warehousing
Warehouse Utilization
Share of usable storage capacity currently occupied.
Definition
Share of usable storage capacity currently occupied.
Why it matters
Utilization drives productivity, safety and the ability to absorb demand peaks.
Formula
Occupied Storage Capacity / Total Usable Capacity x 100
Example
8,500 of 10,000 usable pallet positions gives 85%.
How to interpret it
Very high utilization slows travel and picking well before space physically runs out.
How to improve it
Improve slotting, remove obsolete stock and flex overflow capacity seasonally.
Common mistakes
Measuring against total building space rather than usable storage capacity.
Related KPIs
Related SupplyChain.tools
Run the numbers on SupplyChain.tools - this page covers the management decision.
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