Intro to Warehouse Racks & Warehouse Racking Systems - ShipBob

Your garage is overflowing.

For more information, please visit our website.

Your spare rooms are packed.

Every living space is full of boxes.

If this is true for you, then you are probably already considering moving inventory to a warehouse.

But in order to transition to warehousing successfully, you will need the right equipment. While storage bins, storage cabinets, and totes suffice for home storage, warehousing requires a warehouse racking system, or special metal shelving units that hold pallets or boxes of inventory.

Warehouse racking systems directly impact the efficiency of your warehouse management, your order accuracy, speed of fulfillment, and worker safety — so before committing to a racking system, it’s important to do your research. By understanding the different types of warehouse racks and the costs associated with each type, you’ll be able to find the best model for your warehouse the first time.

In this article, we take a closer look at warehouse racking systems — what they are, why it’s important to choose the right ones, the challenges of managing and maintaining warehouse racking systems, and how ShipBob can handle all internal warehouse processes with ease.

What is a warehouse racking system?

Warehouse racking systems (also called pallet rack systems) are storage systems used in most warehouses to hold inventory.

Warehouse racking systems consist of several warehouse racks, which are industrial shelving units made of metal designed to store boxes or pallets in multiple levels of horizontal rows, stacked on top of each other.

What are racking systems used for in warehouses?

Businesses use racking systems to optimize their warehouse storage. Racking systems can double or triple your warehouse’s inventory holding capacity without increasing the square footage you pay for, making them a cost-effective solution for small businesses looking to maximize their warehousing storage space.

A rack system also helps keep inventory organized, as it provides a dedicated storage space for each SKU. For fast-growing companies transitioning away from haphazard garage storage, steel shelving racks with storage bins or pallets can improve inventory management, and make it easier to find and pick units.

How much do warehouse racks cost?

The cost of a racking system depends on the type of racking system you purchase. In general, the simpler the racking system, the less expensive it will be.

Here is a list of various racking system designs, as well as descriptions and cost estimates (including installation) for each:

* “Pallet position” refers to a single slot in a warehouse rack that can fit one 48” by 40” pallet. One warehouse rack usually has multiple pallet positions, with the precise number of positions ranging from 2 to 10.

While warehouse racks themselves are a significant investment, there are additional costs to racking that you’ll need to consider as well.

Racking systems usually require additional add-ons (such as cross bars, wire decking, and protectors for uprights & aisle ends) which can range anywhere from $12 to $125 each.

In addition, you may need to purchase additional warehousing square footage to accommodate the racks, which will vary in cost depending on location and demand for ecommerce warehousing.

You may also require material handling equipment to store and retrieve inventory held in warehouse shelving, which may include pallet jacks, forklifts, dollies, workbenches, or other pieces. Used equipment will of course cost less, while new equipment will cost more, but both will depreciate in value over time.

Taking into account all of these costs, setting up a high-quality warehousing rack system for a larger operation can easily cost around $100,000 or more. Because of the costs, smaller operations may find it more cost-effective to outsource storage and warehousing to a 3PL or logistics service provider, to avoid investing in expensive assets too early on.

“Even when evaluating other 3PLs, ShipBob was by far the easiest, most reasonably priced option with the nicest, most genuine people. Other 3PLs gave me confusing pricing with many per-item fees, which were hard to grasp and calculate ultimate costs. Thinking big picture, it was an incremental cost for me to ultimately sell a lot more. My business has tripled and I got my life back.”

Anastasia Allison, founder of Kula Cloth

How to set up a warehouse racking system

Once you decide which type of racking system is the best for your business, the next step is to carefully consider how to arrange that system to maximize efficiency, manage inventory, avoid bottlenecks, and ensure warehouse safety.

Here are some aspects of warehouse racking to plan for in your business’s warehouse.

Spacing between racks

There should be ample space between racks so that materials are accessible. While your instinct may be to place racks closely together to make the most of your floor space, you shouldn’t do so at the cost of picking efficiency.

Consider how pallets are loaded into the racking system, and make sure not to block any pallet loading or picking points (particularly if you use pushback or pallet flow racks).

