Victoria Kickham started her career as a newspaper reporter in the Boston area before moving into B2B journalism. She has covered manufacturing, distribution and supply chain issues for a variety of publications in the industrial and electronics sectors, and now writes about everything from forklift batteries to omnichannel business trends for DC Velocity.
Robotics and automation may be all the rage in warehousing circles these days, but the building blocks of the modern warehouse haven’t strayed far from their roots. Storage racks—the traditional, nonautomated kind—are a prime example and an often overlooked aspect of today’s fast-moving, high-tech facilities. These warehouse staples can help maximize storage space, speed throughput, and create a safer work environment in facilities of all shapes and sizes—provided you have the right system in place to meet your needs.
Wondering how to choose the right storage racking for your warehouse—or determine if your current system is the right one? These three steps can help guide the way.
STEP 1: UNDERSTAND RACK FUNDAMENTALS
In warehousing and logistics, industrial storage racks typically hold pallets, cases, and large individual items that will be picked, packaged, and shipped. Some of the most common types of racks include:
Selective racking.This type of rack is used to store pallets in either single- or double-deep modes. Single-deep racks allow full pallets to be stored side by side, so that all pallets are accessible from the warehouse aisle. Double-deep options increase storage density by allowing two pallets to be stored back to back.
These are some of the simplest racks available and are often used in warehouses that store a high number of different stock-keeping units (SKUs), but a low volume of each SKU, according to Diane Domingues, vice president of marketing and customer service for rack manufacturerFrazier Industrial Co. She describes selective rack as “a great solution for any industry, especially those with changing needs.”
Case- or carton-flow racking. This type of racking consists of shelves equipped with rollers or wheels that allow cases or cartons of product to flow forward as they are picked. Domingues explains that it is “used to store SKUs fulfilled in case- or each-based increments. It’s commonly seen in food, beverage, and retail applications, [but] it can be a solution for any industry with slow-moving SKUs stored in case- or each-based increments as part of its product mix.”
Pallet-flow racking.These racks allow for higher-density storage, and they work much like case-flow racking does. Pallets are loaded from the rear of the system and move forward along a pitched track of wheels. When a pallet is removed, the remaining loads roll forward. Such systems are commonly used in first-in/first-out (FIFO) storage applications, including in the food industry, according to Domingues.
Drive-in racks. These are free-standing self-supporting racks that allow drive-in access to forklifts. Pallets are loaded and unloaded on horizontal rails that run along the inside of the racks, perpendicular to the warehouse aisles. Used to create high-density storage, these are best for high-volume, low-SKU applications, such as manufacturing, beverage, and food processing.
Drive-in rack systems are versatile and cost-effective, allowing products to be stored multiple-positions deep, which can “cut down on aisle space compared to other systems,” according to Eric Andres, national sales manager for rack manufacturerHannibal Industries.
Push-back racking. This high-density storage option is similar to drive-in racking and allows customers to store pallets up to five deep. It uses a series of carts on pitched tracks for loading and unloading. The first pallet to be stored in the system is loaded onto the top cart; the next pallet is used to push the first load back, exposing the next cart for loading. The process repeats until the last pallet is deposited into the system. When a pallet is unloaded, gravity moves the subsequent carts forward until all pallets have been picked. “Unlike drive-in, every push-back bay can store a different SKU, and all pallet access is done without entering the rack,” according to Domingues. The system is commonly used in food and cold storage applications.
Cantilever rack.This type of system is used to store long products, such as pipes or lumber. A series of columns with arms are used to hold the products, which are often bundled together. Products are stored across the arms, allowing a forklift to pick up the load from the center. The racks can also be fitted with wire decking to allow storage of other types of products.
These systems are typically used in manufacturing and construction, and also by some specialty retailers such as hardware stores.
STEP 2: DETERMINE YOUR NEEDS
Because warehouses often store different types of products, with differing volume throughputs, the ideal storage solution often includes more than one type of racking. The first step to determining what you need is to review “unit, method, and area,” according to Domingues. Unit refers to the product load or loads being stored; method is the type of equipment being used to handle the products; and area refers to the space available in your warehouse for racking.
“Your answer to each question will dictate what types of racking are most [suitable] for your specific needs,” Domingues explains. “If you’re unsure what type of rack is best, a racking supplier can help you determine the ideal solution.”
Andres agrees, adding that it’s also important to work with a supplier who understands the rules and regulations for constructing racking systems. Such requirements are often guided by local building codes and can include seismic considerations, which vary by region, as well as safety measures that can help guard against system damage and worker injury.
