.
  3. Divide the potential space by the cubic volume of the warehouse to calculate the percentage of usable space you have. Aim for storage space of no more than 27% of your total volume. This storage use ensures that you will have enough space to move between aisles, get pallets off racks, and place working and packing stations in your warehouse.

2. Use Containers That Fit Stored Items to Find Extra Space

To maximize your warehouse space, use containers that fit the dimensions of your stored items precisely. Avoid containers with excess space, as they waste valuable storage capacity. By matching container sizes to the exact volume of your products, you can optimize storage efficiency and make the most of every inch of your warehouse.

3. Follow the Pareto Principle to Use Your Space Effectively

The Pareto Principle also goes by the term the 80-20 rule. It stems from the financial world in which 80% of results happen from 20% of causes. In warehousing, this means that 80% of your sales will come from 20% of your inventory. Focus on placing products within this 20% closer to the packing area to minimize the time required to retrieve them.

4. Put Vertical Space to Use in Your Warehouse

Look up in your warehouse and you’ll notice that you may have vertical storage space that you don’t use. The highest levels of your storage racks can hold seasonal items or specialty products that you don’t sell as often. Using your vertical space ensures that you make the most of your warehouse’s volume instead of only focusing on its square footage.

5. Minimize Your Aisle Widths to Add Warehouse Space

Many small warehouse layout ideas include ways to fit more storage racks or shelves. Reducing the spaces between aisles can help you to find room for another piece of storage equipment.

Standard warehouse aisles measure 12 feet wide, which provides adequate space for a counterbalanced lift truck to move. Narrowing the aisles will require that you instead use smaller equipment such as order pickers or reach trucks.

6. Add a Mezzanine to Maximize Inventory Storage

A mezzanine level can add extra office or storage space on a middle level in your warehouse. However, only use this option in a larger facility in which you have permission to do. You may need to check with local building regulations and the landlord to find out if you can add a mezzanine level.

7. Reorganize Your Shelving for a More Optimal Layout and Save on Space

Your organization ideas for your business’ small warehouse need to include how to sort the products on your shelves for better use. Place products that you sell quickly and more often on lower shelves and closer to the packing station. This organization will help you to reach these products as fast as possible when you need to fulfill orders.

8. Maximize Your Space by Storing Items According to Size

Instead of storing items by type, consider storing them by size. Space out your storage racks so larger items fit on the lowest levels and smaller items on top. Smaller items may require less vertical space between the racks above and below them. As long as you can safely insert and remove pallets from the rack, reducing space between racks can help you to increase storage on the unit.

9. Nix Obsolete Inventory to Increase Storage Space

Stop allocating storage space to products that don’t sell. Two thieves of efficiency in using warehouses are empty areas and improperly used storage. Focus your storage on the goods that you currently sell. Doing this will free up extra space in your warehouse by getting rid of non-moving products.

10. Clean up Your Floor to Gain Valuable Space

Your floor needs to stay clean. In fact, OSHA requires under 1910.176(c) that you must keep all storage spaces free of hazardous obstructions. By maintaining a clean warehouse, you will also benefit from finding storage space on the floor for pallets and bins.

11. Use 5-S and Lean Management Principles for Small Warehouse Optimization

The basic tenant behind lean management principles is doing as much as possible with as little as possible. These principles originated with Toyota Motor Corporation’s production system. This Toyota Production System (TPS) used just-in-time manufacturing to only make what was needed when required. By reducing overhead operating costs and wasted resources, the TPS system improved production efficiency for the entire company.

One type of lean management that came from TPS was 5S. This term comes from the five strategies used to maintain a clean, efficient, and safe workplace. While manufacturers often use this strategy, it also is a useful practice for warehouse optimization.

The term 5-S stands for:

  • Sort: Get rid of unused or rarely used products to free up storage space.
  • Set in Order: Organize the remaining inventory to optimize its layout based on how quickly each product moves.
  • Shine: Keep the warehouse clean and clutter-free.
  • Standardize: Establish procedures and tasks to make the previous points habitual.
  • Sustain: Conduct employee training and checks to ensure the 5S principles continue.

Integrating 5S style management into your small warehouse space operations will improve your storage efficiency and save time. You will then have newly discovered time and space to grow your business.

12. Choose the Right Storage System to Increase Storage Density

Choosing the right storage system is key to optimizing your warehouse. Here’s a quick look at common options to consider: (with helpful images if possible)

  • Floor Stacking Stacking pallets directly on the floor maximizes storage density if your items can be stacked safely. It’s a simple and efficient way to use vertical space.
  • Selective Racking This system places pallets one deep on racks, either back-to-back or against walkways. While it offers low storage density, it provides excellent pick selectivity, making it easy to access specific items.
  • Double-Reach Racking Double-reach racking features two rows of racks deep, either back-to-back or both. This setup reduces the number of aisles, boosting storage density. Note that a specialty forklift is required for this arrangement.
  • Drive-In/Drive-Through Racking Pallets are stored on rails rather than shelves, with forklifts driving into the structure for loading and unloading. This method is efficient but requires careful planning.
  • Push-Back Racking In this system, pallets are placed on mobile carts that slide on rails. As new pallets are added, they push the older ones back. Ideal for limited spaces and consistent product sizes.
  • Pallet Flow Racking Pallet flow racking uses inclined rollers or wheels to allow pallets to flow downhill, simplifying inventory rotation and retrieval.

Weigh Your Options Each storage system has its trade-offs. Some may offer better pick selectivity but less storage density. Consult with experts and gather input from your team to compare options and find the best fit for your needs.

13. Add Storage in Unexpected Places to Optimize Your Space

Don’t let overlooked areas limit your storage potential. Utilize unused corners and the space above doors by installing bins or shelves. This approach can dramatically enhance your storage capacity without the need to upgrade to a larger warehouse.

14. Run Racking Lengthwise to Increase Storage Capacity

If your small warehouse space has a rectangular shape, position racking parallel to the longest side. This strategy maximizes storage capacity by reducing the number of aisles needed, improving overall efficiency and making the most of your available space.

15. Pick the Correct Small Warehouse Space That Fits All of Your Needs

To start optimizing your warehouse space, start with the right amount of room for your business. New small businesses work well within small warehouse spaces. With countless ways to get more storage from the smallest of spaces, you can effectively operate and grow your business from a small warehouse space.

Are You Using Your Space Effectively?

How effectively do you use your small warehouse space? With our units at WareSpace, you’ll have access to the tools you need for fulfilling your small warehouse layout ideas. Our small warehouse spaces offer everything your business needs from both storage facilities and shared offices. Check out our spaces now to see how far your business can go with efficient small warehouse optimization.