BlogSupply Chain TechnologyWarehouse racking systems

The average cost of designing and building a warehouse or a logistics center in the U.S. can be anywhere between $100-$117 per square foot. For businesses, the steep construction costs need to be justified by better inventory management. The benefits of pallet racking address these very concerns by improving warehouse space management. This, in turn, contributes to lowering the total cost of ownership (TCO) or total cost of business (TCOB) across the supply chain.       

Why Your Warehouse Needs a Pallet Racking System

Plastic pallet on push-back rackingPallets are one of the major components in a supply chain and can significantly impact the outcome of a shipment. The way both loaded and empty pallets are stored in warehouses can influence the efficiency of overall supply chain operations, and the ease of installing and using different types of pallet storage methods can greatly improve the profitability and productivity of these warehouse operations. The following are the benefits of pallet racking that can increase the cost-efficiency of your warehouse:  

Optimizing Warehouse Space

In conventional warehouses, a significant percentage of floor space is reserved for the safe passage and access of forklifts in the aisles. This empty floor space can be optimized by installing a pallet racking system that offers maximum square footage with vertical storage of pallets. With improved cubic space utilization through racking systems such as a double deep pallet racking, fewer aisles are needed in a warehouse.   

Increasing Bulk Storage Capacity

In warehouses with deep inventory needs, a pallet racking system increases bulk storage capacity. The push back pallet racking system offers a static rack structure with carts to move along the rails that increase storage capacity for the high density of product stock-keeping units (SKUs). With the help of drive-in or drive-through pallet racks, bulk storage in each row reduces the total number of aisles required to reach the products.  

Implementing Different Inventory Control Methods

Inventory management practices are specific to the type of products being handled. Whether it is first-in, first-out (FIFO) or first-expired, first-out (FEFO) for time-sensitive perishable products, different pallet racking systems complement a variety of inventory control methods. Further, the digital tracking of products becomes easier with pallet racks installed in high-density automated warehouse storage.   

Customizing Warehouses

The different configurations of pallet racking systems integrate well with a warehouse’s infrastructure. This, in turn, helps customize warehouses as per the requirements of the supply chain management.

Improving Warehouse Safety

For businesses, providing a safe work environment for employees across warehouses is of prime importance. Pallet racking systems offer a robust warehouse storage solution that helps businesses comply with the Occupational Safety and Health Administration (OSHA) guidelines for employee safety. 

While installing these pallet racking systems in a warehouse, it is important to ensure the durability of pallets so that they are less likely to fail and stall warehouse operations. That is why a growing number of logistics managers are opting for high-quality plastic pallets over the widely used wood pallets that often get damaged during handling and transport.  

Benefits of Pallet Racking with Sturdy and Rackable Plastic Pallets

Plastic pallet to support warehouse rackingHigh-quality and lightweight plastic pallets maximize the benefits of pallet racking. The following are the advantages of using plastic pallets that complement pallet racking systems better than the traditional wood pallets:

  • Unibody construction: The unibody construction of plastic pallets without any stray splinters or protruding nails on the surface help these pallets travel smoothly along rails and roller racks with minimal jamming of the roller mechanisms. 
  • Non-porous surface: The non-porous surface of a plastic pallet does not absorb moisture and restricts the growth of bacteria and other contaminants on product packages, thereby providing a cleaner environment in storage facilities. 
  • Durability: The sturdy and rackable plastic pallets often contain Radio Frequency Identification (RFID) chips to digitally track products in high-density storage systems. 

In warehouses, logistics managers are not only concerned about keeping loaded pallets in racking systems but also managing the empty pallets that need to be stacked inside the warehouse without causing any safety hazards. Pooling pallets rather than purchasing an entire fleet of pallets reduces the space taken up by these empty pallets in the warehouse. With a third-party looking after the supply, maintenance, and retrieval of pallets from their end destinations, the overall cost-efficiency of warehouse operations increases. 

As plastic pallets are durable enough to move across the supply chain many times without getting easily damaged, it makes them ideal for pooling. Renting plastic pallets from a common pool allows managers to store only the pallets needed at any given time, thereby further optimizing the warehouse floor space. 

 iGPS plastic pallets can support the different pallet storage methods in your warehouse while helping you optimize the floor space through a pallet pooling program. To switch to a shipping platform that maximizes the benefits of pallet racking, give our team a call at 1-800-884-0225, email a specialist at [email protected], or visit our contact page.