When warehouse space runs tight, managers are faced with a critical decision: invest in higher-density racking systems or outsource overflow pallets to a third-party facility. Each option carries different costs, risks, and long-term implications.

This article was developed to help operations teams, warehouse managers, and supply chain leaders make sense of those trade-offs. By looking at a real-world case study comparing five-deep pushback racking against selective rack with overflow storage, we can see how the numbers stack up — and, more importantly, what questions you should be asking when evaluating your own facility.

The goal isn’t to prescribe one solution for every operation, but to highlight the factors that drive ROI, efficiency, and control. Below, we’ve outlined the common questions that arise in these scenarios, paired with data-driven answers to help guide informed decision-making.

The CAD drawings illustrate two different approaches within the same warehouse footprint. In the first image, in the first building bay, the existing selective racking layout provides 1,860 pallet positions. In the second image, a retrofit to five-deep pushback racking transforms that same area into 3,120 pallet positions — a 68% increase in storage density without expanding the building envelope.

The retrofit entailed:

• Installing 498 pushback lanes, each five pallets deep.
• Converting the structure to support 3,120 pallet positions at an estimated $100 per pallet position, plus installation and freight.
• A total investment of $860,250 covering racking, lanes, installation, and shipping.

By comparison, if the facility had left its selective rack in place and sent the 1,260 overflow pallets to a third-party warehouse, it would have incurred $468,720 per year in storage, in-fees, and out-fees — not including extra freight or control costs.

This side-by-side scenario highlights the core question: is it better to spend upfront capital on higher-density racking, or accept recurring costs from outsourcing?

Common Questions When Comparing Pushback and Selective Rack

Q: How many more pallets can pushback rack hold compared to selective?

A: In the retrofit example, switching from selective to five-deep pushback increased capacity from 1,860 pallet positions to 3,120 pallet positions — a 68% increase in the same footprint.

Q: What does pushback racking cost compared to outsourcing?

A: The total retrofit cost, including racking, pushback lanes, installation, and freight, was $860,250. By contrast, outsourcing the additional 1,260 pallets to a 3rd-party facility would cost about $468,720 per year (or $39,060/month) in storage and handling fees.

Q: How long is the payback period for pushback?

A: Less than two years. The payback period works out to about 22 months, after which the system delivers ongoing savings while eliminating the need for external warehousing.

Q: Is pushback only worth it for high-volume SKUs?

A: Yes, SKU profile matters. Pushback is most effective when you carry five or more pallets per SKU. The deeper the lanes, the more cost-effective it becomes for medium- to high-volume items. For low-volume SKUs (1–5 pallets), selective rack still makes sense.

Q: What are the operational trade-offs between pushback and selective?

A: Selective rack: Maximum SKU selectivity, but low density. Best for broad SKU ranges with few pallets each.

Pushback rack: Higher density, reduced travel time, and improved cube utilization. Ideal for medium- to high-turnover SKUs where LIFO is acceptable.

Thanks to 3D’s cart design and rail slope, pallets return smoothly to the aisle, minimizing hang-ups and operator delays.

Q: Are there risks with continuing to rely on third-party storage?

A: Outsourcing creates ongoing exposure to:

Q: How does this investment future-proof the facility?

A: By increasing capacity by 68% in the same building, the operation avoids expensive expansion or land acquisition. Over the long term, pushback ensures that growth can be absorbed within the existing facility footprint.

Bottom Line

For facilities struggling with space constraints, pushback racking delivers a strong business case: higher density, faster payback, and greater control. In this case, the investment paid for itself in under two years while creating the capacity to meet demand without outsourcing.

Selective rack remains a valuable option for SKU-heavy, low-volume inventories. But when pallet counts rise, pushback is the clear winner in both cost and efficiency.

Every warehouse has unique SKU profiles, space pressures, and operational demands. The right choice between selective and pushback racking depends on aligning storage strategy with those realities.

If you’d like to explore how pushback or selective racking could impact your operation, the 3D Storage Systems team can provide a detailed layout review and ROI analysis tailored to your facility. We’re just a contact form or a phone call away!

The Core Issue

GMA pallets are designed with fork entry on the 40-inch side. When you rotate them to load on the 48-inch face, the fork cut-outs offer minimal clearance. Standard lift truck forks are about the same height as the cut-outs and operators will struggle to align forks correctly, increasing the chance of errors.

What Happens When Pallets Are Turned Sideways

Fork tip protrusion – Because most standard forks are 42” long, the forks extend past the pallet being loaded, damaging product or the pallet behind.

Placement difficulties – fork tips catch on the load or pallet behind, making it hard to set pallets down properly.

Accidental double-picking – operators may lift the first pallet plus part of the second, pulling two pallets out of the lane unintentionally.

System damage – misaligned forks can strike cart cross-ties, bending or damaging the pushback structure.

