Storage Metric

Why area per location?

Area per location as a metric offers two important benefits:

  1. Estimating incremental capacity. A quick way to understand how many additional storage locations can be added to an existing facility.
  2. Understanding storage efficiency. A foundation for making business cases for storage improvement and for assigning space cost to inventory.
Measure the footprint of a storage bay. Divide the bay area by the number of storage locations in the bay. Area per location can be applied to vacant floorspace to estimate the number of new locations.

Benchmark the current facility’s storage profile to understand area per location and the cost of space per location.

Benchmark: Divide total space by the number of locations. Use the area per location to allocate space cost to each storage location.

Explore how alternative storage media changes the number of locations and the associated space cost per location.

Use the benchmark to compare what would happen to the space cost per location under different storage scenarios.

Make a business case.

Use the space cost per location to justify changes to the storage design.

Make a business case to change the storage design. Report the change to capacity and cost of space per location.

Contact us to explore how area per location can justify change.