How To Maximize Warehouse Space For The Maximum Return on Investment?
If you run a warehouse or retail business, you already know how much space costs. This is especially true if you have a lot of inventory to store and keep track of. The last thing you want to do is spend tons of money on space that isn’t being put to good use. In this post, we’ll show you how to maximize warehouse space for the maximum return on investment
- What is warehouse space used for?
Warehouse space is used to store the products waiting to be sold.
According to Many Warehouse experts, you need approximately 4,000 square feet for Store A (the largest unit) and 3,000 square feet for Store B (the standard unit). Of course, you wouldn’t use every square foot of warehouse floor space.
Let’s say you have a 10 gallon elk drum sitting in Warehouse A. Many Warehouse expert reports a 10% occupancy rate for this 10-gallon container. Typically, 10% is the level that most businesses thrive at. You know your inventory is stored in the right place so you don’t have to worry about moving things or refilling your storage locker all the time.
How many Average Cost per Ounce (ACOV) containers are in your warehouse? On average, warehouse operations spend $300 to $500 per ACOV container.
Let’s assume you’ve got 12,000 gallons of product (enough for approximately 6,000 pallets) sitting in Warehouse A. According to…
