Full shelves, pallets waiting at receiving, and shipping that can't keep up. Situations like these often lead to a simple conclusion: we need a bigger warehouse. However, the same problems can have different causes. Sometimes you lack storage locations, other times goods are waiting unnecessarily or taking up space that could be used more effectively.
To correctly determine what needs to work differently in a new warehouse, you first need to accurately identify the causes of your current issues. Just looking at a full warehouse hall isn't enough.
Observe where and why work is stalling
Start with specific situations where the warehouse is losing time or space. For example, when pallets pile up at receiving, it isn't immediately clear whether the receiving zone is too small or if the goods are waiting too long for inspection and put-away. The result looks the same, but the solutions differ.
When assessing your current operations, focus primarily on:
- how many suitable storage locations are actually free and how their occupancy changes,
- how much space is taken up by inventory that hasn't sold for a long time,
- how long goods wait between receiving and put-away,
- how much time is spent walking, searching, and waiting during picking,
- when and where orders pile up before packing or shipping.
GRiT Tip: Compare normal operations with seasonal peaks. A one-time backlog after a large delivery may have a different cause than a long-term lack of capacity. What matters is not just where the goods are sitting, but also why and for how long.
Distinguish between a lack of space and inefficient use
If unsellable inventory is taking up space on shelves and small items are stored in disproportionately large areas, a full warehouse doesn't necessarily mean the building lacks capacity. A company can often gain space by adjusting its inventory mix or storage methods.
Conversely, a true space constraint is indicated when, even with efficient warehouse use, there are not enough suitable locations and safe handling space for the required volume of goods. The limit might not be the entire warehouse, but just one part of it. For example, empty shelf space won't help if operations regularly grind to a halt at a cramped packing station.
Similarly, focus on slow picking. Warehouse staff can be slowed down by a lack of handling space, but also by searching for items, verifying inventory discrepancies, or waiting for stock replenishment. In these cases, a larger hall alone will not eliminate the root cause.
Choose your next step based on the cause
If the problem lies in inaccurate records or work organization, you primarily need to change how the warehouse is managed. WMS (warehouse management system) – an electronic warehouse management system – helps track inventory at specific locations and manage its movement. This can reduce time spent searching for goods and unnecessary travel, which currently slow down work regardless of the size of the hall.
However, if the warehouse truly lacks spatial capacity, the system itself will not create additional free space. Both causes can also be combined: the warehouse genuinely needs more space while also being held back by inefficient processes.
For every problem, therefore, ask yourself a simple question: Would this problem disappear in a larger hall if the way of working remained the same?
The answer will help determine what needs to be solved by a new space and what requires a change in processes. Moving can then be based on the actual needs of your operation, not just the feeling that your current warehouse is no longer enough.
Do you want to find out which issues in your warehouse can be solved by LOKiA WMS? Schedule a consultation with us and we will discuss the options for your operation.
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During a free consultation, we will review your current setup and recommend the next steps based on what your company actually needs.
