How Does warehouse racking system Work?

Your garage is overflowing.

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Your spare rooms are packed.

Every living space is full of boxes.

If this is true for you, then you are probably already considering moving inventory to a warehouse.

But in order to transition to warehousing successfully, you will need the right equipment. While storage bins, storage cabinets, and totes suffice for home storage, warehousing requires a warehouse racking system, or special metal shelving units that hold pallets or boxes of inventory.

Warehouse racking systems directly impact the efficiency of your warehouse management, your order accuracy, speed of fulfillment, and worker safety — so before committing to a racking system, it’s important to do your research. By understanding the different types of warehouse racks and the costs associated with each type, you’ll be able to find the best model for your warehouse the first time.

In this article, we take a closer look at warehouse racking systems — what they are, why it’s important to choose the right ones, the challenges of managing and maintaining warehouse racking systems, and how ShipBob can handle all internal warehouse processes with ease.

What is a warehouse racking system?

Warehouse racking systems (also called pallet rack systems) are storage systems used in most warehouses to hold inventory.

Warehouse racking systems consist of several warehouse racks, which are industrial shelving units made of metal designed to store boxes or pallets in multiple levels of horizontal rows, stacked on top of each other.

What are racking systems used for in warehouses?

Businesses use racking systems to optimize their warehouse storage. Racking systems can double or triple your warehouse’s inventory holding capacity without increasing the square footage you pay for, making them a cost-effective solution for small businesses looking to maximize their warehousing storage space.

A rack system also helps keep inventory organized, as it provides a dedicated storage space for each SKU. For fast-growing companies transitioning away from haphazard garage storage, steel shelving racks with storage bins or pallets can improve inventory management, and make it easier to find and pick units.

How much do warehouse racks cost?

The cost of a racking system depends on the type of racking system you purchase. In general, the simpler the racking system, the less expensive it will be.

Here is a list of various racking system designs, as well as descriptions and cost estimates (including installation) for each:

* “Pallet position” refers to a single slot in a warehouse rack that can fit one 48” by 40” pallet. One warehouse rack usually has multiple pallet positions, with the precise number of positions ranging from 2 to 10.

While warehouse racks themselves are a significant investment, there are additional costs to racking that you’ll need to consider as well.

Racking systems usually require additional add-ons (such as cross bars, wire decking, and protectors for uprights & aisle ends) which can range anywhere from $12 to $125 each.

In addition, you may need to purchase additional warehousing square footage to accommodate the racks, which will vary in cost depending on location and demand for ecommerce warehousing.

You may also require material handling equipment to store and retrieve inventory held in warehouse shelving, which may include pallet jacks, forklifts, dollies, workbenches, or other pieces. Used equipment will of course cost less, while new equipment will cost more, but both will depreciate in value over time.

Taking into account all of these costs, setting up a high-quality warehousing rack system for a larger operation can easily cost around $100,000 or more. Because of the costs, smaller operations may find it more cost-effective to outsource storage and warehousing to a 3PL or logistics service provider, to avoid investing in expensive assets too early on.

“Even when evaluating other 3PLs, ShipBob was by far the easiest, most reasonably priced option with the nicest, most genuine people. Other 3PLs gave me confusing pricing with many per-item fees, which were hard to grasp and calculate ultimate costs. Thinking big picture, it was an incremental cost for me to ultimately sell a lot more. My business has tripled and I got my life back.”

Anastasia Allison, founder of Kula Cloth

How to set up a warehouse racking system

Once you decide which type of racking system is the best for your business, the next step is to carefully consider how to arrange that system to maximize efficiency, manage inventory, avoid bottlenecks, and ensure warehouse safety.

Here are some aspects of warehouse racking to plan for in your business’s warehouse.

Spacing between racks

There should be ample space between racks so that materials are accessible. While your instinct may be to place racks closely together to make the most of your floor space, you shouldn’t do so at the cost of picking efficiency.

Consider how pallets are loaded into the racking system, and make sure not to block any pallet loading or picking points (particularly if you use pushback or pallet flow racks).

Aisle width

Your aisles should be wide enough for any material handling equipment such as forklifts or pallet jacks to move around with ease to ensure safety and efficiency. With certain types of racking systems, such as double deep racking, two racks can be placed back-to-back to conserve space and allow for wider aisles.

Labeling & organization

To improve your stowing and picking efficiency, follow a consistent system to organize your warehouse and inventory.

This system does not have to be ordered alphabetically or by SKU number — in fact, it is often far more efficient to organize inventory based on picking practicality. Try storing items that are commonly purchased together near each other, grouping seasonal products, and placing best-selling items in easily accessible locations to make picking quick and intuitive.

