It’s no surprise that the total global e-commerce market continues to increase. As we come closer to the end of the year, it’s expected to rise to $500 billion. Research expects that by 2027, it’s estimated to exceed $8 trillion. The entire supply chain has surely been impacted by this expansion, but maybe nowhere more so than in fulfilment and warehousing facilities. Different kinds of fulfilment centres and technology are popping up to meet this development and the expectations of e-commerce for 3 reasons—speed, flexibility, and simple returns.
Omnichannel warehousing is one such development able to turn fresh business strategy into reality. It allows retailers to offer a seamless shopping experience across all channels, including in store, mobile, and online. You need to select a warehouse racking and shelving system which can integrate seamlessly with advanced systems like Warehouse Management Systems (WMS), Order Management Systems (OMS), cartonization configurators, and shipping rate shopping tools. Two standout storage solutions, selective storage racking and pallet shuttle racking, are already utilised widely by distribution and fulfilment centres globally. But which one is right for you? Start reading our selective storage racking vs. pallet shuttle racking comparison now to break into the omnichannel sphere now!
What’s The Best Fit For Your Warehouse: Selective Storage Racking vs. Pallet Shuttle Racking
Selective Storage Racking (Non-Palletised)
- Definition: A racking system designed for storing non-palletised items like boxes, cartons, or irregularly shaped goods. It provides direct access to every item stored, making it ideal for operations requiring frequent picking or small-item inventory management.
- Best For: High SKU variety and manual picking tasks.
- Key Feature: Direct access to individual items without moving others.
Pallet Shuttle Racking
- Definition: A semi-automated racking system where a motorised shuttle moves pallets within deep storage lanes. It is designed for palletised inventory and supports high-density storage with FIFO or LIFO inventory management.
- Best For: High-volume, low-SKU operations needing efficient pallet movement.
- Key Feature: Automated pallet retrieval and storage within deep racking lanes.
Pros & Cons of Selective Storage Racking
Let’s start with the advantages of selective storage racking:
- High Selectivity: Selective storage racking allows direct access to each item without needing to move other items, facilitating quick retrieval and efficient operations, particularly for warehouses with a high variety of SKUs and frequent picking tasks.
- Cost-Effectiveness: Generally, it has a lower initial investment compared to more complex systems, making it a budget-friendly option for many businesses. It also allows for using standard forklifts, reducing handling costs.
- Adaptability: This system can accommodate various item sizes and types, making it versatile for diverse inventories. It is particularly effective for managing items with different shelf lives due to its efficient stock rotation capabilities.
- Ease of Installation and Maintenance: Selective racking systems are relatively simple to install and maintain, which minimizes downtime during setup and reduces ongoing operational costs.
Next, let’s look at some of the disadvantages of this type of warehouse storage solution:
- Lower Space Utilization: While offering high selectivity, selective racking requires aisles for access, which can lead to lower overall storage density compared to high-density systems like pallet shuttles or drive-in racks.
- Higher Cost per Pallet Position: The need for more aisles increases the cost per pallet position, making it less efficient for businesses with extensive storage needs.
- Limited Capacity for High Volume: This system is better suited for low to medium volumes of goods. In high-volume environments, the space and efficiency limitations may lead to increased storage costs.
Pros & Cons of Pallet Shuttle Racking
There are several perks to going with this popular product:
- High-Density Storage: Pallet shuttle racking maximizes space utilization by allowing multiple pallets to be stored in deep lanes without requiring aisles for access. This is ideal for warehouses with high-volume, low-SKU operations.
- Automated Retrieval: The motorized shuttle automates the process of moving pallets, significantly speeding up retrieval times and reducing labor costs associated with manual handling.
- FIFO or LIFO Management: This system supports both First In-First Out (FIFO) and Last In-First Out (LIFO) inventory management methods, providing flexibility based on inventory turnover needs.
For a balanced comparison, we must also factor in the potential negatives:
- Higher Initial Investment: Implementing a pallet shuttle system often involves significant upfront costs due to the automation technology required. Businesses must evaluate these costs against potential long-term savings.
- Complexity in Design and Planning: Effective implementation requires careful planning and design considerations to ensure optimal flow dynamics. Poorly designed systems can lead to inefficiencies and operational challenges.
- Less Suitable for Irregular Items: This system is primarily designed for palletized goods; therefore, it may not be ideal for warehouses that handle a wide variety of non-palletized or irregularly shaped items.
Summary of Selective Storage Racking vs Pallet Shuttle Racking
| Feature | Selective Storage Racking | Pallet Shuttle Racking |
| Access | Direct access to each item | Automated access via motorized shuttle |
| Space Utilization | Lower density due to required aisles | High density with deep storage lanes |
| Initial Investment | Lower initial cost | Higher initial investment |
| Ideal For | High SKU variety, manual picking | High-volume, low-SKU operations |
| Inventory Management | FIFO primarily | FIFO or LIFO flexibility |
| Complexity | Simple installation and maintenance | Requires careful planning and design |
Conclusion
Both selective storage racking and pallet shuttle racking have distinct advantages and disadvantages that cater to different operational needs in warehousing environments. As warehousing evolves to meet the demands of omnichannel fulfillment, the choice between these systems should depend on specific requirements such as inventory type, volume, space availability, and budget constraints.