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How to Calculate Warehouse Capacity

23/2/24

For supply chain professionals, warehouse managers and business owners, maximising storage space is paramount to efficiency and profitability. Every cubic foot counts and understanding your warehouse’s capacity is the first step to optimising its potential.

Importance of warehouse capacity

Optimising your warehouse capacity isn’t just about numbers; it’s about creating a smooth-running, efficient engine that fuels your business success.

Every wasted cubic foot translates directly to wasted spend. Optimising your layout and capacity minimises rental and maintenance costs for unused space, freeing up resources for areas that deliver greater value. Likewise, using all the space available to you makes the space work harder for you with no additional spending.

A warehouse that makes the most of its space is typically a warehouse that is well organised. Well-organised warehouses lead to organised and predictable storage, streamlining fulfilment processes and boosting employee productivity. It’s also much safer as clutter is a major hazard that can lead to trips, falls and inaccessible paths and exits.

How do you calculate the capacity of a warehouse?

Calculating your warehouse capacity is a fairly straightforward process.

Firstly, measure the total square footage of your space, excluding areas like offices and toilets. Calculate the maximum storage height by measuring the distance between the floor and the lowest overhead obstruction. Multiply these numbers together to gain your maximum capacity.

You’ll also need to factor in your storage options as these will affect how much of your space you will be able to use.

For pallets, consider their size, the safe maximum stacking height and the aisle requirements. Divide cubic capacity by individual pallet volume and adjust for stacking and aisle space.

You’ll also need to analyse your shelf dimensions, weight capacity and aisle space needed. Calculate shelf unit capacity and multiply by the number of units, considering weight limits.

For bulk storage, factor in bin sizes, stacking arrangements and access needs.

Remember, this is a starting point. Account for safety clearances, fire safety requirements and accessibility needs when applying these formulas.

Optimising warehouse capacity

With your capacity calculated, unlock its full potential with these strategies:

  • Implement a storage layout audit by analysing current storage methods and identifying areas for improvement.
  • Utilise shelving and mezzanines to maximise vertical space.
  • Widen aisles for efficient movement and consider high-density storage solutions.
  • Strategically place fast-moving items near picking areas for faster fulfilment.
  • Leverage data analytics by tracking inventory movement and optimising storage based on product demand.
  • Invest in Warehouse Management Systems (WMS) to track inventory, optimise picking routes and manage space allocation.

Increasing current warehouse capacity

If your current space feels maxed out, there are some options you may want to consider.

If you have maxed out your floor space in your warehouse, consider moving upwards. Depending on the height of your unit, this may involve taller, secure shelving units, or it may be a case of adding a mezzanine floor into the space. Both options provide extra utilisation of existing space.

If neither of those are a viable option for your needs and situation, you may consider renegotiating your lease with your landlord as a means of expanding into adjacent spaces.

A different approach could be to utilise satellite warehouses; this could either be for less frequently accessed items or for different types of items. For example, your main warehouse in Location A could be for dry goods whereas your smaller warehouse in Location B could be for chilled goods such as dairy items or medicine.

How Optima WS will help

Our Optimiser Warehouse Management System (WMS) is designed to increase the efficiency in warehouses, making them more equipped to handle the demands of today’s supply chains.

Get in touch today to see how Optima can help your business.