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.
Looking to add storage racking or replace aging, outdated racks in your warehouse? Or maybe your company is building a warehouse and you need to install an entirely new system for the pallets, cases, and individual items you keep in stock. Before you dive in and purchase what you think you’ll need, storage rack experts say it’s best to press pause, take stock of your space and product mix, and consider your company’s growth plans in order to create a system that both maximizes your space and makes the best use of the racking.
“In general, there are many options available for companies to consider,” says Diane Domingues, vice president of marketing and customer service for pallet rack manufacturer Frazier Industrial Co. Options include everything from conventional pallet racking to rack-supported structures for automated storage and retrieval systems (AS/RS). “The key thing is partnering with companies that are able to work with you on what your goals are—for today and tomorrow.”
Here are three things to keep in mind on your journey to finding the best storage system for your needs.
1. CONSIDER YOUR SPACE
One of the first things to think about is the space you’re working with—particularly, whether you’re outfitting an existing space or creating a storage system for a brand-new building. Existing structures limit you to a set footprint and design, and you’ll have to consider factors such as ceiling height and column spacing throughout the building. Lower ceilings will limit your ability to maximize vertical storage, for instance, and those columns—which support the building—will determine how you can lay out your warehouse aisles.
“In an existing [warehouse] or in a building that’s sitting there empty, you’re dealing with existing column bays,” explains Norm Saenz, partner and managing director at supply chain consulting firm St. Onge Co., which designs, sources, and manages the installation of warehousing and material handling solutions.
Bay areas in a building are the spaces between the columns; designers have to work within that framework to develop a system of racks and aisles—and it’s rarely a perfect fit.
“You may have to bury a column in a bay, or you may have some odd aisles” or inconsistent sizing throughout the building, he says. “And you have to work around existing clear height.”
New construction is a different story.
“If you have a new building, what’s nice is you can dictate the column spacing, which gives you more flexibility to accommodate the rack types you’re going to use,” Saenz says. “And you can also determine how tall you can go.”
Domingues agrees.
“The nice thing about greenfield buildings is that it gives that person or that account or that customer a lot more flexibility and options in terms of design,” she says. “It allows them to think not only [about the best solution] for what footprint they have today, but also [what they may need] in the future.”
Whether new or existing, most warehouses have more than one type of racking—sometimes as many as three or four. A typical mix could include any of the following:
Selective racking,whichis used to store pallets in either single- or double-deep modes.
Case- or carton-flow racking,which consists of shelves equipped with rollers or wheels that allow cases or cartons of product to flow forward as the ones in front are picked.
Pallet-flow racking,which allows for higher-density storage and works much like case-flow racking does.
Drive-in racks, whichare free-standing, self-supporting racks that allow drive-in access for forklifts.
Push-back racking, whichis a high-density storage option similar to drive-in racking; it allows customers to store pallets up to five deep.
Cantilever rack, which is used to store long products, such as pipes or lumber.
And then there’s automation. Automated storage solutions can include traditional AS/RS or pallet shuttle systems—which move product in and out of a rack-supported or standalone structure. AS/RS and pallet shuttle systems can help maximize storage density, allowing companies to get more out of a smaller building. A typical, crane-based AS/RS can reach more than 100 feet, while pallet shuttle systems are generally installed in facilities with lower ceilings—say, 32 to 50 feet, according to Saenz.
2. KNOW YOUR PRODUCT MIX
You also need detailed information on the type and variety of products you are storing.
“When customers start to evaluate [their needs], they should really consider these criteria: What are they storing? How much are they storing? What does it weigh? And what’s the movement of it?” Domingues says, adding that seasonality also plays a role. “If you’re storing turkeys, for example, you’re going store them differently in the months and weeks before Thanksgiving than you do in the spring.”
Companies should also consider the type of equipment they’re using to move the product as well as the labor component. Saenz offers an example to illustrate the point.
