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Looking to add storage racking or replace aging, outdated racks in your warehouse?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.”
Autonomous forklift maker Cyngn is deploying its DriveMod Tugger model at COATS Company, the largest full-line wheel service equipment manufacturer in North America, the companies said today.
By delivering the self-driving tuggers to COATS’ 150,000+ square foot manufacturing facility in La Vergne, Tennessee, Cyngn said it would enable COATS to enhance efficiency by automating the delivery of wheel service components from its production lines.
“Cyngn’s self-driving tugger was the perfect solution to support our strategy of advancing automation and incorporating scalable technology seamlessly into our operations,” Steve Bergmeyer, Continuous Improvement and Quality Manager at COATS, said in a release. “With its high load capacity, we can concentrate on increasing our ability to manage heavier components and bulk orders, driving greater efficiency, reducing costs, and accelerating delivery timelines.”
Terms of the deal were not disclosed, but it follows another deployment of DriveMod Tuggers with electric automaker Rivian earlier this year.
Manufacturing and logistics workers are raising a red flag over workplace quality issues according to industry research released this week.
A comparative study of more than 4,000 workers from the United States, the United Kingdom, and Australia found that manufacturing and logistics workers say they have seen colleagues reduce the quality of their work and not follow processes in the workplace over the past year, with rates exceeding the overall average by 11% and 8%, respectively.
The study—the Resilience Nation report—was commissioned by UK-based regulatory and compliance software company Ideagen, and it polled workers in industries such as energy, aviation, healthcare, and financial services. The results “explore the major threats and macroeconomic factors affecting people today, providing perspectives on resilience across global landscapes,” according to the authors.
According to the study, 41% of manufacturing and logistics workers said they’d witnessed their peers hiding mistakes, and 45% said they’ve observed coworkers cutting corners due to apathy—9% above the average. The results also showed that workers are seeing colleagues take safety risks: More than a third of respondents said they’ve seen people putting themselves in physical danger at work.
The authors said growing pressure inside and outside of the workplace are to blame for the lack of diligence and resiliency on the job. Internally, workers say they are under pressure to deliver more despite reduced capacity. Among the external pressures, respondents cited the rising cost of living as the biggest problem (39%), closely followed by inflation rates, supply chain challenges, and energy prices.
“People are being asked to deliver more at work when their resilience is being challenged by economic and political headwinds,” Ideagen’s CEO Ben Dorks said in a statement announcing the findings. “Ultimately, this is having a determinantal impact on business productivity, workplace health and safety, and the quality of work produced, as well as further reducing the resilience of the nation at large.”
Respondents said they believe technology will eventually alleviate some of the stress occurring in manufacturing and logistics, however.
“People are optimistic that emerging tech and AI will ultimately lighten the load, but they’re not yet feeling the benefits,” Dorks added. “It’s a gap that now, more than ever, business leaders must look to close and support their workforce to ensure their staff remain safe and compliance needs are met across the business.”
The “2024 Year in Review” report lists the various transportation delays, freight volume restrictions, and infrastructure repair costs of a long string of events. Those disruptions include labor strikes at Canadian ports and postal sites, the U.S. East and Gulf coast port strike; hurricanes Helene, Francine, and Milton; the Francis Scott key Bridge collapse in Baltimore Harbor; the CrowdStrike cyber attack; and Red Sea missile attacks on passing cargo ships.
“While 2024 was characterized by frequent and overlapping disruptions that exposed many supply chain vulnerabilities, it was also a year of resilience,” the Project44 report said. “From labor strikes and natural disasters to geopolitical tensions, each event served as a critical learning opportunity, underscoring the necessity for robust contingency planning, effective labor relations, and durable infrastructure. As supply chains continue to evolve, the lessons learned this past year highlight the increased importance of proactive measures and collaborative efforts. These strategies are essential to fostering stability and adaptability in a world where unpredictability is becoming the norm.”
In addition to tallying the supply chain impact of those events, the report also made four broad predictions for trends in 2025 that may affect logistics operations. In Project44’s analysis, they include:
More technology and automation will be introduced into supply chains, particularly ports. This will help make operations more efficient but also increase the risk of cybersecurity attacks and service interruptions due to glitches and bugs. This could also add tensions among the labor pool and unions, who do not want jobs to be replaced with automation.
