Choose inventory deliberately
Slow-moving reserve, seasonal stock or full-pallet inventory may be easier to place off-site than items requiring frequent picks. Every transfer between facilities adds handling and coordination.
Account for total landed handling cost
Storage fees are only one component. Include inbound and outbound handling, transportation between sites, accessorial charges, systems work, inventory counts and management time.
Protect inventory visibility
Location and quantity accuracy become more important when stock is split across facilities. Define ownership of receipts, adjustments, damages and cycle counts before the peak begins.
Set an exit criterion
External overflow is easier to manage when there is a specific trigger for bringing inventory back or ending the arrangement. Otherwise temporary storage can become an unplanned permanent network node.
Practical questions
Should I use one utilization percentage for every warehouse?
No. Inventory profile, storage system, seasonality, staging demand, handling equipment and workflow can make the same percentage perform very differently in two facilities.
Can this guide be used to approve a rack or building change?
No. It is a planning resource. Structural, fire, building, accessibility and workplace-safety requirements must be established for the actual facility by the appropriate qualified parties and authorities.