What is Cubic Space Utilization?
This is a measurement of how effectively the 3-dimensional space of a warehouse is used.
How to calculate Cubic Space Utilization?
Cubic Space Utilization = (Total Volume of Inventory / Total Volume of Warehouse) * 100
What is the business impact of Cubic Space Utilization?
Low cubic space utilization may indicate inefficient use of warehouse space, leading to higher storage costs.
Industry benchmark for Cubic Space Utilization
It varies greatly depending on the specific business and industry, but higher percentages indicate more efficient utilization of space.
In many industries, 22-27% space utilization is considered to be the standard.
How to improve Cubic Space Utilization?
- Implement a warehouse management system for space optimization.
- Regularly review and reorganize the warehouse layout.
- Create dedicated areas for units, boxes, pallets to ensure effective space management and maximize yield per square inch.
- Use vertical carousel systems or high-density racking systems to make optimal use of vertical space.
- Implement mobile racking systems to eliminate unnecessary aisle space.
- Adopt a warehouse layout optimization software to make data-driven layout decisions.
