Pallet Storage Methods in the Warehouse That Optimize Space

ARTICLE UPDATED ON JUNE 29, 2023

Pallet Storage Methods in the Warehouse that Optimize Space

Warehouses and fulfillment centers face extreme pressure to operate seamlessly while keeping up with consumers’ growing demand. To streamline processes, many fulfillment centers are implementing solutions that include automated systems, lean warehousing principles, and warehouse robotics. Facility managers can also boost optimization by implementing appropriate pallet storage methods. This doesn’t just save space on the floor, but can also cut back on energy costs, streamline labor efforts, ensure workers’ safety, and reduce an enterprise’s Total Cost of Business (TCOB). There are numerous methods for warehouse space management to consider, and supply chain managers should familiarize themselves with the top options to arrive at the best possible choice. 

Common Pallet Storage Methods in the Warehouse

A pallet storage method involves the process by which a warehouse stores their inventory in the most appropriate way. This is vital, because when it is not done effectively, it can lower productivity, damage goods, and have other costly consequences. 

Pallet storage methods in the warehouse and distribution centers will differ based on the industry and whether a first-in, first-out (FIFO) or last-in, first-out (LIFO) approach is needed. FIFO methods are typically best for time-sensitive storage of perishable products, while LIFO methods are better for high-density storage situations. Throughout the industry, we can encounter a variety of systems and approaches:

 

Type	Description/Use	Pros	Cons
Automated Storage and Retrieval Systems	Often used by very larger distribution centers, automated storage and retrieval systems are designed to maximize space.	Allows warehouses to maximize space Brings the speed and safety benefits of automation	High cost to implement
Block stacking	Block stacking is a very basic form of pallet storage in which loaded pallets are stacked on top of each other and organized into lanes. This method is typically best when there are minimal pallets to store and little time to manage them.	Often considered the least expensive option Requires no specialized equipment Relatively easy to manage	Limited vertical space utilization Requires large areas for lifting and moving pallets Stacks can be dangerously unstable if pallets are not in good condition Pallets must be accessed in a LIFO manner
Stack racks	Decks and posts create racks for holding pallets. Stacking frames can hold overflow pallets during busy periods. Stack racks work well for warehouses with high ceilings.	Ideal for pallets of products that cannot be directly stacked on top of each other Allows for greater vertical space usage Stacks can be moved as a single unit Durable and portable	Pallet access is limited Honeycombing– in which available space isn’t efficiently used– can occur  Has a higher upfront cost due to necessary racking components
Single deep pallet racking	This is an extremely common form of pallet storage that allows managers to access all the pallets in a rack, as the pallets each have their own individual space. This method is a particularly popular option in distribution centers.	Can easily be reconfigured to maximize warehouse space Forklift operators can reach pallets from multiple sides  Allows unrestricted access to every pallet  Relatively inexpensive	Single deep configuration limits space savings Significant floor space is needed for aisles Leaning and crushing risks occur if not properly implemented
Double deep pallet racking	Double deep racking expands on a single deep configuration with back-to-back pallet rows. These are particularly good configurations for high-density warehouses.	Improved cubic space utilization Fewer aisles are needed  Can be easily reconfigured to increase storage space	Limited access to rear pallets. Rear pallets are only accessible once front pallets are empty
Gravity flow pallet rack	This high-density storage system is ideal for distribution centers where automation is favored. It stores pallets multiple layers deep, improving cube utilization.	Less labor needed as pallets flow from back to front on rollers Minimal aisle frontage required due to high-density setup Excellent for drug and food supply chains where maintaining a FIFO system is vital	Minimal access to pallets Specialized equipment, like rollers and racks, is necessary Initial implementation can be expensive
Drive-in rack	In this system, forklifts drive directly into the racking setup to retrieve pallets. This method is ideal for high-density situations where products stored are identical.	Extremely dense and makes use of all available space The proximity of pallets makes it ideal for temperature-controlled products Strong, durable shelf structure	Requires specialized equipment and trained personnel Only supports LIFO storage due to its dense configuration  Not ideal for time-sensitive products like pharmaceuticals
Push back rack	Push back racks combine high-density storage with selection abilities by providing a static rack structure with carts that move along rails.	Dense storage capabilities Pallet selection is simplified Works with a single-aisle design	LIFO system makes this less ideal for time-sensitive products  Storage is limited to four or five pallets deep Can be expensive to implement

These storage methods are primarily designed for handling loaded pallets, but most facilities will also need to consider storage for empty pallets. Extra pallets may be needed for peak times of the year but otherwise sit unused, taking up space year-round. Fortunately, there are numerous methods for storing idle pallets. One approach is to reduce the number of pallets your facility must store in the first place — by switching from an owned pallet fleet to a more efficient pallet pooling model. .

Leveraging Pallet Pooling as a Space Saver

Pallet pooling allows supply chain managers reduce the expense and headaches of transporting, storing, and maintaining empty pallets. Since pallet pooling is a leasing system in which pallets are rented rather than owned, managers can adjust supply as needed. Storing fewer empty pallets allows logistics planners to free up both facility and truck space for inventory, rather than transporting and storing large amounts of idle assets.

Pooled plastic pallets, offer a particular slew of advantages that make virtually any pallet storage method safer and more effective. Plastic pallets move along rails and roller racks more easily than wood-block pallets, and will not shed nails and create splinters that might clutter facilities and damage equipment. Plastic pallets are also less likely to fail and cause obstructions within high-density storage systems, which might require a time-consuming manual intervention to fix. Finally, plastic pallets are lightweight (but just as strong as wood) and easy for employees and equipment to handle, reducing employee injuries and machinery wear and tear. Combined, these advantages increase throughput and efficiency while reducing product damage and the risk of injury.

Whether you use gravity flow racking or block stacking, partnering with a plastic pallet pooling company can increase the efficiency of a warehouses pallet storage method and reduce the number of idle pallets your facility must store at any given time. As a result, managers can reduce their total cost of business while making the most of their facility space. 

Companies looking to streamline their pallet storage method use iGPS plastic pallets, which are lightweight, recyclable, and help streamline your supply chain. For more information, contact us at 1-866-557-0047, email a specialist at switch@igps.net, or visit our contact page.