The new administration in the United States introduces a lot of uncertainty, with talks of major tariffs for numerous countries as well as talks of US freight getting preferential treatment through the Panama Canal. If these things do come to fruition, expect to see shifts in global trade patterns and sourcing.
Natural disasters will continue to become more frequent and more severe, as exhibited by the wildfires in Los Angeles and the winter storms throughout the southern states in the U.S. As a result, expect companies to invest more heavily in sustainability to mitigate climate change.
The peace treaty announced on Wednesday between Isael and Hamas in the Middle East could support increased freight volumes returning to the Suez Canal as political crisis in the area are resolved.
The French transportation visibility provider Shippeo today said it has raised $30 million in financial backing, saying the money will support its accelerated expansion across North America and APAC, while driving enhancements to its “Real-Time Transportation Visibility Platform” product.
The funding round was led by Woven Capital, Toyota’s growth fund, with participation from existing investors: Battery Ventures, Partech, NGP Capital, Bpifrance Digital Venture, LFX Venture Partners, Shift4Good and Yamaha Motor Ventures. With this round, Shippeo’s total funding exceeds $140 million.
Shippeo says it offers real-time shipment tracking across all transport modes, helping companies create sustainable, resilient supply chains. Its platform enables users to reduce logistics-related carbon emissions by making informed trade-offs between modes and carriers based on carbon footprint data.
"Global supply chains are facing unprecedented complexity, and real-time transport visibility is essential for building resilience” Prashant Bothra, Principal at Woven Capital, who is joining the Shippeo board, said in a release. “Shippeo’s platform empowers businesses to proactively address disruptions by transforming fragmented operations into streamlined, data-driven processes across all transport modes, offering precise tracking and predictive ETAs at scale—capabilities that would be resource-intensive to develop in-house. We are excited to support Shippeo’s journey to accelerate digitization while enhancing cost efficiency, planning accuracy, and customer experience across the supply chain.”
Donald Trump has been clear that he plans to hit the ground running after his inauguration on January 20, launching ambitious plans that could have significant repercussions for global supply chains.
As Mark Baxa, CSCMP president and CEO, says in the executive forward to the white paper, the incoming Trump Administration and a majority Republican congress are “poised to reshape trade policies, regulatory frameworks, and the very fabric of how we approach global commerce.”
The paper is written by import/export expert Thomas Cook, managing director for Blue Tiger International, a U.S.-based supply chain management consulting company that focuses on international trade. Cook is the former CEO of American River International in New York and Apex Global Logistics Supply Chain Operation in Los Angeles and has written 19 books on global trade.
In the paper, Cook, of course, takes a close look at tariff implications and new trade deals, emphasizing that Trump will seek revisions that will favor U.S. businesses and encourage manufacturing to return to the U.S. The paper, however, also looks beyond global trade to addresses topics such as Trump’s tougher stance on immigration and the possibility of mass deportations, greater support of Israel in the Middle East, proposals for increased energy production and mining, and intent to end the war in the Ukraine.
In general, Cook believes that many of the administration’s new policies will be beneficial to the overall economy. He does warn, however, that some policies will be disruptive and add risk and cost to global supply chains.
In light of those risks and possible disruptions, Cook’s paper offers 14 recommendations. Some of which include:
Create a team responsible for studying the changes Trump will introduce when he takes office;
Attend trade shows and make connections with vendors, suppliers, and service providers who can help you navigate those changes;
Consider becoming C-TPAT (Customs-Trade Partnership Against Terrorism) certified to help mitigate potential import/export issues;
Adopt a risk management mindset and shift from focusing on lowest cost to best value for your spend;
Increase collaboration with internal and external partners;
Expect warehousing costs to rise in the short term as companies look to bring in foreign-made goods ahead of tariffs;
Expect greater scrutiny from U.S. Customs and Border Patrol of origin statements for imports in recognition of attempts by some Chinese manufacturers to evade U.S. import policies;
Reduce dependency on China for sourcing; and
Consider manufacturing and/or sourcing in the United States.
Cook advises readers to expect a loosening up of regulations and a reduction in government under Trump. He warns that while some world leaders will look to work with Trump, others will take more of a defiant stance. As a result, companies should expect to see retaliatory tariffs and duties on exports.
Cook concludes by offering advice to the incoming administration, including being sensitive to the effect retaliatory tariffs can have on American exports, working on federal debt reduction, and considering promoting free trade zones. He also proposes an ambitious water works program through the Army Corps of Engineers.