“We think it starts with finding a trusted partner,” Andres says. “You need to look for someone who understands the requirements for the building space and how those needs may change over time. It’s also critically important that they understand local, state, and federal requirements for the building or warehouse space.”
STEP 3: DESIGN FOR THE LONG TERM
Customers used to select racking systems based on the here and now, but not anymore, Domingues and Andres agree.
“Once upon a time, buyers were selecting rack systems based on their immediate needs. When those needs changed, they bought new racking,” Domingues says. “Now, they are buying systems that take both their immediate needs and projected future needs into account. The modern warehouse can’t wait the time it takes to remove an old rack … and replace it with a new one, so buyers are thinking longer term, with resiliency in mind.”
Lately, that means designing systems that maximize storage capacity, largely in response to a tight warehousing market, according to Andres. Accelerating e-commerce activity, inflation, and a variety of other factors have combined toincrease both demand for and the cost of warehouse space, so companies are looking to get the most out of new and existing facilities. Andres advises designing systems that optimize storage in a smaller warehouse footprint and free up space for picking and other value-added activities, for example.
He says seismic considerations are animportant aspect of long-term designas well. Rack installers can reinforce their designs based on local building code requirements, and there are also specific rack products designed with seismic protections in mind. Hannibal Industries’ patented TubeRack system was designed specifically to withstand the dangers of earthquakes, for example.
“It’s really about designing a safer system,” Andres says.
Domingues agrees that safety is taking on a greater role in rack design today, especially when it comes to ergonomics and worker protection. Storage systems that provide easier access to items, for example, can help reduce injuries and increase productivity—two factors that also address the industry’s labor crunch by keeping workers on the job and maintaining the flow of products through the warehouse.
“Racks have grown to keep up with the needs and demands of the modern warehouse. They’ve become a lot more agile, adaptable, and flexible in their design to accommodate the ever-evolving warehouse environment,” Domingues says, emphasizing the need to focus on the safety aspect in particular. “There is a greater premium on worker, equipment, and product safety than ever before. And today’s racking solutions are designed with a greater emphasis on all of those [considerations].”
Online merchants should consider seven key factors about American consumers in order to optimize their sales and operations this holiday season, according to a report from DHL eCommerce.
First, many of the most powerful sales platforms are marketplaces. With nearly universal appeal, 99% of U.S. shoppers buy from marketplaces, ranked in popularity from Amazon (92%) to Walmart (68%), eBay (47%), Temu (32%), Etsy (28%), and Shein (21%).
Second, they use them often, with 61% of American shoppers buying online at least once a week. Among the most popular items are online clothing and footwear (63%), followed by consumer electronics (33%) and health supplements (30%).
Third, delivery is a crucial aspect of making the sale. Fully 94% of U.S. shoppers say delivery options influence where they shop online, and 45% of consumers abandon their baskets if their preferred delivery option is not offered.
That finding meshes with another report released this week, as a white paper from FedEx Corp. and Morning Consult said that 75% of consumers prioritize free shipping over fast shipping. Over half of those surveyed (57%) prioritize free shipping when making an online purchase, even more than finding the best prices (54%). In fact, 81% of shoppers are willing to increase their spending to meet a retailer’s free shipping threshold, FedEx said.
In additional findings from DHL, the Weston, Florida-based company found:
43% of Americans have an online shopping subscription, with pet food subscriptions being particularly popular (44% compared to 25% globally). Social Media Influence:
61% of shoppers use social media for shopping inspiration, and 26% have made a purchase directly on a social platform.
37% of Americans buy from online retailers in other countries, with 70% doing so at least once a month. Of the 49% of Americans who buy from abroad, most shop from China (64%), followed by the U.K. (29%), France (23%), Canada (15%), and Germany (13%).
While 58% of shoppers say sustainability is important, they are not necessarily willing to pay more for sustainable delivery options.
Schneider says its FreightPower platform now offers owner-operators significantly more access to Schneider’s range of freight options. That can help drivers to generate revenue and strengthen their business through: increased access to freight, high drop and hook rates of over 95% of loads, and a trip planning feature that calculates road miles.
“Collaborating with owner-operators is an important component in the success of our business and the reliable service we can provide customers, which is why the network has grown tremendously in the last 25 years,” Schneider Senior Vice President and General Manager of Truckload and Mexico John Bozec said in a release. "We want to invest in tools that support owner-operators in running and growing their businesses. With Schneider FreightPower, they gain access to better load management, increasing their productivity and revenue potential.”
Economic activity in the logistics industry continued its expansion streak in October, growing for the 11th straight month and reaching its highest level in two years, according to the most recent Logistics Managers’ Index report (LMI), released this week.
