Warehouse Storage Rack Use Case Analysis

Warehouse Storage Rack Use Case Analysis

Introduction
A mid-sized electronics distributor sought to optimize its 10,000 m² warehouse that stored both finished goods and components. The primary objectives were to increase storage density, improve picking accuracy, and reduce labor costs. After evaluating several options, the company selected a selective pallet storage rack system with adjustable beam levels and wire mesh decking. This use case analysis explores the implementation process, performance metrics, and operational benefits.

1. Initial Challenges

• Underutilized Vertical Space: The existing single-level shelving system occupied more than 6,500 m² of floor area and left nearly 40% of the 6 m ceiling height unused.

• Inefficient Picking Process: Warehouse staff reported an average of 2.5 minutes per order line due to frequent searching, causing order fulfillment delays.

• High Labor Costs: Reliance on manual forklifts and ladder picking led to inefficiencies and safety concerns, especially during peak season when overtime expenses spiked by 20%.

2. Solution Design

• Selective Pallet Racking: Installed 5 m-tall upright frames with three beam levels per frame, each beam rated for 2,500 kg. Adjustable beam pitch at 75 mm intervals allowed for future reconfiguration.

• Wire Mesh Decking: Placed on each pair of beams to support smaller cartons and loose parts, ensuring that no items fell through and reducing the number of separate shelving units.

• Material Handling Integration: Configured standard counterbalance forklifts and narrow-aisle electric stackers to work seamlessly within 3.2 m-wide aisles, improving maneuverability while maintaining selectivity.

3. Implementation Process

• Phase 1 (Two Weeks): Dismantled old shelving and leveled the warehouse floor. Installed upright frames in a three-bay arrangement, anchoring them to the concrete slab with high-strength bolts.

• Phase 2 (One Week): Installed load beams, wire mesh decks, and column protectors at each aisle end. Conducted load testing to verify rack stability under full weight (max. 2,500 kg per level).

• Phase 3 (One Week): Trained warehouse staff on new picking routes, rack load limits, and safety protocols, including proper forklift engagement and pallet placement.

4. Performance Metrics and Outcomes

• Storage Density Increase: Leveraging previously unused height, the new racking added 1,200 additional pallet positions, representing a 30% rise in storage capacity without expanding the facility footprint.

• Picking Efficiency: Average time per order line decreased from 2.5 minutes to 1.7 minutes—a 32% improvement—because every pallet location remained in full view and accessible.

• Labor Cost Reduction: By streamlining pick routes and minimizing pallet shuffling, the distributor reduced overtime expenses by 18% in the first quarter post-implementation.

• Safety Improvements: Column protectors and wire mesh decking prevented product damage, and no rack-related accidents were reported during the first six months of operation.

5. Key Takeaways

• Modularity Pays Off: The adjustable beam heights allowed the distributor to shift from larger, bulky pallets to smaller component bins as SKU profiles changed over time.

• Full Selectivity Matters: Eliminating the need to move adjacent pallets enabled faster order fulfillment—particularly critical for high-velocity SKUs.

• Vertical Space Utilization: Converting unused overhead capacity into storage positions delivered immediate ROI through deferred facility expansion.

• Integrating Equipment: Designing aisle widths around specific forklifts and stackers ensured that throughput gains were not negated by maneuverability constraints.

Conclusion
Implementing a warehouse storage rack system not only addressed the distributor’s pressing space limitations but also unlocked significant operational efficiencies. By focusing on selective pallet racking with robust safety accessories and compatible handling equipment, the company achieved measurable improvements in storage density, picking speed, and labor cost savings. As a result, this use case exemplifies how strategic rack selection and thoughtful implementation can transform warehouse performance.