“Labor efficiency is a common factor in making [warehouse] storage-area design decisions. The time it takes to navigate the travel aisles and put away or retrieve inventory is different when interacting with the various types of storage equipment and related layout configurations. For example, reaching the back pallet in a double-deep rack setup takes longer than grabbing a pallet from a single-deep pallet rack system,” he explains. “And aligning and moving into drive-in rack takes longer than interacting with single- or double-deep rack. The trade-offs between [capacity], labor efficiency, and capital costs are intermingled in these tough decisions, and it sometimes comes down to what issue is the most important to solve.”
Considered alongside your space constraints, these criteria help form a “unit, method, area” approach to evaluating your storage needs, Domingues says. 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 storage racking.
3. PLAN FOR GROWTH
A final rule of thumb is to consider your company’s growth trajectory and how it may affect your storage needs.
“It can be difficult to know how your business is going to change 10 [or more] years into the future, but with the right team members included, good decisions can be made,” Saenz says. “This team may include business leaders [as well as] marketing and merchandising people who can offer insight into growth projections, product changes, and future potential acquisitions.”
Companies also have to consider the unknown—which is why it’s important to factor in flexibility when designing a storage system. For that reason, many facilities rely heavily on single-deep pallet racking, which Saenz says is the most flexible and affordable storage medium available. Customers can add decking to single-deep rack to allow for case storage, for example. They can also add or remove beams to create smaller or larger storage positions.
“When we do projects, we look at inventory-level history and growth projections—for example, what is your SKU [stock-keeping unit] count going to be in the next seven years?” he says. “We look at that to determine the rack mix. We’ll determine what’s ideal, and then we might back off and be more flexible.”
The need for planning makes what many may consider a simple product not so simple.
“It’s rack, but there are nuances to all of this,” Saenz adds. “It’s the cost, the density, the utilization factor, the equipment being used … it all comes into play.”
The New York-based industrial artificial intelligence (AI) provider Augury has raised $75 million for its process optimization tools for manufacturers, in a deal that values the company at more than $1 billion, the firm said today.
According to Augury, its goal is deliver a new generation of AI solutions that provide the accuracy and reliability manufacturers need to make AI a trusted partner in every phase of the manufacturing process.
The “series F” venture capital round was led by Lightrock, with participation from several of Augury’s existing investors; Insight Partners, Eclipse, and Qumra Capital as well as Schneider Electric Ventures and Qualcomm Ventures. In addition to securing the new funding, Augury also said it has added Elan Greenberg as Chief Operating Officer.
“Augury is at the forefront of digitalizing equipment maintenance with AI-driven solutions that enhance cost efficiency, sustainability performance, and energy savings,” Ashish (Ash) Puri, Partner at Lightrock, said in a release. “Their predictive maintenance technology, boasting 99.9% failure detection accuracy and a 5-20x ROI when deployed at scale, significantly reduces downtime and energy consumption for its blue-chip clients globally, offering a compelling value proposition.”
The money supports the firm’s approach of "Hybrid Autonomous Mobile Robotics (Hybrid AMRs)," which integrate the intelligence of "Autonomous Mobile Robots (AMRs)" with the precision and structure of "Automated Guided Vehicles (AGVs)."
According to Anscer, it supports the acceleration to Industry 4.0 by ensuring that its autonomous solutions seamlessly integrate with customers’ existing infrastructures to help transform material handling and warehouse automation.
Leading the new U.S. office will be Mark Messina, who was named this week as Anscer’s Managing Director & CEO, Americas. He has been tasked with leading the firm’s expansion by bringing its automation solutions to industries such as manufacturing, logistics, retail, food & beverage, and third-party logistics (3PL).
Supply chains continue to deal with a growing volume of returns following the holiday peak season, and 2024 was no exception. Recent survey data from product information management technology company Akeneo showed that 65% of shoppers made holiday returns this year, with most reporting that their experience played a large role in their reason for doing so.
The survey—which included information from more than 1,000 U.S. consumers gathered in January—provides insight into the main reasons consumers return products, generational differences in return and online shopping behaviors, and the steadily growing influence that sustainability has on consumers.
