4 Ways to Improve Warehouse Space Utilization

4 Ways to Improve Warehouse Space Utilization

Dec 15, 2022

As pressures from consumers create the need for quicker turnaround and fulfillment strategies, distributors plan to add more space. More space is a great step towards meeting the needs of the on-demand marketplace, but the real challenge comes when optimizing the use of that space. Poor layout and space utilization can drive up costs and be a result of incomplete visibility. Here are some challenges of managing warehouse space that can harm overall warehouse productivity:

  • Longer distances between similar SKUs
  • Poor item identification that leads to inaccurate inventory
  • A disorganized layout that leads to congested areas and longer travel times


Warehouses must implement solutions that meet the demands for faster and more accurate shipping in a new space, but also meet consumer demands for more sustainable warehousing. Surveys suggest that 75% of U.S. consumers are concerned about the environmental impact of the products they buy. To combat this, this means implementing technology that increases visibility and provides the intelligence and flexibility to navigate warehouse needs. Studies show that 80% of organizations are planning to invest in new technologies by 2024. Without a plan to implement dependable warehouse solutions and create supply chain sustainability, businesses could lose productivity and harm the environment. Ultimately, an unproductive and unsustainable warehouse loses more money spent on materials and can’t control costs. When you think about optimizing space utilization in your warehouse, consider these tips:


  1. Reduce energy consumption and automate inventory tracking - Smart warehouse automation solutions like ENTERPRISE ROBOTICS reduce the time workers spend walking around and accurately track stock with real-time data access. Robots operate on low energy consumption and speed up shipments to meet the demands of today’s economy.  
  2. Minimize interruptions and establish smoother workflows - A network monitoring system can enhance your enterprise network to make sure warehouses are properly communicating. Experienced network engineers can fortify network strength to make warehouse workflows smoother and less congested. A stronger network leads to uninterrupted productivity and fewer wasted devices.
  3. Deliver complete traceability to reduce surplus stock - Paired with robotics, RFID and IoT devices can ensure that items are properly identified to improve inventory accuracy. Accurate stock levels reduce surplus stock that comes from overstocking to free up warehouse space and cut down on waste. REAL-TIME TRACKING WITH RFID devices can help distributors achieve inventory visibility to optimize space utilization.
  4. Analyze your space - If you haven’t already, study the areas of your warehouse to determine which areas you are underutilizing from a space standpoint. An example of this is that some warehouses measure the height of ceilings and products to make the best use of space.


Smoother workflows, reduced energy consumption, and complete traceability can help warehouses optimize space and maintain eco-friendly operations to satisfy customers. Gain More INSIGHT about how you can boost supply chain sustainability and warehouse management with Heartland.