Once you settle on a system, label each storage location prominently, and create a master list of products’ aisle numbers and placements for pickers to refer to.

Layout of the system

When first planning your warehouse layout, ignore any obstructions in your warehousing space (such as columns, mezzanines, workbenches, etc.). Once you have an initial plan, factor in and accommodate for those obstructions, changing as little as possible from your original plan.

While this approach does not guarantee an efficient warehouse, it allows you to prioritize efficiency from the beginning, without getting bogged down in details too early.

Longer rows of racks typically make the most efficient warehouse layout. Bisect these long rows periodically with cross-aisles to make moving from one aisle to the next quicker and simpler.

How is shelving load calculated?

Before you begin to load your shelves with inventory, you absolutely must calculate shelving load capacity for each rack, and display that number prominently.

Without awareness of how much weight a rack can hold, shelves can easily get overloaded. This could result in falling pallets or cause the entire rack to collapse — so to create a safer work environment for your employees, shelving loads must be respected and up-to-date at all times.

Warehouse racks are made of two main components: vertical uprights and horizontal beams. These form the framework, with other components adding support (wood or wire decking to make the “floor” of the pallet position, braces, baseplates, etc.).

To calculate your shelving load capacity, you will need to assess many different factors, including:

• Upright capacity — depends on the heights, widths, and spacing of the uprights (the farther they are spaced out, the less weight they’ll be able to hold)
• Beam capacity — depends on the rack’s depth-to-length ratio, as well as the thickness and length of each beam (the longer and thinner the beam, the less weight it will hold and the more likely it will bow over time)
• Height of each pallet position — from the top of one beam level to the top of the next
• Number of storage levels — the higher the level, the less weight it can hold
• Material — quality, thickness, strength

When making your calculations, refer to the load capacity chart provided by the manufacturer, since warehouse rack capacities can vary across make and model.

Once you have calculated how much weight each warehouse rack can hold, plan your inventory storage accordingly.

To maximize your warehouse rack’s lifespan, never fill it to its full weight capacity — instead, make sure that the total pallet weight is always lighter than that given rack’s weight capacity. In addition, make sure that pallet weight is always uniformly distributed.

If your warehouse rack is adjustable, calculate the maximum total pallet weight you will ever hold on one rack, and work with your rack installer to tweak the design so that the rack’s weight capacity is well above that total.

Warehouse racking systems and OSHA inspections

Although OSHA doesn’t lay out any specific guidelines for warehouse racking safety, employers are still obligated to ensure that their racking systems don’t pose an occupational hazard for their workers.

You should regularly inspect your warehouse racking systems for any obvious hazards (such as damaged warehouse equipment, improper installation, and missing capacity displays), as well as general cleanliness, waste disposal, loading and receiving SOP performance, and proper inventory accounting.

Warehouse inspections should be performed at least annually, though high-traffic racking areas and narrow aisles require more frequent inspections.

This will ensure that your warehouse is ready for any OSHA inspections, which are typically conducted without advance notice.

Warehousing is a pain – leave it to the experts

Purchasing, installing, and maintaining warehouse racking systems on your own is a challenge — and it’s just the start of your warehouse operations.

As your business grows, you will also need to navigate inventory management, order fulfillment, SOP development, warehouse automation, and other critical warehouse functions on a much larger scale.

To save themselves time, money, and trouble later on, many small business owners choose to outsource their warehousing logistics to third party logistics providers (or 3PLs) early on.

Partnering with a 3PL like ShipBob is usually much easier than handling warehousing yourself, as companies like ShipBob have years of expertise and a thorough knowledge of best practices that they use to optimize operations.

It is also usually more profitable for small businesses, as ShipBob grants merchants access to infrastructure, warehouse equipment, and technology that they cannot afford to invest in themselves.

With ShipBob, you can store your inventory across multiple, strategically placed fulfillment centers so you don’t have to maintain your own warehouse space, and can cut shipping time and cost dramatically.

Moreover, ShipBob’s efficient pick and pack fulfillment ensures that orders get out the door faster without sacrificing fulfillment accuracy.

“The entire process of getting started with ShipBob was so easy. I was handing my business over to someone who was not just a vendor but a partner, one who was going to hear me and understand the complexity of what we do — and have a solution. During our initial conversations, it was never ‘We can’t do that …,’ it was always ‘We can do this and …’ and ‘It’s going to be this or that …’”

Andrea Hamilton, founder of The Finer Things

To learn more about how ShipBob can meet your warehousing and fulfillment needs, click the Request Fulfillment Pricing button below.

