What Are the Reasons for Low Warehouse Utilization?

As the e-commerce industry continues to grow, the demand for order fulfillment warehouses is also growing. Especially for merchants with multiple sales channels, how to fulfill orders quickly and accurately and improve customer satisfaction has become an important issue they face.

When owning or using a third-party warehouse, you often find that although the warehouse is large, the actual available storage space is smaller than expected. This is a common challenge faced by many businesses to effectively manage warehouse space.

Why is the warehouse utilization rate low?

Warehouse layout issues

The layout of the warehouse may not be reasonable, causing the storage and retrieval of goods to be affected. For example, improper arrangement of shelves, too narrow aisles, irregular stacking of goods, etc. will lead to a decrease in the effective use area of the warehouse.

Cargo storage issues

When storing goods, the size, weight and storage needs of the goods may not be taken into account, resulting in insufficient storage space for the goods. For example, some goods may require specific storage conditions (such as temperature, humidity, etc.), and the warehouse may not be able to meet these requirements, limiting the storage of the goods.

Warehouse management issues

The management of the warehouse may also affect the utilization of warehouse space. For example, a lack of effective inventory management, storage planning and cargo tracking can lead to wasted warehouse space.

How to efficiently utilize order fulfillment warehouses?

Divide specific work areas

Divide the warehouse into specific work areas, such as picking, unloading and packaging areas, so that employees can complete their work quickly and easily.

Optimize warehouse layout

Make sure the doors in the warehouse open outwards to facilitate quick evacuation in an emergency. Make rational use of the effective area of the warehouse to improve space utilization.

Establish an effective warehouse management system

Use a modern warehouse management system, such as using warehouse management software, barcode technology, etc., to improve the efficiency and accuracy of warehouse management.

Store goods reasonably

Choose the appropriate storage location and method based on the size, weight and storage needs of the goods. For example, for some special goods, special storage measures can be taken (such as using insulation facilities, moisture-proof measures, etc.).

Reasonable use of aisle space

Re-plan the warehouse layout, rationally arrange shelves, set aisles and cargo stacking specifications to improve the efficiency of the warehouse. On the premise of ensuring smooth passages, try to reduce the passage space in the warehouse so that the storage space can be used more effectively. At the same time, ensure that the stacking of goods does not affect the efficiency of employees in the warehouse.

Increase the stacking height of goods

On the premise of ensuring safety, reasonably increase the stacking height of goods to further optimize the use of storage space.

Make rational use of walls and shelves

Wrap the columns in the warehouse to prevent them from blocking access and improve space utilization.

Optimize the path of goods in and out of the warehouse

Ensure that the route of goods in and out of the warehouse is one-way and straight to reduce inefficient operations such as zigzag passages and reverse movement.

Convenient for loading, unloading and retrieval

Goods should be stored in a location that is convenient for loading, unloading, warehousing and retrieval to facilitate operations by employees.

Set up safety passages

The warehouse should set up separate safety passages, and ensure that debris cannot be piled in the passages to ensure rapid evacuation in an emergency.

Equipped with standard fire-fighting facilities

The warehouse should be equipped with standard fire-fighting facilities and ensure that the spacing between product areas complies with industry standards to ensure the safety of goods and employees.

Set up safety protection measures

Safety protection measures such as fire extinguishers, smoke alarm systems and anti-theft alarm systems should be set up in the warehouse to enhance protection against fire, smoke and theft.

Ensure air circulation

Set up ventilation and exhaust channels to ensure normal air circulation in the warehouse, which will help maintain a suitable humidity and temperature environment and help discharge harmful gases and smoke.

Simplify your supply chain with ChinaDivision

In the fast-paced world of e-commerce and global trade, efficient order fulfillment is the key to success. Whether you are a budding entrepreneur or an established business, choosing a reliable warehousing service provider can have a significant impact on your operations. One such company is ChinaDivision, a leading brand in warehousing solutions that has been helping companies around the world optimize their supply chain processes.

ChinaDivision leverages state-of-the-art technology to provide an advanced inventory management system that ensures real-time visibility into inventory levels, order processing and shipment tracking. From order processing to packaging and shipping, their comprehensive services cover the entire supply chain, allowing you to focus on growing your business.

Additionally, ChinaDivision's warehouses are strategically located at the center of China's manufacturing and trading activities, close to major ports and transportation hubs. It can provide faster transportation time and lower transportation cost. Whether you are a start-up with a small inventory or an enterprise with large orders, we can improve your competitive advantage in the global market.

Provide trustworthy warehousing solutions

Order fulfillment warehouses play an increasingly important role in the e-commerce industry, showing features such as automation, diversification, intelligence, and green environmental protection. In addition to basic warehousing and distribution services, the use of third-party outsourced warehousing services also provides a series of value-added services, such as inventory management, order tracking, data analysis, etc., to meet the different needs of merchants and customers. As the e-commerce industry continues to develop in the future, order fulfillment warehouses will continue to play an important role and continue to develop.

Don’t let inefficient logistics hold your business back. Contact ChinaDivision today and experience the difference of working with a trusted warehousing service provider. Your seamless order fulfillment journey starts here!