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WAREHOUSE REPORT | STORAGE


DENSER IS SMARTER


Warehouses are in short supply, and the way we use them means the value of the space inside is increasing. So denser storage is the smartest way to increase the value of the space you have, writes Johanna Parsons.


closer to home, everyone wants logistics and industrial property. And it’s not just the demand for such property that has increased its value, but the way we use it. The past few years have brought supply chain risk to the forefront of many business strategies, and keeping more stock closer to hand is a compelling proposition, which is just one of the factors increasing demand for warehousing space. Warehouses are often affectionately


W


referred to as sheds, and while storing stuff until you need it remains a key function, they are now more appropriately described as distribution centres or even intralogistics hubs. The trend for near-shoring operations from pick and pack to value-add services closer to consumers speeds fulfilment and minimises risk. This increases demand for


arehouse space is at a premium. From growing businesses to those looking to keep stock


space but it also requires that space to do more than just storage. Steve Purvis, managing director at consultancy Bis Henderson Space, says that “businesses are seeking improved speed to market, to offer consumers ever-shorter lead times and higher levels of availability across increasingly customised and individualised product ranges, both flexibly – because consumer demand is now so rapidly changeable – and sustainably”. He describes this as a trend for ‘postponement’ – carrying out final assembly and finishing in the warehouse in response to firm orders rather than at the factory for stock. “The demand for warehouse space that can efficiently support quasi-manufacturing operations and workforce will therefore increase at the expense of ‘basic sheds’,” says Purvis. So if the days of basic sheds are


numbered, optimising storage into denser configurations is an obvious but vital way of creating space that can be used to increase volumes or indeed to support more complex warehousing operations. “Dense stock holdings can optimise


storage space, potentially reducing warehousing costs,” says Ed LaBruna, partner at Janus Automation . He points out that dense storage also


addresses the growing demand for extra intralogistics services: “Additionally, efficient stock density can streamline order picking and packing processes, enhancing overall operational efficiency.” Reconfiguring storage is an easier way


Ed LaBruna of Janus Automation.


to increase capacity than expanding your footprint by moving or extending your warehouse or distribution centre. So dense


xx | November 2023 | Overhead Crane Material Handling Industry Supplement


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