Inventory Overflow Storage

The peak commerce season is approaching and warehouses are being stocked with extra products. This surge in inventory can lead to warehouse overflow, or when the warehouse reaches its capacity to store merchandise efficiently. Learn to manage overflow storage and be prepared for the holiday season.

What is inventory overflow?

Excess inventory commonly occurs during the peak holiday season, when the demand for products runs high. It can also result when unexpected bulk orders are made or companies make inaccurate forecasts. The warehouse runs out of space to store the goods.

Why does inventory overflow occur?

The holiday season is also one of the busiest of the year for retailers. In order to meet the surge in consumer demands, retailers increase their inventory 3 to 4 times beyond what is typical. The extra inventory makes additional warehouse space necessary.

Why is warehouse space critical?

Warehouse space is essential, especially in the days leading up to and during the holiday season. Sufficient space is necessary to hold and move goods. Consider that for a large warehouse, an additional 800 million square feet of warehouse space is needed to handle the excess inventory.

Why is short-term storage beneficial?

Overflow warehousing is a temporary solution for companies during the holiday season. Companies typically elect not to waste resources on permanent warehousing storage, since it’s nearly impossible to predict demands with any level of accuracy, even one week in advance.
When seasonal demands run high, transfer slow-moving goods to an overflow warehouse. Then dedicate the existing storage space to top-selling merchandise. This solution gives companies greater control, which is invaluable amid the unpredictability of increased product demand during the holiday season.

What are issues with inventory overflow?

Warehouses overflowing with extraneous holiday goods are problematic. Clutter, disorganization, and inefficiency are outcomes of this undesirable situation. Keeping track of inventory also becomes an issue. Goods becomes lost or misplaced and tracking them is challenging—impacting the retailer’s profitability.
Misplaced warehouse goods are more difficult for workers to locate, which subsequently leads to delays in order fulfillment. Safety hazards arise when warehouses are jam-packed. Accidents and injuries are likely amid cluttered aisles, stray pallets obstructing lanes, and overloaded racking systems.

How do companies best manage inventory overflow?

The challenges associated with inventory overflow require that retailers take a strategic approach, one that balances well-organized use of the warehouse space, inventory control, and fluidity of operations. Allocate warehouse space flexibly and base it on the demands of the holiday season.

1. Maximize Space
The warehouse layout can be redesigned to maximize how well space is utilized. Reconfigure shelves, optimize aisle width, and install vertical shelving units. By making use of vertical space, for example, the warehouse’s storage capacity increases exponentially—a practical solution for the holiday season.
2. Designate Overflow Sections
Overflow products are efficiently tracked when they are stored in designated locations and apart from the rest of the inventory. Failing to designate an area makes products difficult to track. Consequently, overflow items become mixed up with other inventory and get in the way.
3. Use an Inventory Management System
Retailers gain real-time data on current stock levels with the help of an advanced inventory management system. Automated inventory updates are crucial to facilitate accurate forecasting, avoid overstocking, and make decisions on purchases and reorders. Inventory visibility is key to maintaining control.
4. Review Inventory Regularly
Irregular reviews of overflow inventory can lead to significant issues emerging in the future. This is because overflow inventory is often overlooked. While tracking methods streamline organization, regular review processes must be in place to prevent problems from popping up without warning.
5. Use a Warehouse Management System
A warehouse management system (WMS) effectively streamlines operations, automates routine tasks, and manages seasonal inventory efficiently. Less clutter and disorganization and correct picking and placement of holiday merchandise are clear advantages when retailers opt for a robust warehouse management system.

OLIMP Warehousing Solutions for the Retail Holiday Season

Effectively manage excess goods during the holiday season by outsourcing warehouse operations to third-party logistics providers. A third party’s extra warehousing capacity is a practical and readily accessible solution to overflow problems that are unlikely to clear up in the short-term.

Opting for a third-party logistics solution during the holiday season saves retailers money and resources. Retailers are advised to look for warehousing overflow storage facilities near their main warehouse, if possible. Pick a warehouse well in advance of when it will be needed, i.e., before the holiday season.

Look for a warehousing solution that offers scalability. Ideally, new resources should reach more markets with ease. The right third-party logistics solution is capable of scaling up or down easily. As demands fluctuate, labor, space, and transportation are adjusted accordingly.

Retailers considering a warehouse storage option to provide extra space during the holiday season find a trustworthy partner in OLIMP Warehousing Solutions. We offer a vast network of several thousand warehouses across North America, making it certain you’ll find one close to your main warehouse.

Warehouses can be booked through our online platform well in advance or on short notice. We accommodate the seasonal needs of retailers, whether they anticipate a surplus of products before the holidays or simply need a quick solution for additional warehousing at any other time of year.

OLIMP is available to support your project, no matter if it is large or small. We take pride in our stellar track record of meeting the warehousing needs of retailers across the country, housing their excess inventory, and providing extra storage capacity to prepare them for success.

Retailers prepping for the surge of the holiday season may only need short-term storage, which is why OLIMP does not require long-term contracts. Storage terms and pricing are negotiable too. We strive to give our customers the best possible experience during the holidays.

When inventory exceeds your capacity, OLMP is the solution. We specialize in on-demand warehousing so that you keep your products moving. Request an online quote and we’ll connect you with any of our