Aisle width

Your aisles should be wide enough for any material handling equipment such as forklifts or pallet jacks to move around with ease to ensure safety and efficiency. With certain types of racking systems, such as double deep racking, two racks can be placed back-to-back to conserve space and allow for wider aisles.

Labeling & organization

To improve your stowing and picking efficiency, follow a consistent system to organize your warehouse and inventory.

This system does not have to be ordered alphabetically or by SKU number — in fact, it is often far more efficient to organize inventory based on picking practicality. Try storing items that are commonly purchased together near each other, grouping seasonal products, and placing best-selling items in easily accessible locations to make picking quick and intuitive.

Once you settle on a system, label each storage location prominently, and create a master list of products’ aisle numbers and placements for pickers to refer to.

Layout of the system

When first planning your warehouse layout, ignore any obstructions in your warehousing space (such as columns, mezzanines, workbenches, etc.). Once you have an initial plan, factor in and accommodate for those obstructions, changing as little as possible from your original plan.

While this approach does not guarantee an efficient warehouse, it allows you to prioritize efficiency from the beginning, without getting bogged down in details too early.

Longer rows of racks typically make the most efficient warehouse layout. Bisect these long rows periodically with cross-aisles to make moving from one aisle to the next quicker and simpler.

How is shelving load calculated?

Before you begin to load your shelves with inventory, you absolutely must calculate shelving load capacity for each rack, and display that number prominently.

Without awareness of how much weight a rack can hold, shelves can easily get overloaded. This could result in falling pallets or cause the entire rack to collapse — so to create a safer work environment for your employees, shelving loads must be respected and up-to-date at all times.

Warehouse racks are made of two main components: vertical uprights and horizontal beams. These form the framework, with other components adding support (wood or wire decking to make the “floor” of the pallet position, braces, baseplates, etc.).

To calculate your shelving load capacity, you will need to assess many different factors, including:

• Upright capacity — depends on the heights, widths, and spacing of the uprights (the farther they are spaced out, the less weight they’ll be able to hold)
• Beam capacity — depends on the rack’s depth-to-length ratio, as well as the thickness and length of each beam (the longer and thinner the beam, the less weight it will hold and the more likely it will bow over time)
• Height of each pallet position — from the top of one beam level to the top of the next
• Number of storage levels — the higher the level, the less weight it can hold
• Material — quality, thickness, strength

When making your calculations, refer to the load capacity chart provided by the manufacturer, since warehouse rack capacities can vary across make and model.

Once you have calculated how much weight each warehouse rack can hold, plan your inventory storage accordingly.

To maximize your warehouse rack’s lifespan, never fill it to its full weight capacity — instead, make sure that the total pallet weight is always lighter than that given rack’s weight capacity. In addition, make sure that pallet weight is always uniformly distributed.

If your warehouse rack is adjustable, calculate the maximum total pallet weight you will ever hold on one rack, and work with your rack installer to tweak the design so that the rack’s weight capacity is well above that total.

Warehouse racking systems and OSHA inspections

Although OSHA doesn’t lay out any specific guidelines for warehouse racking safety, employers are still obligated to ensure that their racking systems don’t pose an occupational hazard for their workers.

You should regularly inspect your warehouse racking systems for any obvious hazards (such as damaged warehouse equipment, improper installation, and missing capacity displays), as well as general cleanliness, waste disposal, loading and receiving SOP performance, and proper inventory accounting.

Warehouse inspections should be performed at least annually, though high-traffic racking areas and narrow aisles require more frequent inspections.

This will ensure that your warehouse is ready for any OSHA inspections, which are typically conducted without advance notice.

Warehousing is a pain – leave it to the experts

Purchasing, installing, and maintaining warehouse racking systems on your own is a challenge — and it’s just the start of your warehouse operations.

As your business grows, you will also need to navigate inventory management, order fulfillment, SOP development, warehouse automation, and other critical warehouse functions on a much larger scale.

If you want to learn more, please visit our website UNISTAR.

To save themselves time, money, and trouble later on, many small business owners choose to outsource their warehousing logistics to third party logistics providers (or 3PLs) early on.

Partnering with a 3PL like ShipBob is usually much easier than handling warehousing yourself, as companies like ShipBob have years of expertise and a thorough knowledge of best practices that they use to optimize operations.

