warehouse space optimisation: how a wms helps you use the capacity you already have

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Willem ten Asbroek · Published · 10:00

Most warehouses do not really run out of space; they run out of structure. Pallets go into the nearest free slot, fast-moving items end up on the top level, and slow movers occupy the best pick locations simply because they landed there months ago. The familiar complaint "we have no room" usually comes not from too few square metres but from too little control. A warehouse management system shows where everything is, where it moves and what each location can take, and that is where space optimisation starts.

Make space measurable

Optimisation begins with a complete map of the warehouse in the system. Every aisle, bay, level and location gets its properties: dimensions, weight limit, handling rules, temperature class, rules for hazardous goods that you set yourself. Locations are grouped into zones with a purpose, such as inbound, outbound, quality or bonded. Once occupancy and reservations are visible in the system, every putaway, replenishment and pick can follow data instead of guesswork.

In BizBloqs, locations sit in a tree with no fixed depth (warehouse, zones, aisles, locations), each location can carry as many properties as you need, and there is no fixed naming scheme as long as each name is unique. You fill in a location sheet and BizBloqs loads it.

Start with the measurement itself: the warehouse space calculator gives you the square metres your stock and aisles actually require.

Get the unit sizes right

A lot of capacity hides in poor packaging data. When the system knows the real size of each unit, how high it can be stacked and how many units go in a carton or on a pallet, it can send each putaway to a location that fits. Half-empty pallets in full-size bays, and one item spread over three pick faces, are signs that this data is missing. Fixing it costs no racking at all.

Slot by pick frequency, not by convenience

Which item goes in which location should depend on how often it is picked. Fast movers belong close to packing, at a height where nobody has to bend or reach; that area is called the golden zone. Rank items by how many order lines they appear on, not by how much you buy. Adjust for seasonal shifts, and keep items that are picked together, such as the parts of a kit, near each other. Deciding where each item belongs is called slotting.

A small group of fast movers usually causes most of the walking and the congestion. Put those in the right place first and the effect is felt straight away. BizBloqs offers a slotting analysis that shows which items belong where, and automatic slotting rules to keep it that way. For the thinking behind a warehouse layout, start before the racking.

Let rules, not habits, decide putaway and replenishment

When every operator chooses a location, the result is a different warehouse per shift. With directed putaway, the system tells the operator where each item goes, based on size, compatibility and distance to the pick face.

Splitting the warehouse into a forward pick zone and a reserve zone balances speed with storage. The pick location holds a small quantity; the reserve holds the rest. A replenishment trigger, based on a minimum and maximum quantity, refills the pick location before it runs empty. Pick faces can then stay small without ever being empty, which frees space where it is most valuable. Clean locations also help accuracy; see error-proof picking.

Use the full height and depth

A warehouse is not a floor; it is a volume. Store slow movers higher, use deep lanes for true bulk items with many pallets of the same product, and mark separate bays for oversized or irregular products. When the system knows the height, depth and access of each location, it can balance volume against picking effort. In BizBloqs, the picking order of locations can follow item properties such as weight, fragility and whether an item can be stacked; you could, for example, put heavy items first in the round and fragile ones last.

Reduce the space your processes take

Space is used by processes, not only by storage. Goods that leave again straight away do not need to be put away first. Releasing work in smaller portions keeps temporary staging from building up. Fixed time windows and shared lanes keep the dispatch area compact.

Returns are a common space thief. When returns wait in a corner to be sorted, that corner becomes permanent. In BizBloqs, a return is booked against the original order, or as a returns order created on the spot, for example for a parcel that could not be delivered, and it is graded at the returns bench. The quarantine area stays a quarantine area.

Keep safety stock where it belongs

High safety stock is often a sign of poor visibility. Accurate stock figures, regular cycle counts and reliable demand signals let you hold less buffer without running short. Set safety stock per item based on how variable its demand is, rather than one blanket factor for everything.

If you run more than one warehouse, stock in a nearby site can act as capacity too. From SME+, BizBloqs gives stock visibility and replenishment between your own warehouses.

Measure what matters

A few figures should guide daily decisions: how full each zone and each height band is, the share of items in the right slotting class, metres walked per order line, how long goods wait in staging, and the number of emergency replenishments. Review them weekly, hand out small re-slotting tasks, and make the improvements visible.

People make the difference

Technology only works when people use it. The system has to be easier than the old habit: clear instructions on the handheld, simple handling of exceptions, and short training on one rule at a time. Recognise the team for space they free up.

What the software cannot change

Some of it is not software. Clear height, the column grid and how much floor is left for receiving and staging decide what any system can do with a building, and a building racked from wall to wall has optimised the one thing that is not the point. You cannot raise a roof sets out which of those limits are genuinely fixed, which are expensive but possible, and which you have been treating as fixed when they are not.

How BizBloqs helps

BizBloqs warehouse management software comes in three tiers. Location setup with unlimited properties, directed putaway and replenishment triggers are part of the standard WMS.

  • SME: the standard WMS with directed work, to bring structure to one warehouse. No modules at this tier.
  • SME+: adds flows and rules customised to your operation, and stock visibility and replenishment between your own warehouses. Modules can be added at a charge, with configuration.
  • Enterprise: all modules included; the configuration work is charged.

Want to know how much room is hiding in your own building? Talk to an expert. Work out how much space you actually need with the warehouse calculators before you price a move, and see what a WMS costs if better layout alone will not close the gap.

Frequently asked questions

How can a WMS free up warehouse space?

By putting structure where there were habits. The system knows every location and its properties, directs each putaway to a location that fits, keeps fast movers close to packing and slow movers higher up or further away, and refills pick locations on time so they can stay small.

What is slotting?

Deciding which item goes in which location. Good slotting puts the items picked most often close to packing at a comfortable height, and slow movers higher or further away. BizBloqs offers a slotting analysis and automatic slotting rules.

Can I set my own location rules in BizBloqs?

Yes. Locations sit in a tree with no fixed depth (warehouse, zones, aisles, locations), with zone types such as inbound, outbound, quality and bonded, and unlimited properties per location. You fill in a location sheet and BizBloqs loads it.

Can stock in another of our warehouses count as capacity?

From SME+, BizBloqs gives stock visibility and replenishment between your own warehouses, so you can see what is available elsewhere before you add storage.

How do I know how much space I actually need?

Measure it before you decide. The free warehouse space calculator on the BizBloqs site works out the square metres your stock and aisles require.

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