How to Consolidate Spare Part Warehouses
- 1). Determine how much warehouse space is actually required. If the same item is being stored in multiple locations and none of the locations are at capacity, it is often cost effective to consolidate these items into a single location. You must then determine if the combined inventory can be stored in a single existing location. Repeat this process for each item being stored in the warehouses. When the list is completed you should have a calculation of the total amount of area required to consolidate the inventory.
- 2). Determine the type of storage racking required to hold the consolidated inventory. If the warehouse most suitable for the consolidation has not been cubed out it may be necessary to purchase new racking or to transfer some racking or shelving to the new location. It is critical all space is utilized by building racking to the maximum height possible. This will allow the maximum amount of storage capacity without increasing rental costs.
- 3). Determine the time line for consolidation. If the warehouses are leased, it is important to plan the consolidation to coincide with the end of the lease periods. If racking must be moved, it must obviously be moved first. Once the racking is in place the other warehouses should be emptied and inventory transferred based on which lease ends first. It is critical to properly time the moves at a pace that will allow the warehouse to be emptied before the lease expires, but also at a rate that can be handled by the warehouse accepting the new inventory.
- 4). Consolidate equipment and other items into the new single location. The best equipment, such as forklifts, racking, scanner and other items should be transferred to the new central location. Other equipment, not needed in the new warehouse can be liquidated to help offset the cost of the move. Freight cost and the initial additional labor for the move and set-up will be the largest cost incurred during the transfer of the inventory.
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