How an Inside-Out Approach to Industrial Storage Capacity Drives Sustainable Profitability

By: Zach Adams, Director of Business Development

The first step for an industrial new build or expansion: think from the Inside-Out

When industrial organizations are considering building a new warehouse or reimagining their current space, it is often tempting to begin by looking at the property and thinking in conventional terms. Unfortunately, beginning in this fashion yields “conventional” returns. As construction costs are rising exponentially, the time is now to rethink how to optimize a building’s potential, maximize storage capacity within a smaller footprint, and drive down cost. It begins by thinking first from the Inside - Out.

Traditionally, the storage solution in the business case and design has been approached as “the way we’ve always done it” with a variation on a static system. But when organizations understand the impact of a mobile racking system on the business case – specifically achieving density and accessibility on a smaller footprint which delivers a lower cost per pallet and higher sustainable returns – that is when thinking first from the Inside-Out starts to make sense. With the FLEXSPACE Mobile Racking System, we have been helping organizations across the country maximize their storage capacity, minimize their footprint, and ultimately become profitable sooner with higher margins.

Why think Inside-Out first

A significant profit driver is storage capacity. When the idea of an expansion or new build is first conceived, clients have engaged us to visually demonstrate how the FLEXSPACE Mobile Racking System can achieve their desired storage capacity that will meet return expectations on a smaller building footprint. By converting unused aisle space to moving access aisles, the FLEXSPACE Mobile Racking System achieves maximum density with 100% accessibility to inventory. When we compare two conventional, 50’ clear buildings with the same number of pallets, one using the FLEXSPACE Mobile Racking System over a traditional, double-deep system – the building using FLEXSPACE Mobile Racking System is smaller, more efficient, has more storage capacity and has an overall less cost per pallet.

The FLEXSPACE Mobile Racking System provides the ability to mitigate cost escalations and drive down the overall cost per pallet, all leading to increased earnings and sustainable profitability. This will provide owners and end-users with more investment capital and a stronger rate of return.

What questions should an Inside-Out approach consider?

We think about what you want to achieve with your project. We help design your storage capacity around the answers to these 5 launchpad questions.

1. What are you storing?

2. What type of storage capacity are you aiming to achieve?

3. What type of footprint do you have?

4. What is the desired throughput and typical inventory turns?

5. What are the land acquisition and ongoing real estate costs?

Click here to view the Inside-Out approach.

Inevitably, the Inside-Out approach and the visual demonstration of the Mobile Racking System generates discussion from the warehouse operations and finance teams. We are able to present the economic justification and related business value which helps feed the building design and footprint.

To learn more about the FLEXSPACE Mobile Racking System, you can reach me at zadams@flexspsace360.com. I look forward to learning more about your business, vision, and how we can maximize your building’s potential.

by Zach Adams, Director of Business Development