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How Can We Improve Warehouse Efficiency?

Article added Thursday May 19th, 2016

warehouse storageBottlenecks, failure to ship the correct order on time, excess time is taken to locate goods. These are some of the reasons why you might be in need of new warehouse storage techniques.

If you’re not experiencing any serious problems but want to improve overall efficiency then tackling issues at the warehouse level can reap major benefits.

In need of any help on how to fully utilise staff and assets? Feel free to give us a call on 0800 085 8117 or complete an Enquiry Form on our Contact Us page.

Rearrange warehouse layout

A key thing to look into is your warehouse layout. Keep efficiency in mind and draw up a plan of how the warehouse needs to be arranged to best serve the business. Drawn the plan as though you’re looking down, keeping the following in mind:

  • Entrances and exits
  • Type of storage (such as pallet racking or stacking)
  • Possible issues such as health and safety
  • Outdoor storage options

Group similar items together and establish material flow paths. By keeping similar goods together you may reduce the time taken when collecting goods to be despatched. If certain items differ but are commonly dispatched together you might want to keep them side by side.

Material flow paths show the flow of materials around the warehouse; where they come in, where they are stored, where they are stored prior to dispatch and where they leave the warehouse. By charting the flow of good around your warehouse, you will be able to recognise things such as health and safety issues, places where possible bottlenecks might happen as well as any distances which can be reduced.

Also, take into account replenishment factors. Does some stock need replenishing more often than others? Is your layout best suited to the actual tasks that need to be carried out to keep the warehouse running super efficiently?

Types of storage

The type of storage you opt for can be one of the key differences you can make and can help you to store goods close to dispatch points where currently you need to travel a further distance. There are a number of different storage systems available which can be combined under one roof for ultimate storage capacity.

Pallet racking systems are common and highly efficient storage units which come in a variety of sizes. Racking is best suited for items that are kept in the medium to long term within a warehouse.

Stacking goods loosely on top of each other can be a good fix and best suits products that need a quick dispatch.

Other less well-known types include:

A lesser used option for maximising pallet racking space. Tunnels are like bridges between sets of racking on which goods can be stored.

Like tunnels, but allows for storage over spaces such as entrances. This could prove to be a very efficient means of reducing time is takes to bring goods to loading areas.

Add an extra layer of flooring for storage.

For different types of shelving, see our guide to choosing shelves

For different types of warehouse storage systems, see this guide.

Cross docking

Cross docking can refer to unloading from a vehicle straight into another without the need for storing in-between. This might suit some businesses though you might opt for the other type of cross docking where goods are unloaded then checked or processed and perhaps broken down or stored in stacks before being loaded onto another vehicle. This option might save the work of moving goods to pallet racks and back again.

Perhaps the timing of goods in and goods out could be matched so you don’t need to use longer term storage?


Once your floor plan is complete you may want to draw up procedures to make common, or all processes, super efficient. Procedures for dealing with incoming goods down to cleaning can give a boost to getting your warehouse running more smoothly. It will also help you foresee possible issues.

Accident preparation

We would also recommend taking this time to consider accidents or clearing spillages or fixing damages.

How can this be done while maintaining maximum efficiency? Do people need to travel a long way to find spillage soaking materials for instance? Make sure this type of equipment is placed at key junctions or near to places where you think a spillage is most likely to take place.

If certain people need to react and work to resolve a situation, make sure they are trained and know what to do to get things back up and running as quickly as possible.

Maintenance and good housekeeping

Once your plans are in place, make sure you maintain good standards and pencil in time to review and evaluate the effectiveness of your plan.

Maps, signs and labels

Your floor plan can be posted in every convenient place in the warehouse to help minimise the time it takes for workers to check locations. Keep one in the wall of the break room so that remembering where everything is located can be absorbed as much as possible. Try colour coding to improve effectiveness and always keep them up to date.

Signs to clearly mark what area workers are in and what goods are stored can further help speed up the job. Arrows pointing the direction of key goods that are handled most often may also be a good idea.

Labels are another key technique to increase efficiency. Use stickers, paper inserts or more permanent signs to help people identify goods. This can be done by product name, number, category or any way you deem to be best for your business.

Maximise warehouse, retail or office space – Give us a call on 0800 085 8117 or fill in our contact form to let us know how we can help.