Summary
• During the recession timber suppliers are picking more.
• Racking makes products more accessible.
• Storage solutions create and safer and more efficient work place.
• Racking can be used to help sell products.

E ffective storage solutions are essential to the efficiency of any business and this has become more apparent during the recession. Customers wary of holding large stocks have turned away from ordering full packs of materials and are buying smaller quantities of a mix of products on a daily basis, which has brought a new pressure for merchants.

“People are generally seeing the volume of orders increasing but the value of their orders decreasing so they’re having to work a lot harder for a lot less,” said Nick Betteley, technical director and owner of Stakapal.

“They’re all picking a huge amount more than previously and on top of picking more they’re also having to contend with fewer employees because of downsizing,” he said.

This is where storage systems, perhaps installed to ensure companies ran smoothly in busy times, are helping to sustain business during the recession.

“People often think racking is used for storage. It isn’t; it’s used for picking,” said Mr Betteley.

“If you’re having to do a lot of picks of smaller volumes you can no longer go to where it was once bulk stacked; you need a location where you can take the items off and pack them as part of an order.”

Racking products

Whereas in the past merchants racked around 20% of their product lines, they are now racking 70-80%, he said, so the storage they chose when they were busy, is now benefiting them during the recession.

“They bought racking so they had access to product packs,” said Mr Betteley. “The change in the recession hasn’t been driven by labour so much as the need to be able to pick small items.

“Some would tell you that if they hadn’t done it then they don’t know how they’d cope at the moment. One managing director told me he was thankful they did it [installed racking] three years ago because now they could ride out the recession with an effective and efficient operation which could absorb some loss of business and still operate efficiently.”

For Ashley Dean, of consultancy and design company CSD Associates, storage is not just somewhere to keep products, it’s about selling them as well. “A timber company’s business is not to store timber, it’s to sell timber,” he said.

This is becoming more important with the trend towards allowing customers to walk around warehouses rather than collect materials from a trade counter. And it’s one that’s become more important during the recession as the RMI and self-build markets have provided some work for smaller builders – and benefits for merchants.

“They want relatively small quantities and they’re not going to be twisting the merchant’s arm for the cheapest price so the margins are higher,” said Mr Dean. “Often the builder collects himself so there’s reduced delivery cost and if the merchant sets products out well, the calling tradesman can pick himself without as much staff involvement so the cost to sell the product is reduced. Those who are operating in that way with that customer base are riding it out better than others.”

When making a decision on the types of racking it comes down to the customer’s individual requirements. “The skill is coming up with a solution that suits the customer rather than trying to get the customer to fit your racking,” said Neil Bates, sales manager at Wickens Engineering.

Cantilever racking

The factors to consider are the effective use of space, the range of products, how they’re picked and pick rates, he said. And cantilever racking remains popular among timber customers. The advantages, said Mr Bates, are that it makes stock selection and control easier as the products are more visible, and safe storage.

Its robustness also gets the thumbs up from health and safety people, he said. “It’s substantial so it can withstand a clip by a lorry.”

Mr Dean agrees that cantilever racking makes the most efficient use of yards, and covered cantilevers are a cheaper and simpler alternative to sheds.

“We’re not only putting roofs on but standing cantilevers close together to create virtually a timber store. You don’t have to pay rates on it because it’s not a building and you don’t need planning permission,” he said.

Pallet racking

Pallet racking used in a rack-clad structure also saves the cost of a building and separate racking.

“It has its limitations – because the roof’s connected to the racks you can’t move the racks – but in these hard times it’s a very cost-effective way of creating stores,” said Mr Dean.

When it comes to machined timber and mouldings there is much debate about the merits of vertical racking versus pigeon holes.

“Vertical racks are good for visual selectivity but for long-term and even medium-term storage they do lead to products warping. Good timber merchants interested in the quality of their product rarely store vertically,” said Mr Betteley.

Also, there’s the time-consuming task of removing products for restocking, and the temptation to stack new stock on top of old, resulting in a poor through flow.

“Pigeon hole racks are the better equivalent of the A-frame for someone who wants to keep their timber in better condition. But there’s the same problem that you’re having to handle the product,” he said.

While Mr Dean agrees that vertical racking is not ideal for storing timber, he said it does help to sell the product and is ideal for products with a high turnover.

“Generally it sells better if it’s standing up than if it’s in a pigeon hole; it’s easier to see, it’s more accessible and it’s easier to select,” he said. “As long as the A-frame is constructed properly with the timber supported at three points along its height, you don’t get bowing problems.”

It provides easy access for staff or calling customers to pick orders. In response to customer demand, Wickens recently introduced a lighter weight, low cost range.

Pigeon hole vs vertical

Vertical racking also requires less space than pigeon holes. “Pigeon hole racking has to be 6m deep and then you need 6m draw-off space. You can draw off into uncovered space but then you have to stand in all weathers,” said Mr Dean.

Pallet racking can also be used to create a merchandise area for A-frame components, such as doors and fence posts, with related components can be displayed underneath in wire baskets.

“There are lots of options for timber merchants. It’s not just cantilever or pallet racking or pigeon hole, there are many variations on a theme,” said Mr Dean.

And whatever the choice of racking, it is safer and more efficient than bulk stack areas.

“In racked areas it’s easy to distinguish pedestrian access and that makes a big difference in terms of safety and operations. It’s also difficult to discipline bulk stack areas – people may offload a lorry where they see a space,” said Mr Betteley.