Using Pick Modules to Maximize Vertical Space (and the Bottom Line)
The average warehouse operation generates a profit margin between 5% and 20%—but there’s a wide discrepancy. Regardless, optimal efficiency can improve your margins. Using your space more efficiently can also improve your bottom line.
Using pick modules can help.
A pick module combines various types of shelving, racking, conveyors, and other material handling equipment in an integrated system. It is compact and uses vertical space, which means it can take up less floor space and leverage space that is often underutilized.
How Pick Modules Work
Pick modules are used to organize inventory across different levels. Each level is typically dedicated to specific types of order profiles or product types. Pickers retrieve items as needed, placing them on conveyors to move to packing and shipping.
Warehouse operators can configure modules in a variety of ways, combining different types of equipment and automation. A static pick module is a fixed structure, generally made up of pallet racks, shelving, and gravity-fed conveyors. A dynamic pick module often leverages advanced automation, such as robotic picking equipment, or automated storage and retrieval systems (AS/RS).
One of the most common types of pick modules is the single-pallet system, which moves pallets on a belt through the module. However, this configuration can also be used for double-pallet pick modules, stacker-reclaimers, and bulk pick modules.
The Benefits of Pick Modules in Warehouses
Pick modules maximize the vertical space. This allows for increased storage density without having to expand the facility’s footprint. Mezzanines can create additional picking levels for even greater storage.
Efficiency and Productivity
Travel time can account for 60–70% of labor costs, the most expensive item in a warehouse operating budget. Efficient and organized inventory in a pick module can reduce travel distances and improve throughput significantly. Pickers spend less time moving between storage locations and more time picking.
You can also configure areas specifically for kitting and bundling, grouping multiple items in a picking station for common orders.
Inventory Visibility
Integrated software systems can also provide real-time inventory tracking and visibility, improving stock control and reducing errors.
Cost Reductions
Besides savings on labor costs, other financial benefits can translate right to the bottom line. Faster order processing means you can fulfill orders more quickly, reducing delivery times and increasing sales volume.
Pick modules produce an improvement in storage capacity. Using the vertical space more efficiently enables warehouse operators to store more inventory in a smaller footprint—improving your revenue per square foot.
While there is an initial investment in the engineering, configuration, and equipment, most businesses see an ROI within a short period.
Safety
Pick modules can be designed to improve safety. For example, OSHA and the National Safety Council (NSC) report forklift accidents are one of the most common causes of injuries in warehouses. You can design pick modules to form separate aisles for forklifts and pickers, reducing the potential for collisions.
Implementing Pick Modules
Integrating pick modules into your warehouse requires careful planning. You will want to work with an experienced warehouse planner who can analyze your inventory profiles, order patterns, and growth projections to help you design an efficient system. Depending on your configuration, you may need to develop engineering documents and get permit approval from local authorities.
If you are adding pick modules to your existing facility, you also have to phase implementation to minimize disruptions to your ongoing operations. Designing an optimal configuration that integrates with your existing systems and material handling equipment takes significant expertise. DIY solutions often fall short.
Boost Operations and Bottom Line
For warehouse managers and owners looking to boost their operations, implementing a pick module system can be the key to unlocking new levels of productivity and profitability. The experts at Conesco Storage Systems can help you design, engineer, and install an optimal pick module system for your facility.
As one of the nation’s largest distributors of new and used pallet racking, warehouse automation, and material handling equipment, Conesco can find the perfect fit at an affordable price. Our engineers can design a plan customized to your needs and guide you through the permitting process. We also offer project management services and labor for installation.
Call Conesco Storage Systems at (303) 690-9591 or request a free consultation to discuss how pick modules can improve your operations.