Warehouses are designed for efficient storage, but the recent surge in eCommerce puts more pressure on warehouses to operate faster and better. Fortunately, there are ways to improve warehouse efficiency, with one of the best tools being racking systems.

Warehouse racking organizes inventory and maximizes floor space by stacking products vertically. Whether you’re expanding your warehouse, aiming to improve safety, or seeking cost-effective solutions, understanding and leveraging warehouse racking is key to operational success.

By using the right racking system, businesses can optimize space, streamline workflows, and ensure a safe, efficient working environment for employees. This guide will explore the various types of warehouse racking systems, their pros and cons, best practices for installation and optimization, and emerging trends shaping the future of racking.

What Is Warehouse Racking?

Warehouse racking is a type of warehouse storage for organizing materials. Racks are metal shelving units bolted to the wall or floor, allowing workers to stack goods vertically. Warehouses may use different types of racking systems to accommodate varying product sizes and weights.

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Warehouse racking systems are also known as materials handling systems, or pallet racks. Warehouses use pallets made of wood, metal, or plastic for shelves, and decks are installed in different widths to support goods on the racks.

In many cases, warehouse racking is several feet high and requires forklifts for loading. Warehouse layout plays a major role in warehouse racking because aisle width, docking locations, shipping areas, and other warehouse components affect which options will work in your space.

The goal is to balance efficient storage with ease of inventory accessibility. With proper warehouse racking, managers can maximize space and optimize warehouse organization for efficiency and a streamlined picking process.

The Benefits of Strategic Warehouse Racking

Well-designed racks speed up operations and reduce errors. There are so many other benefits to strategic warehouse rack design, including:

• Space optimization: Stacking inventory or goods vertically on a rack maximizes available storage capacity. There’s no need to expand the warehouse’s footprint, either.
• Speed and accessibility: Vertical stacking may sound less efficient for employees, but racking systems are designed to be fast and accessible. With the proper setup, workers can quickly access and retrieve products during picking and restocking.
• Safety: A well-planned racking system reduces clutter and the risk of accidents. Most warehouse safety rules require features like secure frames and locking mechanisms to keep racks in place.
• Inventory and equipment optimization: Configure your racking system to reduce waste by supporting inventory management methods like FIFO or LIFO. Rack organization also streamlines workflows for equipment like forklifts, helping you make the most of warehouse machinery.
• Reduced costs: Warehouse racking minimizes the need to purchase additional storage space, reducing real estate costs. It also speeds up fulfillment accuracy and speed, and improves equipment utilization.

Warehouse Racking Types

Embracing warehouse racks will maximize storage space, but not all businesses follow the same racking system or fulfillment processes. There are several warehouse racking system configurations, each with pros, cons, and unique use cases.

Selective Racks

The most commonly used pallet system, selective racks provide access from an aisle. These warehouse racking systems are ideal for narrow aisle racking, standard systems, and deep-reach systems.

However, selective racks require narrow lift trucks and only accommodate a single pallet in depth. Still, they’re ideal for warehouses with a mix of SKUs and high turnover, where employees need selective access to individual pallets.

Pros

• Highly accessible because they offer direct access to each pallet
• Versatile options for a wide range of SKUs
• Quick to install, reconfigure, or expand

Cons

• Less dense storage capacity compared to drive-in or flow racks
• Requires narrow aisle lift trucks

Drive-in and Drive-Through Racks

Drive-in racks and drive-through racks are ideal for high-density storage and often go from floor to ceiling. Constructed of durable steel, these warehouse racking systems offer enough space for a forklift to move into each bay. It’s important to note that drive-in racks have one entrance and exit, but drive-through racks allow access on both sides of the bay.

As a result, drive-in racks are suited to the last in, first out (LIFO) process commonly used for nonperishable products. On the other hand, a drive-through system requires a first in, first out (FIFO) process.

Cold storage facilities frequently use these racking systems to store perishable goods in high-density storage. However, they’re also popular in industries like manufacturing, where businesses need to store lots of raw materials.

Pros

• Maximizes space for bulk storage
• Reduces square footage for storing large quantities
• Efficient inventory rotation for perishable goods

Cons

• Less effective for warehouses with SKU variety
• Limited to LIFO and FIFO strategies

Push Back Racking Systems

Typically used for bulk storage, push back racking systems store products that span two to five pallets. When employees load a pallet onto the system, it pushes the next pallet back. When employees unload a pallet, it goes to the front of the rack.

