Warehousing

Optimizing Space: Racked vs. Bulk Storage Explained

May 6, 2025

Warehouse fully of stacked goods and unorganized goods

Optimizing Space: Racked vs. Bulk Storage Explained

When it comes to warehouse design, space is money — and how you store your goods can make or break the efficiency of your operations. Two of the most common storage methods are racked storage and bulk storage. But what exactly are they, and when should you use one over the other?

At Kilo Logistics, we help businesses across Southern Africa unlock the full potential of their storage capacity by using the right mix of techniques to match their inventory flow, product type, and business needs.

What is Racked Storage?

Racked storage uses metal shelving or pallet racks to organize inventory vertically. It’s the most common method in modern warehouses and is ideal for storing palletized goods or items that require clear separation and accessibility.

Benefits of Racked Storage:

  • Maximizes vertical space (ideal for high-ceiling warehouses)

  • Easy access for picking with forklifts or hand pickers

  • Organized inventory by SKU, batch, or product type

  • Improved safety and reduced product damage

Ideal For:

  • High-turnover products

  • E-commerce operations

  • Products requiring first-in-first-out (FIFO) or lot tracking

  • Warehouses with barcode or RFID systems in place

What is Bulk Storage?

Bulk storage, also known as floor or block storage, involves stacking items directly on the warehouse floor, often without racking systems. It’s a cost-effective way to store large quantities of uniform goods.

Benefits of Bulk Storage:

  • Low infrastructure cost

  • Fast to implement

  • Flexible for large, irregular-shaped items

  • Efficient for short-term or seasonal storage

Ideal For:

  • Low-turnover goods

  • Large, heavy items like industrial equipment

  • Overstock or promotional inventory

  • Operations not requiring high selectivity

Racked vs. Bulk: Key Differences

Feature

Racked Storage

Bulk Storage

Space Utilization

Vertical & organized

Horizontal & open

Accessibility

High (individual pallets)

Low (last-in, first-out)

Setup Cost

Higher (racks, tech)

Lower

Ideal Use Case

High-frequency pick & pack

Low-frequency, bulk handling

Inventory Visibility

Excellent

Moderate to Low

How Kilo Logistics Optimizes Your Space

At Kilo Logistics, we don’t just store goods — we strategically engineer your warehousing footprint to save space and money. Our hybrid approach blends both racked and bulk storage depending on your SKUs, delivery cycles, and business model.

Whether you're moving FMCG products daily or need seasonal overflow space, our facilities in Zimbabwe and South Africa are optimized to deliver:

  • Higher throughput

  • Reduced handling times

  • Lower storage costs

  • Maximum inventory control

Final Word

Choosing between racked and bulk storage is not a one-size-fits-all decision. The most effective solution often lies in a smart combination of both — customized to your unique product mix and operational goals.

Want to optimize your warehousing footprint?
Let’s design a solution that works for you. Contact Kilo Logistics today or explore our Warehousing Services.