Among the results, 62% of consumers said that having more accurate product information upfront would reduce their likelihood of making a return, and 59% said they had made a return specifically because the online product description was misleading or inaccurate.
And when it comes to making those returns, 65% of respondents said they would prefer to return in-store, if possible, followed by 22% who said they prefer to ship products back.
“This indicates that consumers are gravitating toward the most sustainable option by reducing additional shipping,” the survey authors said in a statement announcing the findings, adding that 68% of respondents said they are aware of the environmental impact of returns, and 39% said the environmental impact factors into their decision to make a return or exchange.
The authors also said that investing in the product experience and providing reliable product data can help brands reduce returns, increase loyalty, and provide the best customer experience possible alongside profitability.
When asked what products they return the most, 60% of respondents said clothing items. Sizing issues were the number one reason for those returns (58%) followed by conflicting or lack of customer reviews (35%). In addition, 34% cited misleading product images and 29% pointed to inaccurate product information online as reasons for returning items.
More than 60% of respondents said that having more reliable information would reduce the likelihood of making a return.
“Whether customers are shopping directly from a brand website or on the hundreds of e-commerce marketplaces available today [such as Amazon, Walmart, etc.] the product experience must remain consistent, complete and accurate to instill brand trust and loyalty,” the authors said.
When you get the chance to automate your distribution center, take it.
That's exactly what leaders at interior design house
Thibaut Design did when they relocated operations from two New Jersey distribution centers (DCs) into a single facility in Charlotte, North Carolina, in 2019. Moving to an "empty shell of a building," as Thibaut's Michael Fechter describes it, was the perfect time to switch from a manual picking system to an automated one—in this case, one that would be driven by voice-directed technology.
"We were 100% paper-based picking in New Jersey," Fechter, the company's vice president of distribution and technology, explained in a
case study published by Voxware last year. "We knew there was a need for automation, and when we moved to Charlotte, we wanted to implement that technology."
Fechter cites Voxware's promise of simple and easy integration, configuration, use, and training as some of the key reasons Thibaut's leaders chose the system. Since implementing the voice technology, the company has streamlined its fulfillment process and can onboard and cross-train warehouse employees in a fraction of the time it used to take back in New Jersey.
And the results speak for themselves.
"We've seen incredible gains [from a] productivity standpoint," Fechter reports. "A 50% increase from pre-implementation to today."
THE NEED FOR SPEED
Thibaut was founded in 1886 and is the oldest operating wallpaper company in the United States, according to Fechter. The company works with a global network of designers, shipping samples of wallpaper and fabrics around the world.
For the design house's warehouse associates, picking, packing, and shipping thousands of samples every day was a cumbersome, labor-intensive process—and one that was prone to inaccuracy. With its paper-based picking system, mispicks were common—Fechter cites a 2% to 5% mispick rate—which necessitated stationing an extra associate at each pack station to check that orders were accurate before they left the facility.
All that has changed since implementing Voxware's Voice Management Suite (VMS) at the Charlotte DC. The system automates the workflow and guides associates through the picking process via a headset, using voice commands. The hands-free, eyes-free solution allows workers to focus on locating and selecting the right item, with no paper-based lists to check or written instructions to follow.
Thibaut also uses the tech provider's analytics tool, VoxPilot, to monitor work progress, check orders, and keep track of incoming work—managers can see what orders are open, what's in process, and what's completed for the day, for example. And it uses VoxTempo, the system's natural language voice recognition (NLVR) solution, to streamline training. The intuitive app whittles training time down to minutes and gets associates up and working fast—and Thibaut hitting minimum productivity targets within hours, according to Fechter.
EXPECTED RESULTS REALIZED
Key benefits of the project include a reduction in mispicks—which have dropped to zero—and the elimination of those extra quality-control measures Thibaut needed in the New Jersey DCs.
"We've gotten to the point where we don't even measure mispicks today—because there are none," Fechter said in the case study. "Having an extra person at a pack station to [check] every order before we pack [it]—that's been eliminated. Not only is the pick right the first time, but [the order] also gets packed and shipped faster than ever before."