Push-back racking systems utilize the LIFO system, often featuring inclined rails, sliding carts, and double lanes. This warehouse racking strategy is ideal for storing bulk items for retail. It’s also popular in warehouses that need rapid access to products.

Pros

• Optimizes space with high-density storage
• Efficient loading and unloading
• Ideal for bulk storage without strict rotation needs

Cons

• Limited capacity for rotating inventory
• More expensive because of its design and inclined rails

Flow Racks

Also known as gravity racks, flow racks are popular for high-density storage. Flow racks use gravity rollers that move with the rack load and feature brakes or speed controllers to regulate item movement.

With this type of warehouse racking system, employees load items at the higher end and remove them at the lower end with a FIFO system. Product rotation happens automatically, as the racks flow with each load. One advantage of flow racks is that they don’t require electricity because gravity powers them.

Flow racks are common in distribution centers, food and beverage industries, and warehouses where strict inventory rotation is critical. They’re ideal for high-volume, fast-moving warehouses with rapid stock turnover.

Pros

• Doesn’t require electricity
• Automatically rotates inventory
• Streamlines picking and replenishment

Cons

• Higher cost due to rollers and braking systems
• Works best with uniform product sizes and weights
• Complex installation

How To Choose The Best Warehouse Racks

Selecting the right warehouse racking system for your facility depends on various factors. The type of warehouse racking that best suits your warehouse varies by need, and there are a few factors to consider that help determine the best option for your company.

Cost

High-density racking systems, like flow or drive-in racks, may have a higher upfront cost, but can maximize storage space and potentially reduce costs associated with additional warehouse space. On the other hand, selective racks are less costly to install and reconfigure, but offer lower-density storage.

Available Floor Space

The amount of floor space in your warehouse plays a significant role in choosing a racking system. High-density racking systems, such as drive-in or push back racks, can store more products in a smaller footprint, making them ideal for warehouses with limited floor space.

Ceiling Height

Racking systems like selective or flow racks allow storage up to the ceiling, maximizing your available cubic space. When planning, consider your building’s ceiling height, ensuring that your chosen racking system and forklifts can accommodate high stacking.

Pallet Type and Size

Some racking systems may require consistent pallet sizes for proper operation, such as flow racks that rely on uniform dimensions to move items smoothly. Make sure your chosen racking system aligns with the type, size, and dimensions of your inventory pallets.

The Number of SKUs Stored in Each Rack

If you manage many SKUs, a selective racking system may be better because of its direct access to each pallet. High-density systems like drive-in racks are more efficient if you have fewer SKUs but higher quantities.

Frequency of Pallet Access

Warehouses with high inventory turnover and frequent pallet access benefit from selective racking, or flow racks, because they support quick retrieval. In contrast, push back and drive-in systems are better for bulk storage with lower turnover and less frequent access.

Product Shelf Life

For perishable goods, racking systems that support FIFO inventory management, such as flow or drive-through racks, are crucial. On the other hand, nonperishable goods benefit from LIFO systems and drive-in racks.

Number of Pallets To Be Stored

High-density systems such as drive-in or push-back racking are designed for large quantities of pallets with limited access points, while selective racking is better for smaller quantities with a higher focus on accessibility.

Fork Truck Type and Lift Height

Consider the types of forklifts or material handling equipment used in your warehouse and their lifting capabilities. For example, selective racking systems often require narrow-aisle lift trucks to accommodate tight spaces. Drive-in and push-back systems sometimes also require specialized forklifts.

How To Install Warehouse Racks Safely

Designing an effective warehouse rack is crucial, but installation is just as important as design. Follow these tips to minimize accidents and ensure safety during warehouse rack installation:

• Plan the layout: Measure your warehouse space, ceiling height, and floor plan. Consider traffic flow for workers and forklifts. Outline where each rack will go, considering aisle widths, emergency exits, and forklift access. Also, make sure the installation plan complies with local building codes, fire safety regulations, and industry standards.
• Check your floor: Ensure the warehouse floor is level, stable, and capable of bearing the load of racks and inventory. If the floor can’t support the weight, strengthen it with anchor points.
• Follow manufacturer instructions: Carefully follow the manufacturer’s instructions for assembly and installation. Secure all beams and crossbars using locking pins or clips to prevent dislodging during use. Ensure all beams are at the correct height and level to avoid uneven loading.
• Consider additions: They aren’t a requirement, but additions like wire mesh decking can prevent small items from falling off tall shelves. Backstops also prevent pallets from falling off the back of the racking system.
• Test rack loads: Verify that each rack section can support the intended load without bending or collapsing. Ensure your team distributes the weight by placing loads evenly across beams.
• Label clearly: Clearly label each racking system with its maximum load capacity to ensure workers don’t overload them. Display safety signage that outlines proper loading and unloading procedures and weight limits. Go with Camcode’s durable warehouse rack labels to ensure long-term legibility in even the harshest conditions.