The LMI registered 58.9, up from 58.6 in September, and continued a run of moderate growth that began late in 2023. The LMI is a monthly measure of business activity across warehousing and transportation markets. A reading above 50 indicates expansion, and a reading below 50 indicates contraction.
October’s reading showed the fastest rate of expansion in the overall index since September of 2022, when the index hit 61.4. The results show that the industry is continuing its steady recovery from the volatility and sluggish freight market conditions that plagued the sector just after the Covid-19 pandemic, according to the LMI researchers.
“The big takeaway is that we’re continuing the slow, steady recovery,” said LMI researcher Zac Rogers, associate professor of supply chain management at Colorado State University. “I think, ultimately, it’s better to have the slow and steady recovery because it is more sustainable.”
All eight of the LMI’s indices grew during the month, with the Transportation Prices index showing the most growth, at nearly 6 points higher than September, reflecting increased activity across transportation markets. Transportation capacity expanded slightly during the month, remaining just above the 50-point threshold. Rogers said more capacity will enter the market if prices continue to rise, citing idle capacity across the market due to overbuilding during the pandemic years.
“Normally we don’t have this much slack in the market,” he said. “We overbuilt in 2021, so there’s more slack available to soak up this additional demand.”
The LMI is a monthly survey of logistics managers from across the country. It tracks industry growth overall and across eight areas: inventory levels and costs; warehousing capacity, utilization, and prices; and transportation capacity, utilization, and prices. The report is released monthly by researchers from Arizona State University, Colorado State University, Rochester Institute of Technology, Rutgers University, and the University of Nevada, Reno, in conjunction with the Council of Supply Chain Management Professionals (CSCMP).
The port worker strike that began yesterday on Canada’s west coast could cost that country $765 million a day in lost trade, according to the ALPS Marine analysis by Russell Group, a British data and analytics company.
Specifically, the labor strike at the ports of Vancouver, Prince Rupert, and Fraser-Surrey will hurt the commodities of furniture, metal products, meat products, aluminum, and clothing. But since the strike action is focused on stopping containers and general cargo, it will not slow operations in grain vessels or cruise ships, the firm said.
“The Canadian port strike is a microcosm of many of the issues that are impacting Western economies today; protection against automation, better work-life balance, and a cost-of-living crisis,” Russell Group Managing Director Suki Basi said in a release. “Taken together, these pressures are creating a cocktail of connected risk for countries, business, individuals and entire sectors such as marine insurance, which help to mitigate cargo exposures.”
The strike is also sending ripples through neighboring U.S. ports, which are hustling to absorb the diverted cargo, according to David Kamran, assistant vice president for Moody’s Ratings.
“The recurrence of strikes at Canadian seaports is positive for U.S. ports that may gain cargo throughput, depending on the strike duration,” Kamran said in a statement. “The current dispute at Vancouver is another example of the resistance of port unions to automation and the social risk involved with implementing these technologies. Persistent disruption in Canadian port access would strengthen the competitive position of US West Coast ports over the medium-term, as shippers seek to diversify cargo away from unreliable gateways.”
The strike is also affected rail movements, according to ocean cargo carrier Maersk. CN has stopped all international intermodal shipments bound for the west coast ports of Prince Rupert, Robbank, Centerm, Vanterm, and Fraser Surrey Docks. And CPKC has stopped acceptance of all export loads and pre-billed empties destined for Vancouver ports.
Connected with the turmoil, Maersk has suspended its import and export carrier demurrage and detention clock for most affected operations. The ultimate duration of the strike is unknown, but the situation is “rapidly evolving” as talks continue between the Longshore Workers Union (ILWU 514) and the British Columbia Maritime Employers Association (BCMEA), Maersk said.
Terms of the acquisition were not disclosed, but Mode Global said it will now assume Jillamy's comprehensive logistics and freight management solutions, while Jillamy's warehousing, packaging and fulfillment services remain unchanged. Under the agreement, Mode Global will gain more than 200 employees and add facilities in Pennsylvania, Arizona, Florida, Texas, Illinois, South Carolina, Maryland, and Ontario to its existing national footprint.
Chalfont, Pennsylvania-based Jillamy calls itself a 3PL provider with expertise in international freight, intermodal, less than truckload (LTL), consolidation, over the road truckload, partials, expedited, and air freight.
"We are excited to welcome the Jillamy freight team into the Mode Global family," Lance Malesh, Mode’s president and CEO, said in a release. "This acquisition represents a significant step forward in our growth strategy and aligns perfectly with Mode's strategic vision to expand our footprint, ensuring we remain at the forefront of the logistics industry. Joining forces with Jillamy enhances our service portfolio and provides our clients with more comprehensive and efficient logistics solutions."