Bulk Storage vs. Rack Storage: Which Is Right for Your Warehouse?

Introduction

Deciding the right warehouse storage type is key to efficiently optimizing your warehouse operations. It not only affects the speed of order fulfillment but also influences the safety of your goods, the ease of inventory management, and overall operational costs.

The projected worth of the global warehouse racking market in 2022 was USD 9.02 billion, and it is anticipated to expand at a compound yearly growth rate (CAGR) of 4.1% from 2023 to 2030. This proves the increasing emphasis businesses are placing on effective and efficient storage solutions.

In this post, we will explore the features of bulk storage and rack storage, breaking down their distinct features and benefits to help you choose the optimal storage solution for your warehouse needs.

 

What is Bulk Storage?

Bulk storage is utilized for huge pallet numbers of the same SKU; the ideal density is often larger than 30 unit loads. It is the least expensive type of storage when there are few SKUs.

However, its capacity is restricted by the available space, the head clearance, and the capacity for stacking the unit loads. This applies if your product stacks 2, 3, or 4 high. Bulk floor storage is often selected as entire pallets and then subsequently transmitted for bulk shipping.

Before choosing warehouse storage solutions, ask yourself these three questions:

  • Can the pallets stack two, three, four, or more?
  • Is the product capable of bearing the weight of extra pallets without breaking
  • Will there be a single SKU in each stack or row? 

If you can affirmatively respond to each of these questions, bulk storage is ideal for you. It will help you optimize space, reduce costs, and maintain product integrity.

 

Significance of Bulk Storage

Bulk storage has been traditionally used for bulk shipping of heavy machinery. However, it also offers a number of advantages to e-commerce shipping and delivery, like the following:

  • Cost savings: Bulk storage makes it possible to store a large amount at once. It lowers the cost by minimizing recurring transport and handling requirements in case of bulk shipping.
  • Better organization and categorization: Items moving in large quantities are already categorized. It encourages more effective product processing and warehousing, enabling a seller to shorten transportation times.

 

What is Rack Storage?

Rack storage is the most basic storage option in warehousing. This is the best way to store goods that have more than 10 SKUs. In the world of eCommerce, racking is a simple approach to make use of your available space, locate your goods quickly, and maintain inventory.

Rack storage can be decked to accommodate various pallet sizes and types. It can be swiftly altered to accommodate loads with varying heights from one season to the next.

Are you confused about choosing warehouse storage solutions? Try answering the following questions:

  • Will your pallets require frequent movement and/or picking up before shipping?
  • Are your demands for time and storage expenses adjustable?
  • Do you have a wide selection of goods that will be available on different-sized pallets?

If your answer to each of the above questions is yes, consider rack storage options.

 

Significance of Rack Storage

Rack storage decreases the possibility of product damage, loss, and theft while increasing storage and retrieval efficiency.

Here are some more advantages of rack storage:

  • Maximise the storage space: These systems make it possible to store more things than using conventional storage techniques.
  • Better organization: Racking systems are created to maximize the use of available space and offer simple access to stored objects.
  • Lower handling expenses: These racking solutions make it possible to handle products effectively, which lowers handling costs.

 

How to Choose the Right Storage System?

Studies show that it is possible to eliminate up to 35% of warehouse unused space by determining the appropriate cell sizes to employ for your SKUs. This highlights how choosing warehouse storage solutions that match your specific requirements is essential to maximize available space. 

But how do you choose the right option? The best storage option is one that satisfies your warehouse’s needs in terms of storage density, inventory rotation, and accessibility of goods. 

Bulk storage is preferred in cases of bulk shipping, whereas rack storage is a key choice for online retailers as it ensures easy retrieval of goods. So do your research and choose one option that suits your requirements properly.

If you’re looking for a solution to your warehousing needs, get in touch with Shipyaari. We offer technology-backed logistics solutions to help you optimize your storage and streamline your operations. 

 

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