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The Benefits of Pallet Racking: Why Your Warehouse Needs a Racking System

The rise in e-commerce and home delivery services has led to unprecedented growth in the warehouse industry. A study from 2021 highlighted a 22% year-over-year increase in demand for warehouse space, significantly surpassing the needs of 2019 and 2020. To keep up with the demand for quick delivery, companies are optimizing warehouse operations, with pallet racking being a key strategy. Effective warehouse optimization involves maximizing space usage in storage facilities and fulfillment centers, creating an efficient and safe workflow. This need for expanded capacity has driven the warehouse racking market, projected to grow from $8.52 billion in 2019 to $11.02 billion by 2027. Optimizing warehouse space management helps businesses reduce their total cost of ownership (TCO) and total cost of business (TCOB) across the supply chain.

Why Your Warehouse Needs a Pallet Racking System

Pallets are essential in the supply chain, significantly influencing shipment outcomes. Efficient packing and storage of pallets can dramatically enhance operational cost efficiency. Before selecting a pallet racking system, businesses should evaluate their available space and how it relates to their inventory.

Maximizing Warehouse Space

Pallet racking systems enable businesses to utilize vertical space, saving valuable warehouse area and streamlining inventory and workflow management. Systems like push-back racking increase storage capacity for high-density product stock-keeping units (SKUs). Drive-in or drive-through pallet racks save space by reducing the number of aisles needed, facilitating easier workflow management.

Enhancing Warehouse Safety

The increased demand for rapid fulfillment has correlated with higher injury rates among warehouse workers. According to a 2020 U.S. Bureau of Labor Statistics study, there were 4.8 recordable injuries per 100 full-time employees in warehousing and storage. A well-designed pallet racking strategy can streamline workflow, reduce clutter, and eliminate hazards, significantly lowering the risk of workplace injuries.

Boosting Bulk Storage Capacity

For warehouses with substantial inventory needs, a pallet racking system can greatly increase bulk storage capacity. Push-back pallet racking systems, which feature a static rack structure with carts moving along rails, boost storage for high-density SKUs. Drive-in or drive-through pallet racks reduce the number of aisles needed, enhancing bulk storage efficiency.

Implementing Diverse Inventory Control Methods

Different products require specific inventory management methods, such as first-in, first-out (FIFO) or first-expired, first-out (FEFO). Developing an efficient and supportive warehouse infrastructure is crucial. With pallet racks in high-density automated storage systems, digital tracking and automation become more manageable and should be integral to the system design.

Customizing Warehouse Solutions

Pallet racks provide quick, easy access to inventory. When organized efficiently, they reduce warehouse clutter, making navigation and task completion simpler. Depending on inventory type, warehouse shape, and operational timelines, pallet racking systems can be customized to integrate seamlessly with existing infrastructure.

Advantages of Pallet Racking with Durable, Rackable, and Sustainable Plastic Pallets

Using plastic pallets in Indonesia offers a range of benefits that elevate pallet racking systems with their high-quality, lightweight, and smart design. Opting for recycled plastic pallets instead of traditional wooden pallets provides numerous advantages:

  • Unibody Construction: Plastic pallets reduce the risk of failure under heavy loads, lowering the chance of goods being damaged by splinters or loose nails. This also enhances employee safety during pallet movement.
  • Nonporous Surface: Plastic pallets do not absorb moisture, eliminating contaminants and potential bacteria growth, maintaining a cleaner warehouse environment.
  • Automation: With embedded RFID systems, plastic pallets allow for digital tracking and tracing of products in high-density storage, facilitating easier movement and optimal organization.

Proper management of empty pallets is just as important. Empty pallets must be stacked safely to prevent damage and avoid safety hazards. Rather than purchasing pallets, companies can pool them, reducing the need for additional warehouse space and eliminating the maintenance of an extra pallet fleet. Outsourcing pallet supply and retrieval to third parties can increase overall cost efficiency.

The durability of plastic pallets ensures they withstand the rigors of the supply chain without significant damage, making them ideal for pooling. Renting pallets from a common pool allows managers to store only essential pallets, optimizing warehouse floor space further.

Businesses focused on optimizing their inventory management turn to PT Mandiri Sinergi, a leading plastic pallet manufacturer in Indonesia. We provide high-quality plastic pallets in Karawang and across Indonesia. Our lightweight, recyclable plastic pallets streamline supply chains and enhance warehouse efficiency. For more information, contact us at 1-866-557-0047, email switch@mandirisinergi.net, or visit our contact page. Follow us on LinkedIn for updates.