November 27, 2021

How The Cubic Storage Model Is Changing Warehousing Forever

Warehousing is an integral part of today’s retail business spaces. For eCommerce websites and large-scale retail businesses, warehouses store products that help stock up on products for sale. Maintaining and pricing a warehouse for third-party sellers is a headache if not done correctly. With the introduction of technology and advances in retail management, warehousing is also moving into new leadership models. A new model of warehouse space and planning is the cubic model of storage. The cubic model of warehouse management helps in maximum use of space and finances to maintain the warehouse.

What Is The Cubic Model Of Warehouse Storage?

The cubic model of warehouse storage takes account of cubic feet of space that the warehouse has. It takes the total cubic feet of storage the warehouse has. The model also takes into account the space each product takes in terms of cubic feet. This gives an exact calculation to retail stores about how much space a product stock takes and how much it costs to keep it there.

The cubic model is a straightforward model that helps in precise calculations of space allocation and prices. The cubic model is popular because of its simplified structure. The cubic model has been adopted by large-scale retail giants like Amazon, Flipkart, and Deliverr. This is also the model used at Simpl Fulfillment. The cubic model of storage is the industry standard of warehouse storage and charges. The entire model improves overall order fulfillment services and the organization of the whole space.

What Does A Cubic Foot Model Look Like?

Third-party warehouses use the cubic foot model to plan out and allocate spaces. So, what does a cubic foot look like? The cubic foot model counts the space taken by each product in stock to calculate the total area. The total cubic feet taken up by the client products is calculated daily. The number of cubic feet occupied by products changes because of the movement of products in and out of the warehouse.

An active business uses the warehouse for only storing the products for the short term. The products ideally do not occupy the same space over one day. This is why the total cubic feet are calculated every day. Every day’s entire occupation and related charges add up by the end of the month, and the total charges come up after taking an average at the end.

So, how does one calculate the total cubic feet occupied by-products over a month?

The calculations include a simple set of multiplications and additions to figure out the end number. Since the products in stock are dynamic in number and fluctuate over the month, the end number emerges in cubic feet dimensions for the products multiplied by the days for which they stay that way.

For example, if a  brand has 50 effects of 12” x 12” x 12” box for the first fortnight of the month, then 50 cubic feet multiply by the number of days of occupation.

If the product stock goes to 25 in number for the next 15 days, you calculate the total cubic feet dimensions by multiplying 25 cubic feet with the number of days the products stayed in occupation. In this way, the total cubic feet over days is calculated and added to find the total number of cubic feet occupied by the client. Charges are put on accordingly, too. If you ever feel confused about finding cubic feet for the product, you can refer to this section. The measurements can be converted to cubic feet even if the dimensions are not exact or higher than one cubic foot.

Technology For Cubic Feet Model

The ease of the cubic feet model for warehouse management improves with advanced systems to keep the cubic feet in occupation. For example, data management systems the process of how to find cubic feet.  Managers note down the total cubic feet in dimensions for a product. The measurements are then fed into the computer for storage and calculations. The use of an advanced warehouse management system helps in achieving multiple goals. The WMS can also help in estimating the shipping charges linked with the products according to weight. The WMS helps in tallying the occupation charges related to all products. The WMS also tracks the movement of products in and out of the warehouse to make the month-end tally easy for the warehouse manager.

With the help of the entire WMS features, the accuracy of warehousing and management improves by manifold.

Pallet Vs. Cubic Feet

Earlier, total warehousing costs estimates happened by warehousing cost per pallet. However, calculating the cost per pallet is inaccurate and inefficient in estimating warehousing costs. Storing by pallet decreases the uniformity of the storage space because pallets fluctuate in size. There are half pallets, double pallets, and double half pallets. The size of a pallet fluctuates over time. Thus, the warehousing cost per pallet is challenging to master and understand. The cubic feet model lends simplicity and ease to warehouse cost estimations because it is a unit that does not vary. This way, not only the manager but the client can also estimate costs of storage.

When you pay by the space taken by the pallet, the pallet remains constant even though the number of products in store fluctuates. Thus, in an ideal situation, even though the number of products decreases with time, you are still paying for the entire pallet. The cubic feet model is more feasible and economical. The client does not feel like he is paying anything extra. By the end of the month, you are not paying for empty airspace but only the products that are left and were stored in the past.

Conclusion

The cubic foot model is an important step forward in warehousing efficiency. With this new system, products are never crushed or damaged by stacking them on top of one another- they're just stacked up against each other which makes the use of space more efficient and saves storage costs. If you want to get started with a warehouse solution that will improve your business's handling and storage capacity for goods, contact us today at Simpl Fulfillment. We offer all types of solutions from traditional palletized warehouses to state-of-the art automated facilities so we can find something that works best for you!