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].”
Penske said today that its facility in Channahon, Illinois, is now fully operational, and is predominantly powered by an onsite photovoltaic (PV) solar system, expected to generate roughly 80% of the building's energy needs at 200 KW capacity. Next, a Grand Rapids, Michigan, location will be also active in the coming months, and Penske's Linden, New Jersey, location is expected to go online in 2025.
And over the coming year, the Pennsylvania-based company will add seven more sites under its power purchase agreement with Sunrock Distributed Generation, retrofitting them with new PV solar systems which are expected to yield a total of roughly 600 KW of renewable energy. Those additional sites are all in California: Fresno, Hayward, La Mirada, National City, Riverside, San Diego, and San Leandro.
On average, four solar panel-powered Penske Truck Leasing facilities will generate an estimated 1-million-kilowatt hours (kWh) of renewable energy annually and will result in an emissions avoidance of 442 metric tons (MT) CO2e, which is equal to powering nearly 90 homes for one year.
"The initiative to install solar systems at our locations is a part of our company's LEED-certified facilities process," Ivet Taneva, Penske’s vice president of environmental affairs, said in a release. "Investing in solar has considerable economic impacts for our operations as well as the environmental benefits of further reducing emissions related to electricity use."
Overall, Penske Truck Leasing operates and maintains more than 437,000 vehicles and serves its customers from nearly 1,000 maintenance facilities and more than 2,500 truck rental locations across North America.
That challenge is one of the reasons that fewer shoppers overall are satisfied with their shopping experiences lately, Lincolnshire, Illinois-based Zebra said in its “17th Annual Global Shopper Study.”th Annual Global Shopper Study.” While 85% of shoppers last year were satisfied with both the in-store and online experiences, only 81% in 2024 are satisfied with the in-store experience and just 79% with online shopping.
In response, most retailers (78%) say they are investing in technology tools that can help both frontline workers and those watching operations from behind the scenes to minimize theft and loss, Zebra said.
Just 38% of retailers currently use AI-based prescriptive analytics for loss prevention, but a much larger 50% say they plan to use it in the next 1-3 years. That was followed by self-checkout cameras and sensors (45%), computer vision (46%), and RFID tags and readers (42%) that are planned for use within the next three years, specifically for loss prevention.
Those strategies could help improve the brick and mortar shopping experience, since 78% of shoppers say it’s annoying when products are locked up or secured within cases. Adding to that frustration is that it’s hard to find an associate while shopping in stores these days, according to 70% of consumers. In response, some just walk out; one in five shoppers has left a store without getting what they needed because a retail associate wasn’t available to help, an increase over the past two years.
The survey also identified additional frustrations faced by retailers and associates:
challenges with offering easy options for click-and-collect or returns, despite high shopper demand for them
the struggle to confirm current inventory and pricing
lingering labor shortages and increasing loss incidents, even as shoppers return to stores
“Many retailers are laying the groundwork to build a modern store experience,” Matt Guiste, Global Retail Technology Strategist, Zebra Technologies, said in a release. “They are investing in mobile and intelligent automation technologies to help inform operational decisions and enable associates to do the things that keep shoppers happy.”
The survey was administered online by Azure Knowledge Corporation and included 4,200 adult shoppers (age 18+), decision-makers, and associates, who replied to questions about the topics of shopper experience, device and technology usage, and delivery and fulfillment in store and online.
Supply chains are poised for accelerated adoption of mobile robots and drones as those technologies mature and companies focus on implementing artificial intelligence (AI) and automation across their logistics operations.
That’s according to data from Gartner’s Hype Cycle for Mobile Robots and Drones, released this week. The report shows that several mobile robotics technologies will mature over the next two to five years, and also identifies breakthrough and rising technologies set to have an impact further out.
Gartner’s Hype Cycle is a graphical depiction of a common pattern that arises with each new technology or innovation through five phases of maturity and adoption. Chief supply chain officers can use the research to find robotic solutions that meet their needs, according to Gartner.
Gartner, Inc.
The mobile robotic technologies set to mature over the next two to five years are: collaborative in-aisle picking robots, light-cargo delivery robots, autonomous mobile robots (AMRs) for transport, mobile robotic goods-to-person systems, and robotic cube storage systems.
“As organizations look to further improve logistic operations, support automation and augment humans in various jobs, supply chain leaders have turned to mobile robots to support their strategy,” Dwight Klappich, VP analyst and Gartner fellow with the Gartner Supply Chain practice, said in a statement announcing the findings. “Mobile robots are continuing to evolve, becoming more powerful and practical, thus paving the way for continued technology innovation.”
