Just because you have limited space does not mean you have to look for a larger warehouse facility. Instead, maximizing the current space that you already have with warehouse solutions (such as high-density shelving systems and wire partition security fencing) may be all you need.
At least this was the case with OTG Management, a large company that specializes in furnishing clothing, food, and sundry items to restaurants and shops in airports and throughout the country.
Read on to learn how Specialized Storage Solutions helped OTG Management double their storage capacity, make inventory 100% accessible, and save $100,000 in pilferage costs, plus more.
The Problem: Limited Space Plus Inventory Control and Security Issues
OTG Management runs their operation in an airport; as you may suspect, space is hard to come by.
As Larry Leinwand, OTG’s Operational Controller puts it, “Running operations in an airport, by nature, storage space is limited.”
But it wasn’t just limited space OTG was faced with; the airport hospitality company also was dealing with inventory control and security issues. The question became how do we maximize OTG Management’s limited space while simultaneously making their inventory completely accessible, organized, and secure?
Solving the Problem: A Warehouse Layout Design That Utilizes High-Density Shelving Systems and Wire Partition Security Fencing
Bill Bavagnoli, Specialized Storage Solutions President, designed a warehouse layout for OTG Management that included high-density shelving systems and wire partition security fencing.
In doing this, the high-density shelving systems not only increased the number of pick faces in beverage and perishable coolers but more than doubled the storage capacity for each area. Each storage area was centralized, which allowed for 100% accessibility and easy inventory control. Problem solved.
Speaking of which…
Why High-Density Shelving Systems
High-density shelving systems are a great way to eliminate non-productive aisles and increase storage space that you already have (but probably didn’t know you could maximize).
From holding product samples and charts and records to industrial equipment, car parts and more, high-density shelving systems can hold objects of any weight or size and is mainly used for slower-moving inventory.
Specifically, this type of shelving system doubles storage capacity and decreases storage requirements by 50%, yielding a quick return on investment (ROI).
Solving OTG Management’s Security Issues
Besides utilizing high-density shelving systems, Specialized Storage Solutions also incorporated wire partition security fencing into OTG Management’s warehouse design.
Why Wire Partition Security Fencing
Wire partition security fencing is a common method for securing everything from data centers and quarantine areas to manufacturing and pharmaceutical facilities.
With this type of fencing, high-value merchandise is protected from all sides and, depending on your security preference, can be accessed via padlock lugs, magnetic locks, key lock, keypad, or card. This controls who has access and who doesn’t to the inventory.
How Security Fencing Wards Off Opportunists
Crimes of opportunity occur when someone has an opportunity to commit a crime. Take, for instance, a person who walks by a car that has its window rolled down; the individual would then break into the car and steal whatever valuables are inside.
The same could be said for opportunistic employees and consumers who see high-value merchandise left unattended. With little to no security measures in place, the individual could easily get away with theft.
This is where security fencing comes into play. By having a physical barrier as a first line of defense, it deters opportunists from trying to steal.
As a result, businesses save more money, not having to pay out of pocket for property damage and stolen inventory.
Having said that…
Specialized Storage Solutions customized security fencing for OTG Management to secure inventory and ward off opportunists. Because of this, the inventory was more secure, saving the airport hospitality company $100,000 in pilferage costs.
Warehouse Solutions Provided OTG Management a Successful and Informative Experience
All in all, helping OTG was a success. We are proud to say OTG Management had a great experience; Larry Leinwand says it like this,
“It was a very good and informative experience, I was very open to allowing Bill to recommend and design the storage system that he thought would work best for our situation, and Bill delivered in every way I had hoped.”
Because of the good experience, Specialized Storage will continue working with OTG Management, providing warehouse solutions to OTG locations throughout the US.
However, the Success Doesn’t Stop There…
Not only did OTG Management enjoy the experience but their staff felt happy and appreciative of the warehouse solutions. As OTG states about the boost in employee morale,
“The staff is very happy and appreciative of the solution to the point where they recognize that OTG cared enough about the storage situation and was willing to make the investment in making all our work lives better.”
What This Shows
A customized warehouse layout improves your operations in a number of ways. For one, warehouse solutions (like high-density shelving and security fencing) allow slower- and faster-moving inventory to be organized in a way where employees can easily (and safely) pick product.
This, in itself, speeds up loading and shipping times. Combine this with employee morale. Because of a safer and more efficient workspace, it is easier for employees to do their jobs—and do them well.
It would make sense then why employees would feel better about their employment—which is crucial for companies if they want to cultivate a positive workforce, reduce turnover, and increase profits.
As Forbes indicates, a majority of employers would agree that making sure employees are happy and healthy is crucial to a company’s success.
Not surprisingly, the median cost of employee turnover is roughly 21% of employee salaries (excluding physicians and executives).
What this shows is that companies would save more money if they focus on improving employee moral versus ignoring it and, consequently, suffering from high retention rates. Overall, it’s a win-win situation for employers and employees.
Final Thoughts: What You Can Expect When Changing Your Warehouse Layout Design with a Few Warehouse Solutions
As the process with OTG Management shows, changing your warehouse design does not have to be a huge undertaking. Simply, adding one or two warehouse solutions—like we did with OTG in incorporating high-density shelving and security fencing—can be all that it takes.
What it comes down to is assessing the current space that you have as well as its benefits and limitations, in combination with your values and goals as a business. And then, from there, deciding on the most cost-effective layout that will allow you to factor in (and accomplish) business growth on an intrinsic and extrinsic level.
Does your current layout increase profitability and efficiency? How could your warehouse operations improve? Leave a comment in the comments section below.
- OTG Management is a company that specializes in furnishing food, clothing, and sundry items to shops and airports
- OTG Management was dealing with limited space and inventory control and security issues
- Specialized Storage Solutions helped by creating a warehouse design layout that best accommodated OTG’s needs
- This included incorporating high-density shelving systems and wire partition security fencing
- High-density shelving systems eliminates non-productive aisles
- It also cuts down on wasted space by 50% and doubles storage capacity
- Overall, it is best for storing slower-moving items
- Securing fencing, as its name suggests, secure high-value merchandise
- Like high-density shelving, it is customizable
- It can be accessed by padlock lugs, keypad, card, key lock, and magnetic locks
- Because of this, employers can control who has or doesn’t have access to the inventory
- Security fencing is crucial since a physical barrier helps deter opportunistic employees and consumers from theft, which saves companies from paying out of pocket for property damage and stolen inventory
- Specialized Storage Solutions was able to more than double OTG’s capacity for each storage area
- And make inventory 100% accessible
- Plus, increase the number of pick faces of perishable and beverage coolers
- Not to mention, OTG Management saved $100,000 in pilferage costs
- But the success didn’t stop there; OTG employees reported greater appreciation for the change—employee morale was boosted
- Employee morale is important intrinsically to a company’s success
- Higher employee morale often times leads to a lower turnover, which saves companies more money in the long run since they don’t have to focus their time training new staff members
- OTG Management and Specialized Storage Solutions are continuing to work together, as Specialized Storage helps OTG maximize their other locations across the US
- What this shows is that you don’t have to make huge changes to reap the benefits; it comes down to assessing your current facility and space along with your business’ goals and values
Specialized Storage Solutions prides ourselves on providing space-efficient warehouse solutions that produce a quick return on investment. We do this with honesty, integrity, and service.
To learn more about how your business can thrive with a customized, cost-effective, and efficient warehouse space, feel free to contact Specialized Storage Solutions.
 Forbes: How Positive Employee Morale Benefits Your Business