It is also usually more profitable for small businesses, as ShipBob grants merchants access to infrastructure, warehouse equipment, and technology that they cannot afford to invest in themselves.

With ShipBob, you can store your inventory across multiple, strategically placed fulfillment centers so you don’t have to maintain your own warehouse space, and can cut shipping time and cost dramatically.

Moreover, ShipBob’s efficient pick and pack fulfillment ensures that orders get out the door faster without sacrificing fulfillment accuracy.

“The entire process of getting started with ShipBob was so easy. I was handing my business over to someone who was not just a vendor but a partner, one who was going to hear me and understand the complexity of what we do — and have a solution. During our initial conversations, it was never ‘We can’t do that …,’ it was always ‘We can do this and …’ and ‘It’s going to be this or that …’”

Andrea Hamilton, founder of The Finer Things

To learn more about how ShipBob can meet your warehousing and fulfillment needs, click the Request Fulfillment Pricing button below.

Pallet racks are expensive warehouse components that require great care in their selection and maintenance. Their purchase and upkeep can be seen as an expense, or it can be viewed as a long-term warehouse investment.

Following proper deliberation in the selection phase, a warehouse can be left with improved storage capacity which increases overall efficiency and workflow. It can lead to greater warehouse value and more significant revenue. Additionally, a well-protected racking setup can resist damage and retain its value for longer. 

The considerations discussed below apply to new warehouses devoid of racking and warehouse managers looking to modify, replace, or even add new racking into their warehouses. We’ll look at reasons to invest in industrial racking, considerations when investing, and how to keep that investment safe for the future.

Warehouse Storage Improvement with Industrial Racking Systems

Whether purchasing your first pallet racks or improving upon your current warehouse, the most evident return of investing in industrial racking systems is the increase in available storage.

Implementing racking systems takes advantage of the vertical space inside a warehouse. As opposed to being limited to the square footage of the warehouse floor, pallets of material can be held across multiple beam levels in a racking system.

Vertically stacking pallets directly on each other, as seen in Figure 1, poses stability risks and is advised against. On the other hand, racking systems provide a secure storage method for products and personnel safety while enabling individual access to each pallet. 

Figure 1: Unsafe pallet stacking.

IncreasING Warehouse Productivity with Industrial Pallet Racking

Another return on investment one can expect from industrial pallet racking is an increase in warehouse efficiency and productivity [2] [3] [4]. The inventory increase from the extra storage can prove to be advantageous for a company.

In a production environment, this means that more raw materials are readily available or more room to store finished products. For a distribution center, more inventory means more items to sell. In this way, the increase in storage potential can correlate somewhat with an increase in potential for sales and revenue [1].

Figure 2: Double and triple-stacked pallets with difficult accessibility.

The expected amount of pallet movement, selectivity requirements, types of products being stored, and desirable storage density can vary depending on your industry [2]. A pallet rack system can be tailored to the specific needs of a particular client in a distinct warehouse by adjusting height, depth, beam placement, and capacity [2].

Specialized systems like pallet flow, pushback, and drive-through racking can also offer other specific benefits that may be attractive. For more information on drive-in systems, please refer to our blog: “Parking Your Pallet at the Drive-in.”

This means that system placement, rack type, and configuration can be set up to optimize a warehouse flow. Easy access to pallets and a racking setup that facilitates material flow can reduce ongoing labor costs by saving time, ultimately leading to greater revenue [2]. 

Figure 3: Organized pallets with easy accessibility.

Enhancing Warehouse Property Value Through Quality Racking Investments

The fact that racking adds value to your warehouse property can be seen as a third form of return on investment [5]. Racking systems are expensive, and the funds and care put into them are reflected in the value of your warehouse. Should you ever wish to sell or lease your facility, the presence and quality of your racking would factor into the appraisal [2].

However, suppose the racking is in a poor state. In that case, a buyer or even a capital lender may be dissuaded by the risk it presents and the fact that “removing a non-viable racking system can prove cost prohibitive in time and labor” [5]. In this way, there is an incentive to buy high-quality warehouse racking and to protect/repair the racks over the long term.
 

Navigating the Maze of Industrial Racking: COST-BENEFIT Analysis

With the motivating reasons established, we can delve into the important considerations when investing in industrial racking. After all, there is a multitude of rack manufacturers, rack types, and price points.

