Quality warehouse racking is essential for peak storage and organization. Inefficient systems can lead to significant issues like employee turnover, premature expansions and misplaced inventory. Correctly placed warehouse racking can improve workplace safety and help align with Occupational Safety and Health Administration (OSHA) regulations.
Read on for the hidden costs of inefficient warehouse racking and how you can make changes to improve racking systems.
Employee Productivity and Safety
Poor warehouse racking layouts can bring hidden costs. Here are some ways they affect productivity and safety:
High Employee Turnover
Poor racking layouts can cause unclear processes, and the equipment may be inadequate to handle potential hurdles. This setup can increase stress for employees, leading to a higher turnover rate. Frustrating layouts can further impact workplace culture, resulting in disgruntled employees.
Medical expenses resulting from workplace injuries are another potential cause of a high employee turnover rate. Poor racking layouts can be unsafe, putting workers at risk of injury and increasing the chances of property damage and workers’ compensation claims. Companies can mitigate these risks by investing in equipment maintenance, safety training and proper racking layouts.
Increased Error Rates and Inefficiency
Inefficient warehouse racking, due to its impracticality and limited functionality, can cause more errors. Paired with poor inventory management, it can cause consistent pacing and picking errors, which could result in more dissatisfied customers. A well-organized pallet racking system can create more warehouse floor space and reduce obstacles to enhance productivity and reduce frustrations.
Here are some ways poor racking layouts can cause more errors:
- Restricting access: Workers might grab the wrong products if the racks are difficult to reach or complicated to use due to poor design.
- Overcrowding racks: Inefficient warehouse racking can cause workers to overload the racks, which increases the possibility of misreading labels or losing sight of items.
- Confusing layout: A disorganized layout can cause confusion, resulting in picking or stocking errors. Workers might put the products in the wrong locations, leading to more confusion and mistakes.
- Time-consuming process: A poor racking layout can cause disorganization and make the product retrieval process more time-consuming. Disorganized inventory affects employees’ productivity and adds more steps to the retrieval process.
- Labeling inaccuracies: Inefficient warehouse racking can make it challenging for workers to identify and label products correctly, calling for higher time demands and leading to more errors.
Increased Safety Risks
Poor warehouse racking can lead to serious consequences like injuries and insurance claims. According to the Occupational Safety and Health (OSH) Act, employers must ensure that the workplace is free of recognized hazards that are likely to cause death or serious harm to their employees. The most common warehouse injuries are musculoskeletal disorders, as a result of overexertion in lifting and lowering.
Inefficient racking layouts can hold structural issues that could cause buckling under heavy loads and collapsing shelves. These issues make workplace duties more challenging for employees and increase the risk of injuries.
Space Utilization and Expansion Costs
Poor racking setups waste valuable space, which can lead to wasted resources on premature expansions and additional facilities. Inefficient racking can have a ripple effect that causes poor warehouse management and employee frustrations. It can also violate general OSHA requirements for storage, which may pose safety risks for workers.
The top strategies to maximize space while still maintaining a safe workplace include:
- Optimize picking routes: Use rack storage systems focused on increasing storage efficiency. Apply strategies according to employees’ typical paths when they fulfill orders or bring inventory in.
- Use narrow aisle storage systems: Conventional rack storage systems require a 12-foot aisle width. However, if a business has access to reach trucks and order pickers, it can utilize narrower aisles to use the space more effectively.
- Designate specific zones: Creating specific zones for different product categories and tasks can help streamline operations and make the most of the space. It also provides guidance to workers and enhances productivity.
- Clear pathways: Cluttered pathways can cause slips and falls and affect productivity. Ensure pathways are kept clear to prevent accidents and optimize available space.
- Use vertical space: Install tall shelving and mezzanine systems to maximize your cubic feet. By making use of underutilized vertical space, you can get more storage without a costly expansion overhead.
Inventory Damage and Shrinkage
Poor warehouse racking can cause a ripple effect on shrinkage, product quality and misplaced inventory. Here’s how inefficient racking impacts inventory damage and shrinkage:
Employee Theft
Inefficient warehouse racking can lead to inventory loss in many forms, but internal threats like employee theft can be particularly detrimental. Employee theft can cause inventory shrinkage that’s hard to track since they may have intimate knowledge of the systems. It causes significant financial loss and has a negative effect on company culture.
Employee theft can cause a culture of suspicion and wasted resources, but it can be reduced with a well-organized racking system. Efficient warehouse racking can build transparency and discourage stealing or secretive behaviors.
Misplaced Inventory
Disorganized warehouse racking can lead to misplaced inventory, which makes it difficult or even impossible to locate items. Staff are more likely to place items in the wrong location, leading to fewer sales and reduced customer satisfaction.
Product Damage
Poor warehouse racking can lead to product spoilage, which is one of the top causes of inventory shrinkage. The damage can be especially costly with valuable or fragile items. Damaged goods can lead to deterioration and inadequate warehouse conditions that can cause spoilage-related discrepancies and affect customer satisfaction.
How to Improve Warehouse Racking Systems
Improving racking systems can keep products in optimal conditions, increase productivity and boost customer satisfaction. Some of the top warehouse efficiency improvements include:
- Weight-load considerations: Implement pallet and rack fixtures that align with the typical product dimensions. This step can prevent product spoilage and increase storage capacity.
- Layout enhancements: Use the vertical space to free up more floor space for improved productivity and distribution.
- Storage improvements: The storage systems should be suitable for the type of inventory. For example, products prone to spoilage may call for cold storage systems.
Finding the best warehouse racking solution is essential to a business’s overall success, as product quality and warehouse productivity trickle down to every area. Maintaining a productive and safe facility can help improve employee retention, boost efficiency and reduce inventory loss. Tennessee Rack can help replace or install new warehouse racking that suits the inventory and business needs.
Get Warehouse Racking Solutions From Tennessee Rack
Are you looking to improve your warehouse racking solutions for maximum productivity, reduced spoilage and better space utilization? Tennessee Rack provides durable, convenient racking systems for warehouses on a speedy timeline. We can design and install a system for you, whether you need a 100,000-square-foot depot or a few racks for a supply room.
Our team has the expertise to install pallet racks that comply with regulations, helping you maintain a safe facility. If you’re looking for pallet rack solutions that make the most of your warehouse space, Tennessee Rack has you covered. With our vast range of in-stock inventory, we deliver most of our orders within 48 hours.
Contact us to learn more about our pallet racking systems and request a quote to set up your ideal warehouse storage needs.