How to utilise storage space in your warehouse

How to calculate storage capacity of a warehouse

Knowing how to calculate the storage capacity of your warehouse gives you a real baseline, and it's the first step towards identifying where you're losing space.

The basic formula goes like this:

Total Storage Capacity = Usable Floor Area × Clear Height × Space Utilisation Rate

• Usable floor area – is your total floor space minus everything that can't hold stock: aisles, fire exits, office areas, charging stations, and so on.
• Clear height – is the vertical distance between the floor and any overhead obstruction — beams, lighting rigs, sprinkler heads.
• Space utilisation rate – is the proportion of that total volume you can realistically fill (typically 22–27% for most warehouses, once you account for aisle access and pick requirements).

So for a 2,000m² warehouse with a 6m clear height and a utilisation rate of 25%, the calculation runs: 2,000 × 6 × 0.25 = 3,000m³ of effective storage. That's your working storage capacity.

But here’s the catch: if your shelves only go halfway up the wall, you’re leaving valuable space unused.
And storage efficiency? That’s where layout comes in:

• Wide aisles = easier movement, lower capacity
• Narrow aisles = higher capacity, requires planning
• Poor organisation = wasted space, regardless of size

So yes, you can calculate capacity, but improving it is where the real gains sit.

How to utilise storage space in your warehouse (without moving walls)

1. Go vertical - floor space is expensive. Vertical space, by contrast, is often completely wasted. Adding adjustable warehouse shelving or taller racking systems can dramatically increase capacity without changing your footprint. It’s one of the quickest wins.

2. Choose the right storage for your stock - for most general warehousing operations, heavy-duty shelving offers a good blend of load capacity, adjustability, and value. Different environments need different solutions. If you’re unsure what fits your setup, our guide to shelving and racking breaks down the options without overcomplicating things.

However, not everything belongs on a shelf. People often focus so heavily on the big structural decisions (racking type, aisle width, layout) that they forget about the containers holding the stock itself. It's a mistake. The right storage boxes and bins make a warehouse easier to work in, reduce handling damage, and improve counting accuracy.

Plastic storage boxes and containers allow you to store more in the same vertical height, keep loose items contained, and make visual stock checks much faster. Labelled, colour-coded bins work brilliantly for categorising stock and are particularly useful in picking operations where errors are costly.

For heavier items, consider robust Euro containers with standardised footprints that integrate neatly with conveyor systems or pallet movements. For small parts or components, a proper cabinet with shallow drawers can hold an extraordinary amount in a compact space.

A mismatch between product and storage is one of the most common causes of wasted space.

3. Create clear zones (and stick to them) - zoning sounds simple, but it’s often overlooked.

Create separate areas for:

• • Goods in
  • Bulk storage
  • Picking
  • Returns

This improves flow and reduces the “temporary pile” problem where items sit somewhere “just for now” and never move again.

Different warehouses, different storage challenges

Here’s how storage needs tend to vary across different types of warehouses: 

Retail and e-commerce warehouses: speed and flexibility come first