Choosing the right racking to meet your storage, budget, and operational needs can be quite a challenge. This decision holds significant importance, particularly because selecting the wrong racking system “could have a detrimental effect, by slowing down or hampering the smooth-running of your warehouse” [4].

Used INDUSTRIAL Racking

One attractive option for individuals needing storage solutions is used racking since the upfront costs are reduced. There are several risks to consider, however, as discussed in “Your Guide to Buying Used Racks Safely: 5 Tips to Follow.”

One of the main takeaways is that pallet racks are tailored to specific clients and their environments. What was optimal under certain conditions might not be so in another warehouse, and you may miss out on certain benefits. It may be that used racking is your best solution, but these factors need to be considered for a long-term investment. 

Long-term Costs: Beyond the Initial Investment

Apart from the upfront cost, future costs are an essential factor. Certain manufacturers are better positioned to provide new parts, replacements, or additional services than others [5].

While one company may offer a better initial deal, future servicing may come at a premium with a longer lead time, ultimately making another vendor the wiser choice when considering a larger scope of time [3]. 

Quality and DurabLE INDUSTRIAL RACKING SOLUTIONS 

Some racks are built with tougher or thicker materials and additional protection features, making them more damage-resistant than others [2]. The extra toughness of high-quality warehouse racking comes at a price, but the improved safety and expected longevity can offset the cost. 

WAREHOUSE RACK Adaptability: FUTURE-PROOFING YOUR STORAGE SOLUTIONS

Yet another factor to consider when selecting the racking systems is flexibility. It doesn’t refer to a material property but rather that the racking should satisfy your immediate storage needs while also being readily adaptable to future ones.

As a warehouse space is modified or operational requirements change, so must the racking to keep up with new opportunities or demands [5]. This means that racking systems that can be easily expanded or adjusted are beneficial.

Rack-type compatibility plays into this. Certain types of racking can potentially work together, even if they are from different manufacturers. If one manufacturer’s product works solely on their own devices, you could lose out on purchasing flexibility in the future. Additionally, replacement or additional parts will become scarce if that manufacturer goes out of business.

A manufacturer should always be contacted to verify the compatibility of components before mixing. Also, remember, when adapting racking systems to meet new needs, that any modification to an existing system requires approval and certification by a racking engineer.

For more information, please refer to “Pallet Racking Weight Capacity: Why Warehouse Operators Need LARCs.” 

Figure 4: Racking systems with a combination of components from different manufacturers.

Protecting Your Racking Investment

Even the most robust racking can become damaged over time and mishandling. While there can be many sources of damage to pallet racks, impacts with forklifts are one of the most common causes [6].

Costly repairs from such damages can be avoided by adding protective features to your racking systems [2]. Various products exist on the market, such as column guards that protect from low-level impacts. Guide rails can be installed in aisles to help guide forklifts, and barriers can be installed at the ends of aisles where forklifts often impact racking as they turn in. 

Figure 5: Column guards installed onto a system.

Another way to safeguard your warehouse investment is by assigning experienced crews to install your racking systems and professional lift drivers to work around them once installed. A poorly installed pallet rack may not align with codes and standards. It may even be a safety concern that could lead to pricey adjustments and a loss of valuable time in the future.  

Lastly, regular inspections are recommended to ensure everything is in order and that damage or safety concerns are correctly identified. For more information on rack inspections, please refer to our blog “5 Tips on How to Inspect Racking Systems.”

Optimizing Efficiency, Revenue, and Safety: The Smart Choice for Quality Racking Investment

To conclude, quality racking that was tailored to the operational requirements of the company and facility will last long while improving overall workflow in the warehouse. The additional storage creates new revenue opportunities while the efficiency increase saves valuable time and money. The investment in maintaining these racking systems adds value to the warehouse property and keeps the environment safe for employees.

Choosing what type of racking to invest in can be challenging, but by balancing various considerations, an informed decision can be made that suits your current needs while accommodating the potential for future ones.

Additional safety features can help protect your racking, making your investment last even longer. If you are interested in devices to protect your valued assets or want to assess the state of your current racking, please do not hesitate to contact us.