Victoria Kickham started her career as a newspaper reporter in the Boston area before moving into B2B journalism. She has covered manufacturing, distribution and supply chain issues for a variety of publications in the industrial and electronics sectors, and now writes about everything from forklift batteries to omnichannel business trends for DC Velocity.
Looking to add storage racking or replace aging, outdated racks in your warehouse? Or maybe your company is building a warehouse and you need to install an entirely new system for the pallets, cases, and individual items you keep in stock. Before you dive in and purchase what you think you’ll need, storage rack experts say it’s best to press pause, take stock of your space and product mix, and consider your company’s growth plans in order to create a system that both maximizes your space and makes the best use of the racking.
“In general, there are many options available for companies to consider,” says Diane Domingues, vice president of marketing and customer service for pallet rack manufacturer Frazier Industrial Co. Options include everything from conventional pallet racking to rack-supported structures for automated storage and retrieval systems (AS/RS). “The key thing is partnering with companies that are able to work with you on what your goals are—for today and tomorrow.”
Here are three things to keep in mind on your journey to finding the best storage system for your needs.
1. CONSIDER YOUR SPACE
One of the first things to think about is the space you’re working with—particularly, whether you’re outfitting an existing space or creating a storage system for a brand-new building. Existing structures limit you to a set footprint and design, and you’ll have to consider factors such as ceiling height and column spacing throughout the building. Lower ceilings will limit your ability to maximize vertical storage, for instance, and those columns—which support the building—will determine how you can lay out your warehouse aisles.
“In an existing [warehouse] or in a building that’s sitting there empty, you’re dealing with existing column bays,” explains Norm Saenz, partner and managing director at supply chain consulting firm St. Onge Co., which designs, sources, and manages the installation of warehousing and material handling solutions.
Bay areas in a building are the spaces between the columns; designers have to work within that framework to develop a system of racks and aisles—and it’s rarely a perfect fit.
“You may have to bury a column in a bay, or you may have some odd aisles” or inconsistent sizing throughout the building, he says. “And you have to work around existing clear height.”
New construction is a different story.
“If you have a new building, what’s nice is you can dictate the column spacing, which gives you more flexibility to accommodate the rack types you’re going to use,” Saenz says. “And you can also determine how tall you can go.”
Domingues agrees.
“The nice thing about greenfield buildings is that it gives that person or that account or that customer a lot more flexibility and options in terms of design,” she says. “It allows them to think not only [about the best solution] for what footprint they have today, but also [what they may need] in the future.”
Whether new or existing, most warehouses have more than one type of racking—sometimes as many as three or four. A typical mix could include any of the following:
Selective racking,whichis used to store pallets in either single- or double-deep modes.
Case- or carton-flow racking,which consists of shelves equipped with rollers or wheels that allow cases or cartons of product to flow forward as the ones in front are picked.
Pallet-flow racking,which allows for higher-density storage and works much like case-flow racking does.
Drive-in racks, whichare free-standing, self-supporting racks that allow drive-in access for forklifts.
Push-back racking, whichis a high-density storage option similar to drive-in racking; it allows customers to store pallets up to five deep.
Cantilever rack, which is used to store long products, such as pipes or lumber.
And then there’s automation. Automated storage solutions can include traditional AS/RS or pallet shuttle systems—which move product in and out of a rack-supported or standalone structure. AS/RS and pallet shuttle systems can help maximize storage density, allowing companies to get more out of a smaller building. A typical, crane-based AS/RS can reach more than 100 feet, while pallet shuttle systems are generally installed in facilities with lower ceilings—say, 32 to 50 feet, according to Saenz.
2. KNOW YOUR PRODUCT MIX
You also need detailed information on the type and variety of products you are storing.
“When customers start to evaluate [their needs], they should really consider these criteria: What are they storing? How much are they storing? What does it weigh? And what’s the movement of it?” Domingues says, adding that seasonality also plays a role. “If you’re storing turkeys, for example, you’re going store them differently in the months and weeks before Thanksgiving than you do in the spring.”
Companies should also consider the type of equipment they’re using to move the product as well as the labor component. Saenz offers an example to illustrate the point.
“Labor efficiency is a common factor in making [warehouse] storage-area design decisions. The time it takes to navigate the travel aisles and put away or retrieve inventory is different when interacting with the various types of storage equipment and related layout configurations. For example, reaching the back pallet in a double-deep rack setup takes longer than grabbing a pallet from a single-deep pallet rack system,” he explains. “And aligning and moving into drive-in rack takes longer than interacting with single- or double-deep rack. The trade-offs between [capacity], labor efficiency, and capital costs are intermingled in these tough decisions, and it sometimes comes down to what issue is the most important to solve.”
Considered alongside your space constraints, these criteria help form a “unit, method, area” approach to evaluating your storage needs, Domingues says. Unit refers to the product load or loads being stored; method is the type of equipment being used to handle the products; and area refers to the space available in your warehouse for storage racking.
