High Density Rack Systems and Real Estate Decisions

High-density pallet rack systems have proven to increase storage capacity from 10% to up to 60% over conventional selective pallet rack. So one would assume huge potential savings in how much warehouse space you need, right? But, there are a number of considerations before jumping into any of these types of high-density rack systems. Each type has its pros and cons.

First, let’s review the terminology used in evaluating high-density pallet rack systems.

• Selectivity – The ability to access any given pallet in a system. In other words, if you have to move another pallet to reach the one you want, you do not have 100% selectivity. Single Deep Selective rack has 100% selectivity.
• Utilization – This is the ratio of actual pallets stored by the total number of spaces allowed to store the product.
• Floor Density – calculating storage percentage based on square footage alone
• Cubic Density – calculating storage percentage in cubic feet
• LIFO – Last in, First Out
• FIFO – First in, First Out
• Average Lot Size – The average number of pallets per SKU

Next, let’s list the types of high-density pallet rack systems (non-automated) and the ranges of the number of pallets deep that they can store

• Double Deep Selective (2 deep)
• VNA Selective Pallet Rack (single deep)
• Pushback Pallet Rack (2 deep to 6 deep)
• Pallet Flow Rack (2 deep to 20+)
• Drive-in Rack (2 deep to 12+ deep)

So the elephant in the room is the question “Which one if any is right for me?” The answer lies in a number of factors: budget, square footage savings, real estate costs, moving costs, operations costs for each type, forklift decisions, forklift compatibility, throughput, lot sizes, and FIFO requirements. Putting too much emphasis on storage density can be a crippling mistake if the product mix does not fit the rack system. Together, a user and an experienced rack professional can narrow down the choices to make an operation as efficient as possible and possibly reduce warehouse space needs. If you are interested in a high-density rack system and would like to speak with a racking specialists call us at 800-722-5908 or fill out a Contact Us Form.