The system has increased inventory accuracy as well. According to Fechter, it's now "well over 99.9%."
IT projects can be daunting, especially when the project involves upgrading a warehouse management system (WMS) to support an expansive network of warehousing and logistics facilities. Global third-party logistics service provider (3PL) CJ Logistics experienced this first-hand recently, embarking on a WMS selection process that would both upgrade performance and enhance security for its U.S. business network.
The company was operating on three different platforms across more than 35 warehouse facilities and wanted to pare that down to help standardize operations, optimize costs, and make it easier to scale the business, according to CIO Sean Moore.
Moore and his team started the WMS selection process in late 2023, working with supply chain consulting firm Alpine Supply Chain Solutions to identify challenges, needs, and goals, and then to select and implement the new WMS. Roughly a year later, the 3PL was up and running on a system from Körber Supply Chain—and planning for growth.
SECURING A NEW SOLUTION
Leaders from both companies explain that a robust WMS is crucial for a 3PL's success, as it acts as a centralized platform that allows seamless coordination of activities such as inventory management, order fulfillment, and transportation planning. The right solution allows the company to optimize warehouse operations by automating tasks, managing inventory levels, and ensuring efficient space utilization while helping to boost order processing volumes, reduce errors, and cut operational costs.
CJ Logistics had another key criterion: ensuring data security for its wide and varied array of clients, many of whom rely on the 3PL to fill e-commerce orders for consumers. Those clients wanted assurance that consumers' personally identifying information—including names, addresses, and phone numbers—was protected against cybersecurity breeches when flowing through the 3PL's system. For CJ Logistics, that meant finding a WMS provider whose software was certified to the appropriate security standards.
"That's becoming [an assurance] that our customers want to see," Moore explains, adding that many customers wanted to know that CJ Logistics' systems were SOC 2 compliant, meaning they had met a standard developed by the American Institute of CPAs for protecting sensitive customer data from unauthorized access, security incidents, and other vulnerabilities. "Everybody wants that level of security. So you want to make sure the system is secure … and not susceptible to ransomware.
"It was a critical requirement for us."
That security requirement was a key consideration during all phases of the WMS selection process, according to Michael Wohlwend, managing principal at Alpine Supply Chain Solutions.
"It was in the RFP [request for proposal], then in demo, [and] then once we got to the vendor of choice, we had a deep-dive discovery call to understand what [security] they have in place and their plan moving forward," he explains.
Ultimately, CJ Logistics implemented Körber's Warehouse Advantage, a cloud-based system designed for multiclient operations that supports all of the 3PL's needs, including its security requirements.
GOING LIVE
When it came time to implement the software, Moore and his team chose to start with a brand-new cold chain facility that the 3PL was building in Gainesville, Georgia. The 270,000-square-foot facility opened this past November and immediately went live running on the Körber WMS.
Moore and Wohlwend explain that both the nature of the cold chain business and the greenfield construction made the facility the perfect place to launch the new software: CJ Logistics would be adding customers at a staggered rate, expanding its cold storage presence in the Southeast and capitalizing on the location's proximity to major highways and railways. The facility is also adjacent to the future Northeast Georgia Inland Port, which will provide a direct link to the Port of Savannah.
"We signed a 15-year lease for the building," Moore says. "When you sign a long-term lease … you want your future-state software in place. That was one of the key [reasons] we started there.
"Also, this facility was going to bring on one customer after another at a metered rate. So [there was] some risk reduction as well."
Wohlwend adds: "The facility plus risk reduction plus the new business [element]—all made it a good starting point."
The early benefits of the WMS include ease of use and easy onboarding of clients, according to Moore, who says the plan is to convert additional CJ Logistics facilities to the new system in 2025.
"The software is very easy to use … our employees are saying they really like the user interface and that you can find information very easily," Moore says, touting the partnership with Alpine and Körber as key to making the project a success. "We are on deck to add at least four facilities at a minimum [this year]."