Aside from optimizing storage space, implementing advanced warehouse racking systems brings a wide array of advantages for inventory management and supply chain efficiency. The benefits of warehouse racking can be measured not only in terms of maximizing cubic storage, but also by reducing operational costs, improving warehouse layout, minimizing downtime, and supporting higher throughput. Companies installing modern industrial shelving, pallet racking, and storage rack systems often experience significant savings on leasing additional warehouse space, reduced workforce effort through improved accessibility, and a measurable increase in order processing speed. Additionally, ensuring compliance with OSHA safety standards and robust warehouse management protocols—while not always yielding immediate ROI—adds long-term reliability and value by reducing workplace accidents and product loss. Below are some of the key benefits of implementing a warehouse racking system:
Efficient storage space utilization: As mentioned earlier, racking takes advantage of the available vertical space that is otherwise unused. Warehouses that are designed to accommodate racks are constructed with high ceilings to allow racks with higher bays, such as drive-in racking and very narrow aisle (VNA) pallet racking systems. This maximizes floor space and increases density, which is especially valuable for industries managing seasonal or high-turnover stock.
Easy inventory organization: Racks can be addressed easily in comparison to stockpiling. Storing goods with many distinct varieties is virtually impossible with stockpiling without consuming large floor spaces. A type of racking system known as selective racking allows storing different types of goods while keeping the consumed space to a minimum. Inventory tracking via a Warehouse Management System (WMS) is also more accurate when items are systematically organized on shelves and racks, supporting better SKU control, batch management, and FIFO/LIFO picking strategies.
Before investing in a racking system, it's important to consider several factors to assess the project's viability. Although racks optimize space, they also occupy some of it with their frame and accessories. One significant drawback is the difficulty in modifying or reconfiguring the system once installed. To maximize your investment, keep the following points in mind:
Available Storage Space: The first step is to assess how much space is available for constructing storage racks and if the warehouse layout permits such construction. It is important to note that for an existing warehouse, the whole floor area may not be utilized. Racking systems available in the market usually come in standard sizes. Also, the structure of the racking itself takes up storage space. Thus, the desired storage density may not be as expected. In some cases, warehouse features such as walls, partitions, and doors must be modified to accommodate a racking system.
Vertical Clearance: Aside from the available horizontal space, also assess how much vertical space can be utilized. Available vertical clearance directly influences the storage racking density. Adding one or two layers to an existing three-layer pallet stack can even decrease the storage density due to less utilization of the floor area. Racking systems that take advantage of vertical slopes, such as gravity flow systems, can further decrease the storage density by removing a layer to accommodate the required slope. Moreover, it is important to take note of the required clearances for fire suppression systems and obstructions for airflow. Elevating the stack height may defeat the design features of these systems and may call for modifications that further add to the initial cost of the project.
Unitized Load Dimensions: After taking into account the available space and its restrictions, next comes the consideration of the shape and size of the pallets to be stored. The racking system must be designed specifically according to the form of the palletized load. For production lines that produce unitized loads with varying sizes, one may consider the pallet with the largest dimensions. This allows greater flexibility once there is a need to store more of that particular product.
Load: The frame must be able to support the pallet load by selecting the appropriate material. Most racking systems are made of steel but are created through different manufacturing methods. For lighter loads, cold-rolled steel is sufficient. On the other hand, heavy-duty applications require structural steel that is formed through hot rolling or extrusion.
Selective pallet racking is designed for high SKU counts but offers lower storage density. It is often visualized as large shelves with space for a single row of items. Although racks can be arranged back-to-back to enhance storage density, the overall density remains low due to the space occupied by aisles. This type of racking is commonly used in warehouses for raw materials, parts storage, and distribution centers where there is a wide variety of products in low volumes. Selective pallet racking can be combined with other racking types to handle SKUs with higher volumes. Key benefits include flexibility for FIFO and LIFO inventory management, compatibility with standard forklifts, ease of cleaning and inventory management, and straightforward construction that allows for easy reconfiguration. Selective racking also features various frame and beam connection designs, including teardrop and slotted racks.
Double-deep pallet racking is an enhancement of standard selective racking, where each pallet shelf holds two rows of pallets instead of one. This modification increases storage capacity by 40-60% while retaining many of the benefits of traditional selective racking. For FIFO inventory management, adjacent rows must contain the same SKU, which improves storage density but reduces selectivity. A notable disadvantage is the requirement for specialized forklifts or standard forklifts equipped with double-deep handling attachments, leading to higher operating costs and the need for well-trained operators.
The concept of very narrow aisle (VNA) racking is to enhance space utilization while maintaining 100% selectivity, building upon the standard selective racking system. This is achieved by using a side-loading forklift, which allows pallets to be loaded and unloaded without the need for wide aisles. By minimizing aisle space, VNA racking can reduce the aisle width by up to 40%. However, a drawback of this system is the requirement for two types of equipment: a side-loading forklift for accessing the racks and a standard forklift for transporting pallets between the palletizing station and staging area.
Warehouse racking, also known as storage or pallet racking, is a material handling system suitable for mass storage of goods unitized on skids or pallets. This allows for efficient utilization of space while providing easy access to stockpiled items for better inventory control.
Some of the benefits of racking systems are efficient space utilization, easy inventory organization, fewer damaged goods, increased employee productivity, automation, safety, and cleanliness.
Important factors to consider before investing in a racking system are the available floor area and vertical space, pallet load weight and dimensions, target capacity, throughput, number of SKUs, type of inventory management, and cost.
Racking with high selectivity and low density are selective, double deep, and very narrow aisle racking systems. High-density applications are push-back, drive-in, and pallet flow.