The increase in demand for warehouse space recently has been driven by several issues: coronavirus, Brexit and the growth of e-commerce. There is a growing gap between demand and supply of space. Consumers are demanding faster deliveries and more products. Amazon now accounts for more than 25% of all warehousing space in the UK. According to the Office for National Statistics, the number of business premises used for warehousing and logistics in the UK has almost doubled in the last decade. Retailers and distributors outsource to third-party logistics providers (3PLs) for storage and distribution.
Where is there available space?
Some towns and cities in the UK are more affected than others when it comes to warehouse space. The “golden triangle” (the Midlands) has traditionally offered the best solutions but now has limited space to offer. Recent expansion into Yorkshire, the Humber area and towns in the East of England has been seen. There are signs of renewed growth in warehouse development plans, with over 2 million sq ft of warehousing space under construction in Yorkshire in 2023. Research shows that Blackpool, Sheffield, and Liverpool have the best availability.
Adapting to the shortage of warehouse space
Given the lack of available space and higher costs, one solution is to do more with your current space by using effective and advanced storage solutions and by optimising inventory levels creating a correct balance between service levels and the costs of holding stock.
Four ways to maximise space:
Layout
The warehouse layout can promote the effective movement of people and goods increasing throughput and better productivity. A one-way flow is regarded as the most efficient and safe movement path in a warehouse. It helps to ensure safety and eliminate congestion. The most space should be allocated for operations, storage, and throughput activities. The least space should be given up for administrative functions: offices, rest areas, pallet storage, vehicle parking, battery charging, etc. Clearly defined work areas maximise efficiency, minimise risk, and safety issues.
Use available height.
The right warehouse racking system and access equipment can allow more stock. Pallet racking systems are recommended for large spaces and heavy items. They are easy access and need less labour to manage. Building mezzanine levels into current space will provide the solution you need. Investigate suitable vertical racking solutions bearing in mind weight, safety codes and fire regulations.
Storage solutions
There are many options for storage media, dependent on the stock to be handled and required throughput/access. A trade-off must be made between storage density and throughput when deciding on the use of storage and handling system. Powered mobile racking offers excellent space utilisation and individual access but the speed of throughput is compromised. Rack types like drive-in racking offering dense storage don’t give good access to pallets. Other types such as single-deep adjustable pallet racking (APR) that offers individual access to pallets often provide poor space utilisation.
Automation
Warehouse operations must be efficient to control costs, maximise stock to increase sales and meet customer demand. Automating time-consuming routine tasks speed up order processing and reduce the risk for error. Inventory and Warehouse management systems (IMS and WMS) streamline process and help businesses use their space more efficiently.
AI solutions are being adopted to aid decision-making, using market data and current demand to calculate future needs. Automated self-driving vehicles (ARVs) powered by robots can perform tasks with minimum human intervention. Devices like mobile phones, wearables, sensors, and radio-frequency identification tags (RFID) are used to retrieve and process data from automated equipment, speeding up warehouse processes. Contact us at +44(0)1926 430 883 or info@sccgltd.com.
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