Technologies that are on the rise include autonomous data collection and inspection technologies, which are expected to deliver benefits over the next five to 10 years. These include solutions like indoor-flying drones, which utilize AI-enabled vision or RFID to help with time-consuming inventory management, inspection, and surveillance tasks. The technology can also alleviate safety concerns that arise in warehouses, such as workers counting inventory in hard-to-reach places.
“Automating labor-intensive tasks can provide notable benefits,” Klappich said. “With AI capabilities increasingly embedded in mobile robots and drones, the potential to function unaided and adapt to environments will make it possible to support a growing number of use cases.”
Humanoid robots—which resemble the human body in shape—are among the technologies in the breakthrough stage, meaning that they are expected to have a transformational effect on supply chains, but their mainstream adoption could take 10 years or more.
“For supply chains with high-volume and predictable processes, humanoid robots have the potential to enhance or supplement the supply chain workforce,” Klappich also said. “However, while the pace of innovation is encouraging, the industry is years away from general-purpose humanoid robots being used in more complex retail and industrial environments.”
An eight-year veteran of the Georgia company, Hakala will begin his new role on January 1, when the current CEO, Tero Peltomäki, will retire after a long and noteworthy career, continuing as a member of the board of directors, Cimcorp said.
According to Hakala, automation is an inevitable course in Cimcorp’s core sectors, and the company’s end-to-end capabilities will be crucial for clients’ success. In the past, both the tire and grocery retail industries have automated individual machines and parts of their operations. In recent years, automation has spread throughout the facilities, as companies want to be able to see their entire operation with one look, utilize analytics, optimize processes, and lead with data.
“Cimcorp has always grown by starting small in the new business segments. We’ve created one solution first, and as we’ve gained more knowledge of our clients’ challenges, we have been able to expand,” Hakala said in a release. “In every phase, we aim to bring our experience to the table and even challenge the client’s initial perspective. We are interested in what our client does and how it could be done better and more efficiently.”
Although many shoppers will
return to physical stores this holiday season, online shopping remains a driving force behind peak-season shipping challenges, especially when it comes to the last mile. Consumers still want fast, free shipping if they can get it—without any delays or disruptions to their holiday deliveries.
One disruptor that gets a lot of headlines this time of year is package theft—committed by so-called “porch pirates.” These are thieves who snatch parcels from front stairs, side porches, and driveways in neighborhoods across the country. The problem adds up to billions of dollars in stolen merchandise each year—not to mention headaches for shippers, parcel delivery companies, and, of course, consumers.
Given the scope of the problem, it’s no wonder online shoppers are worried about it—especially during holiday season. In its annual report on package theft trends, released in October, the
security-focused research and product review firm Security.org found that:
17% of Americans had a package stolen in the past three months, with the typical stolen parcel worth about $50. Some 44% said they’d had a package taken at some point in their life.
Package thieves poached more than $8 billion in merchandise over the past year.
18% of adults said they’d had a package stolen that contained a gift for someone else.
Ahead of the holiday season, 88% of adults said they were worried about theft of online purchases, with more than a quarter saying they were “extremely” or “very” concerned.
But it doesn’t have to be that way. There are some low-tech steps consumers can take to help guard against porch piracy along with some high-tech logistics-focused innovations in the pipeline that can protect deliveries in the last mile. First, some common-sense advice on avoiding package theft from the Security.org research:
Install a doorbell camera, which is a relatively low-cost deterrent.
Bring packages inside promptly or arrange to have them delivered to a secure location if no one will be at home.
Consider using click-and-collect options when possible.
If the retailer allows you to specify delivery-time windows, consider doing so to avoid having packages sit outside for extended periods.
These steps may sound basic, but they are by no means a given: Fewer than half of Americans consider the timing of deliveries, less than a third have a doorbell camera, and nearly one-fifth take no precautions to prevent package theft, according to the research.
Tech vendors are stepping up to help. One example is
Arrive AI, which develops smart mailboxes for last-mile delivery and pickup. The company says its Mailbox-as-a-Service (MaaS) platform will revolutionize the last mile by building a network of parcel-storage boxes that can be accessed by people, drones, or robots. In a nutshell: Packages are placed into a weatherproof box via drone, robot, driverless carrier, or traditional delivery method—and no one other than the rightful owner can access it.
Although the platform is still in development, the company already offers solutions for business clients looking to secure high-value deliveries and sensitive shipments. The health-care industry is one example: Arrive AI offers secure drone delivery of medical supplies, prescriptions, lab samples, and the like to hospitals and other health-care facilities. The platform provides real-time tracking, chain-of-custody controls, and theft-prevention features. Arrive is conducting short-term deployments between logistics companies and health-care partners now, according to a company spokesperson.
The MaaS solution has a pretty high cool factor. And the common-sense best practices just seem like solid advice. Maybe combining both is the key to a more secure last mile—during peak shipping season and throughout the year as well.