3 Best Practices for Optimizing Warehouse Racks

Proper design and installation lay the foundation for successful warehouse racking. However, little optimizations can also go a long way. Follow these best practices to optimize your investment in warehouse racks.

1. Use Clear Labels and Tags

Proper labeling and tagging of inventory stored on warehouse racks can improve organization and inventory management. Barcode labels or RFID tags facilitate easy scanning, enabling accurate stock counts and quick item retrieval. Also, clearly labeled load limits and inventory details prevent employees from overloading the racks.

Avoid damaged or faded rack labels. Go with Camcode’s durable labels and tags, which are rated to last up to 20 years in even the most rugged environments.

2. Routinely Inspect Warehouse Racks

The best inspection routine depends on the complexity of the racking system, load weights, and frequency of use. Racks with more complex setups and components will need more regular inspections.

Conduct regular inspections to detect any signs of wear, damage, bending, or loose bolts. Ensure all anchor bolts are secure and the beams are locked in place.

Consider your environment, too. If you’re in a humid environment, for example, inspect for rust or corrosion and treat affected areas promptly to maintain the rack’s structural integrity.

Maintenance is also crucial. Create a maintenance schedule that includes periodic tightening of bolts, replacing worn-out components, and repairing damaged sections.

For racks with moving components, such as push back or flow racks, ensure that rollers, tracks, and other moving elements are regularly lubricated and free of debris.

3. Train Employees

Train employees on proper loading and unloading techniques, emphasizing safe handling practices and how to prevent overloading. For example, ensure your team evenly distributes loads across beams to avoid tipping, leaning, or collapse.

Train them to always place heavier loads on lower shelves to reduce stress on the system.

It’s also crucial to ensure specialized employees have relevant training and certifications. Forklift operators must be up-to-date with their certifications. Aside from tracking certifications, ensure forklift operators understand how to safely navigate around racks and avoid collisions.

Racking Technology Trends

Warehousing space — and, by extension, racking — is increasing in demand. With the surging demand for eCommerce, businesses need more warehousing space.

It’s therefore no surprise that the global warehouse racking industry is projected to grow tremendously, with experts predicting it will reach over $14 billion by (a CAGR of 4.12%).

However, racking won’t stay stagnant, and warehouse racking is experiencing a surge of innovation that promises to improve efficiency and safety.

Consider the following warehouse racking technology trends:

1. Automated Storage and Retrieval Systems (AS/RS)

Warehouses are already relying on automated systems and robots to make racking faster, efficient, and safer. AS/RS technology automates the storage and retrieval of goods, reducing the need for manual labor. It also speeds up picking speed and accuracy.

Warehouses are increasingly integrating autonomous mobile robots (AMRs) and automated guided vehicles (AGVs) with racking systems to retrieve items more efficiently.

These technologies will likely become more ubiquitous as demand for warehouses grows and costs for these technologies go down. Experts also predict they will have an impact on the market for pallet racking, which will grow at an impressive CAGR of 9.31% by .

2. Modular Racking Solutions

It’s easy to adjust modular racks to meet changing inventory demands. More warehouses are embracing this approach to be as flexible as possible in light of fluctuating demand, storage needs, seasonality, and space constraints. Some modular solutions are more expensive upfront, but the long-term benefits easily outweigh the initial investment.

3. Sustainability

There is a growing trend toward using recycled and eco-friendly materials in racking components to reduce environmental impact. By maximizing vertical and horizontal space, modern racking systems also lessen the need for additional real estate.

With rising real estate prices, more warehouses are opting for high-density racks out of necessity. This approach maximizes existing footprints, which cuts costs and carbon emissions, helping businesses be more sustainable and profitable in the long run.

Maximize Efficiency With Clear Warehouse Racking

Warehouse racking is a straightforward but crucial tool for ensuring efficiency and safety, and choosing the right racking system for your inventory and business supports long-term growth and success.

Follow the best practices in this guide to select the best warehouse racking system, optimize it for efficiency, and plan for the future. Investing in modern racking solutions is not just about storage — it’s about creating a smarter, safer, and more sustainable future for warehousing.

Maximize your warehouse efficiency and safety with Camcode’s durable warehouse racking labels and tags. Designed to withstand harsh conditions, our high-visibility labels make inventory tracking and management seamless. Request your free label sample kit to find the perfect labeling solution for your racking system.

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