7 Key Things To Consider For Saving Money on Racking Systems

racking systems

Maximizing profits is vital for any business. In this competitive world, when the operational cost of a warehouse decreases, the productivity benefits increase automatically. So, you need a carefully planned strategy and make sure that your team is following the right practices for managing the racking system, which helps to streamline processing. The warehouse management also assists in decreasing the cost of the racking systems.

In this article, we will share five essential tips to spend less and make more from your warehouse racking system. Read on!

Tips to manage cost of racking system

1. Optimize storage

The optimization of your storage seems easy, but it’s complex as well as an overlooked area. No storage optimization is considered a disruption in global supply chains. You must know where to pose major challenges to affordability, access, and flexibility.

It is important for saving resources, time, and space whilst simultaneously improving management, flexibility, and communication and management as well as reducing errors. A successfully optimized warehouse is very important to stand in front of competitors and an agile supply chain of racking systems.

The storage optimization of warehouse considerations consists:

  • retrieval methods
  • warehouse flow
  • physical structure
  • storage
  • product placement

It ensures an affordable storage optimization plan that streamlines your warehouse inventory management. Also, it helps to achieve enhanced efficiencies that, in turn, result in lower costs.

The highest efficiency is needed for a successful storage optimization of your warehouse. It’s important to partner with skilled professionals having world-class design and layout principles.

If you optimize your warehouse, then it will reduce the loss of goods, increase productivity, and improve traffic flow. It will result in overall efficiency improvement.

2. Inventory Visibility

Inventory visibility is best known for offering essential benefits to increase productivity and have the greatest benefits. It helps in welcoming different retail trends, global shifts in spending, and a new wave of online shoppers. Never overlook the inventory management of your racking systems.

If a business can’t meet customers’ requirements, then they lose out on the competition. So as the demand of customers is increasing rapidly, you need to manage it with stability and flexibility. That is why meeting consumers’ requirements needs your ability to have inventory visibility and devote resources to this.

If a warehouse owner doesn’t know inventory management, then it will become too hard for them to stock goods. It may lead to fulfillment problems and revenue loss because of product expiration in the racks.

3. Theft prevention

In the warehouse industry, theft is one of the widespread problems.It is a challenge that needs prevention from theft of goods. It is not easy to verify whether a missing stock is because of theft or misplaced inventory.

How can you identify theft?

  • Check if there are any rumors about theft among your staff.
  • Looking at unusual or missing invoices.
  • Stock levels that don’t match your sales records.
  • Stock that is regularly discovered in inappropriate places.
  • Sales dip if a particular staff member is on duty.

The causes for theft differ significantly, from workers battling with their economic situations, frustration in the workplace, and a sense of entitlement, to pristine chance. In a financial situation like Coronavirus, well-provided employees find themselves under stress to create ends meet for their large families or just accounting for the boosts in living expenses.

4. Consider location

When you are buying or building a warehouse, make sure to consider location according to your business. For example, if you have a brick business, then don’t choose a warehouse in a hilly area. It is because transporting bricks to the hilly area may damage them which will lead to your loss.

Also, make sure to check whether the location you are considering is prone to natural calamities like earthquakes or floods.

5. Choose the right type of racking

You might be aware that it is the most important thing to consider. Make sure you select the right type of racking system for your warehouse.

Whether it’s heavy duty racking, pallet racking, structural racks, etc., be specific while selecting.

Check out the products you are going to keep in the racks, and then decide on a suitable racking system. If you invest in the wrong one, then this may cost you more. So, install the right one in the warehouse.

6. Effective slotting

Slotting optimization is the most important feature for managing your racking system. It’s a step-by-step process to analyze inventory data to organize and categorize inventory in a distribution center or warehouse. It is well known for boosting up profitability and productivity of a warehouse and helping to maximize the entire efficiency of warehouse operations.

Slotting optimization is very useful to assist in determining the appropriate place for inventory by grouping goods strategically. It is based on MHE constraints, warehouse layout, and picking trends. In the end, it helps in providing more safety to workers, order accuracy, and improving productivity.

7. Cross docking

It is one of the best ways to decrease warehouse costs and increase productivity. Employing cross-docking helps to transfer goods from the supplier to the customer directly. It means removing the middleman, which leads to decreasing costs from various angles.

It saves the time needed for storage, product management, delivery of items, and labor cost. There are various types of cross-docking that totally depends on the shipment of a product:

  • ship to mark for
  • merge in transit
  • pure cross-dock
  • flow-through

Cross-docking can offer the best solutions and advantages to make sure a successfully optimized supply chain. But the main work of cross-docking is to ship out the inventory.


Now you have overviewed the major factors that contributed to saving money and managing the cost of your racking systems. We would suggest you choose the right type of rack for your warehouse. And don’t forget to compare quality, durability, and prices.

We hope you have liked this write-up. If you have any questions or suggestions, feel free to write to us. We would be happy to solve your problems.

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