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Supply Chain 3 min read

Can vertical location technology improve warehouse management?

Milan wharehouse

As warehouses struggle with limited storage space, the solution might be heading in a direction you wouldn't expect.

One of the biggest challenges in supply chains is storage capacity, as most warehouses have a limited amount of floor space. And with many businesses growing and inventory increasing, warehouses are facing capacity challenges. This is where vertical technology can help. 

By leveraging the height of storage facilities to stock goods upwards, vertical warehouse management enables businesses to maximize their existing storage space without compromising on efficiency.


How does vertical location technology work?

Vertical warehouse management makes the most of available room for storage by incorporating multi-level shelving units and automated retrieval systems instead of relying on a traditional flat floor space to store its inventory. 

The ability to use the entire height of warehouse units allows businesses to significantly minimize the costs associated with excess inventory or lost sales due to stock shortages, while robots can automate repetitive tasks by efficiently navigating warehouse shelves, retrieving items and delivering them to the desired locations. 

This results in faster order fulfillment and increased productivity and efficiency, freeing up human workers from mundane and time-consuming activities. And thanks to their ability to perform jobs that may pose a threat to human workers, robots can also increase workers' safety.

The integration of vertical location technology also enhances coordination across different segments of the supply chain. Accurate real-time data empowers supply chain managers to optimize inventory levels and stock replenishment, thanks to valuable insights into the location and movement of goods within a warehouse. 

This also benefits logistics companies as they can use this information to optimize routes and delivery schedules, reducing transportation expenses and improving delivery times.


A container ship travels through the Panama Canal.

What are the main benefits of vertical location technology?

Vertical technology is becoming increasingly popular in warehouse management as an answer to the challenges of limited storage space. 

By using vertical technology, warehouses can increase their capacity and improve overall operations and productivity. Deploying sophisticated machinery and software systems also enables business owners to optimize the use of warehouse units and increase capacity rates, all while reducing labor costs.

Thanks to its new approach to space management, vertical technology has revolutionized warehouse optimization across industries by providing solutions to one of the most complicated elements of the supply chain.

The system's ability to house and deliver goods all in one location also improves the workflow and allows for better inventory organization, ultimately resulting in reduced costs and increased profits.

Maja Stefanovic

Maja Stefanovic

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