3. PLAN FOR GROWTH
A final rule of thumb is to consider your company’s growth trajectory and how it may affect your storage needs.
“It can be difficult to know how your business is going to change 10 [or more] years into the future, but with the right team members included, good decisions can be made,” Saenz says. “This team may include business leaders [as well as] marketing and merchandising people who can offer insight into growth projections, product changes, and future potential acquisitions.”
Companies also have to consider the unknown—which is why it’s important to factor in flexibility when designing a storage system. For that reason, many facilities rely heavily on single-deep pallet racking, which Saenz says is the most flexible and affordable storage medium available. Customers can add decking to single-deep rack to allow for case storage, for example. They can also add or remove beams to create smaller or larger storage positions.
“When we do projects, we look at inventory-level history and growth projections—for example, what is your SKU [stock-keeping unit] count going to be in the next seven years?” he says. “We look at that to determine the rack mix. We’ll determine what’s ideal, and then we might back off and be more flexible.”
The need for planning makes what many may consider a simple product not so simple.
“It’s rack, but there are nuances to all of this,” Saenz adds. “It’s the cost, the density, the utilization factor, the equipment being used … it all comes into play.”
Worldwide air cargo rates rose to a 2024 high in November of $2.76 per kilo, despite a slight (-2%) drop in flown tonnages compared with October, according to analysis by WorldACD Market data.
The healthy rate comes as demand and pricing both remain significantly above their already elevated levels last November, the Dutch firm said.
The new figures reflect worldwide air cargo markets that remain relatively strong, including shipments originating in the Asia Pacific, but where good advance planning by air cargo stakeholders looks set to avert a major peak season capacity crunch and very steep rate rises in the final weeks of the year, WorldACD said.
Despite that effective planning, average worldwide rates in November rose by 6% month on month (MoM), based on a full-market average of spot rates and contract rates, taking them to their highest level since January 2023 and 11% higher, year on year (YoY). The biggest MoM increases came from Europe (+10%) and Central & South America (+9%) origins, based on the more than 450,000 weekly transactions covered by WorldACD’s data.
But overall global tonnages in November were down -2%, MoM, with the biggest percentage decline coming from Middle East & South Asia (-11%) origins, which have been highly elevated for most of this year. But the -4%, MoM, decrease from Europe origins was responsible for a similar drop in tonnage terms – reflecting reduced passenger belly capacity since the start of aviation’s winter season from 27 October, including cuts in passenger services by European carriers to and from China.
Each of those points could have a stark impact on business operations, the firm said. First, supply chain restrictions will continue to drive up costs, following examples like European tariffs on Chinese autos and the U.S. plan to prevent Chinese software and hardware from entering cars in America.
Second, reputational risk will peak due to increased corporate transparency and due diligence laws, such as Germany’s Supply Chain Due Diligence Act that addresses hotpoint issues like modern slavery, forced labor, human trafficking, and environmental damage. In an age when polarized public opinion is combined with ever-present social media, doing business with a supplier whom a lot of your customers view negatively will be hard to navigate.
And third, advances in data, technology, and supplier risk assessments will enable executives to measure the impact of disruptions more effectively. Those calculations can help organizations determine whether their risk mitigation strategies represent value for money when compared to the potential revenues losses in the event of a supply chain disruption.
“Looking past the holidays, retailers will need to prepare for the typical challenges posed by seasonal slowdown in consumer demand. This year, however, there will be much less of a lull, as U.S. companies are accelerating some purchases that could potentially be impacted by a new wave of tariffs on U.S. imports,” Andrei Quinn-Barabanov, Senior Director – Supplier Risk Management Solutions at Moody’s, said in a release. “Tariffs, sanctions and other supply chain restrictions will likely be top of the 2025 agenda for procurement executives.”
As holiday shoppers blitz through the final weeks of the winter peak shopping season, a survey from the postal and shipping solutions provider Stamps.com shows that 40% of U.S. consumers are unaware of holiday shipping deadlines, leaving them at risk of running into last-minute scrambles, higher shipping costs, and packages arriving late.
The survey also found a generational difference in holiday shipping deadline awareness, with 53% of Baby Boomers unaware of these cut-off dates, compared to just 32% of Millennials. Millennials are also more likely to prioritize guaranteed delivery, with 68% citing it as a key factor when choosing a shipping option this holiday season.
Of those surveyed, 66% have experienced holiday shipping delays, with Gen Z reporting the highest rate of delays at 73%, compared to 49% of Baby Boomers. That statistical spread highlights a conclusion that younger generations are less tolerant of delays and prioritize fast and efficient shipping, researchers said. The data came from a study of 1,000 U.S. consumers conducted in October 2024 to understand their shopping habits and preferences.
As they cope with that tight shipping window, a huge 83% of surveyed consumers are willing to pay extra for faster shipping to avoid the prospect of a late-arriving gift. This trend is especially strong among Gen Z, with 56% willing to pay up, compared to just 27% of Baby Boomers.
“As the holiday season approaches, it’s crucial for consumers to be prepared and aware of shipping deadlines to ensure their gifts arrive on time,” Nick Spitzman, General Manager of Stamps.com, said in a release. ”Our survey highlights the significant portion of consumers who are unaware of these deadlines, particularly older generations. It’s essential for retailers and shipping carriers to provide clear and timely information about shipping deadlines to help consumers avoid last-minute stress and disappointment.”
For best results, Stamps.com advises consumers to begin holiday shopping early and familiarize themselves with shipping deadlines across carriers. That is especially true with Thanksgiving falling later this year, meaning the holiday season is shorter and planning ahead is even more essential.
According to Stamps.com, key shipping deadlines include:
December 13, 2024: Last day for FedEx Ground Economy
December 18, 2024: Last day for USPS Ground Advantage and First-Class Mail
December 19, 2024: Last day for UPS 3 Day Select and USPS Priority Mail
December 20, 2024: Last day for UPS 2nd Day Air
December 21, 2024: Last day for USPS Priority Mail Express
Measured over the entire year of 2024, retailers estimate that 16.9% of their annual sales will be returned. But that total figure includes a spike of returns during the holidays; a separate NRF study found that for the 2024 winter holidays, retailers expect their return rate to be 17% higher, on average, than their annual return rate.
Despite the cost of handling that massive reverse logistics task, retailers grin and bear it because product returns are so tightly integrated with brand loyalty, offering companies an additional touchpoint to provide a positive interaction with their customers, NRF Vice President of Industry and Consumer Insights Katherine Cullen said in a release. According to NRF’s research, 76% of consumers consider free returns a key factor in deciding where to shop, and 67% say a negative return experience would discourage them from shopping with a retailer again. And 84% of consumers report being more likely to shop with a retailer that offers no box/no label returns and immediate refunds.
So in response to consumer demand, retailers continue to enhance the return experience for customers. More than two-thirds of retailers surveyed (68%) say they are prioritizing upgrading their returns capabilities within the next six months. In addition, improving the returns experience and reducing the return rate are viewed as two of the most important elements for businesses in achieving their 2025 goals.
However, retailers also must balance meeting consumer demand for seamless returns against rising costs. Fraudulent and abusive returns practices create both logistical and financial challenges for retailers. A majority (93%) of retailers said retail fraud and other exploitive behavior is a significant issue for their business. In terms of abuse, bracketing – purchasing multiple items with the intent to return some – has seen growth among younger consumers, with 51% of Gen Z consumers indicating they engage in this practice.
“Return policies are no longer just a post-purchase consideration – they’re shaping how younger generations shop from the start,” David Sobie, co-founder and CEO of Happy Returns, said in a release. “With behaviors like bracketing and rising return rates putting strain on traditional systems, retailers need to rethink reverse logistics. Solutions like no box/no label returns with item verification enable immediate refunds, meeting customer expectations for convenience while increasing accuracy, reducing fraud and helping to protect profitability in a competitive market.”
The research came from two complementary surveys conducted this fall, allowing NRF and Happy Returns to compare perspectives from both sides. They included one that gathered responses from 2,007 consumers who had returned at least one online purchase within the past year, and another from 249 e-commerce and finance professionals from large U.S. retailers.
The “series A” round was led by Andreessen Horowitz (a16z), with participation from Y Combinator and strategic industry investors, including RyderVentures. It follows an earlier, previously undisclosed, pre-seed round raised 1.5 years ago, that was backed by Array Ventures and other angel investors.
“Our mission is to redefine the economics of the freight industry by harnessing the power of agentic AI,ˮ Pablo Palafox, HappyRobotʼs co-founder and CEO, said in a release. “This funding will enable us to accelerate product development, expand and support our customer base, and ultimately transform how logistics businesses operate.ˮ
According to the firm, its conversational AI platform uses agentic AI—a term for systems that can autonomously make decisions and take actions to achieve specific goals—to simplify logistics operations. HappyRobot says its tech can automate tasks like inbound and outbound calls, carrier negotiations, and data capture, thus enabling brokers to enhance efficiency and capacity, improve margins, and free up human agents to focus on higher-value activities.
“Today, the logistics industry underpinning our global economy is stretched,” Anish Acharya, general partner at a16z, said. “As a key part of the ecosystem, even small to midsize freight brokers can make and receive hundreds, if not thousands, of calls per day – and hiring for this job is increasingly difficult. By providing customers with autonomous decision making, HappyRobotʼs agentic AI platform helps these brokers operate more reliably and efficiently.ˮ