Why Clients Ask for 48” Orientation

Even with the risks, some clients request sideways orientation. Here are some reasons why:

• Aisle space optimization: turning pallets can shorten lane depth, allowing tighter aisles or more rows.
• Building layout constraints: columns, doors, or conveyor equipment may force sideways alignment.
• Uniformity: clients may want consistent pallet orientation across all storage types.
• Load profile: rotating a pallet may keep an overhanging load within rack dimensions, or improve clearance for tall or fragile loads.
• Operator preference: some operators think sideways storage is easier, especially if they’ve used it in selective or bulk racking.

Real-World Lessons

Some operations require pallet orientation on the 48-inch face due to building layout or process flow. While this configuration introduces challenges, 3D has worked with clients to engineer effective solutions.

At Interamerican Foods, for example, a special design was developed to accommodate sideways orientation. By creating engineered fork pockets and addressing fork length considerations, the system was tailored to the client’s needs. Careful design and operator training ensured performance without compromising safety or efficiency.

The Engineering Fix

For some applications, 3D can create carts with dropped front ties that creates more clearance for the forks when picking up the pallet. This solution requires:

• Engineering adjustments to the rack design
• Lift trucks equipped with shorter forks (40”)
• Operator training to avoid damage during loading and unloading
• These fixes are viable but add cost and complexity.

To make sideways orientation possible, we sometimes recommend different pallets be used. The diagram below highlights the difference: standard GMA pallets have shallow cut-outs, while block-style pallets like those supplied by CHEP allow for proper fork clearance and eliminates most of the issues discussed above.

Takeaway for Dealers and End Users

• Don’t assume pallets can be rotated in pushback lanes without consequences.
• Involve engineering early to assess pallet type, orientation, and truck compatibility.
• Protect your investment by ensuring the system is designed for the pallets you actually use.

If you’re evaluating pushback systems and want to ensure correct pallet orientation, talk to 3D Storage Systems. We’ll help you design it right the first time.

Why Replace the Washer Section?

Every year, our powder coat line processes over 10 million pounds of steel, coating the storage systems that are deployed across some of North America’s most demanding environments, from temperature-controlled freezers to high-turnover distribution centres.

The washer section is a critical component of this line. It ensures the steel is thoroughly cleaned and prepped before powder coating, which directly impacts:

• Adhesion quality
• Corrosion resistance
• Finish durability
• Overall product lifespan

The previous washer had served us well, but in line with our ongoing commitment to quality and sustainability, it was time for a higher-efficiency solution that reflects the standards our dealer partners expect.

The Installation Process

The installation of the new washer system was a multi-stage effort that required meticulous planning and coordination. Here’s what went into it:

• Decommissioning and removal of the legacy washer section
• Thorough cleaning of the site to ensure a contaminant-free environment
• Delivery and offloading of the new washer unit (completed with care and precision)
• Rigging and alignment of the new system into the existing powder coat line
• Final calibration and testing to ensure performance standards were met

This wasn’t a minor swap, it was a foundational infrastructure upgrade. And we’re already seeing the benefits in finish consistency and throughput performance.

Why This Matters for Dealers

For dealers who represent 3D products in the market, quality assurance is a differentiator.

The new washer system reinforces three critical value points:

• Consistency in finish
• Better preparation = better powder adhesion. That translates to a more uniform, professional finish across every beam and frame.
• Enhanced corrosion resistance

These enhancements are especially relevant for clients in harsh or high-humidity environments, like cold storage or food distribution.

Sustainability gains

The new system is designed for reduced water usage and more environmentally friendly chemistry compatibility—an increasingly important consideration for sustainability-conscious clients. We’re projecting 80% increased energy efficiency over the prior unit as a result of the installation. 

What’s Next

The upgrade is a visible signal of 3D’s continuous investment in its dealer network. When customers ask, “Why 3D?”, this is part of the answer: attention to detail, operational excellence, and a focus on long-term performance.

In manufacturing, it’s easy to overlook the infrastructure behind the scenes. But for 3D Storage Systems, every weld, coating, and component matters. With this latest upgrade to our powder coat line, we’re doubling down on our promise: systems built to perform, even in the toughest environments.

Whether you’re a dealer helping clients optimize their layout or an end user looking to scale efficiently, the principles in this post will help you take control of your space constraints. We’ll explore how to maximize warehouse space using design-first strategies that reduce costs and unlock capacity, all without expanding your building.

The Hidden Cost of Square Footage

Every square foot in a warehouse comes with both a capital and operating cost; land, construction, taxes, forklifts, labour, and product damage all factor into the true price of storing a pallet.

Did You Know?

• Ambient warehouse space averages $75-$100 USD/sq. ft.
• Freezer space costs up to $150-$200 USD/sq. ft.

That means every square foot saved is money reinvested into operational efficiency, not just real estate.

“The long-term cost implications of inefficient racking layouts are significant and exceed the cost of a high density storage system by a factor of 10,” explains Kevin Minkhorst, CEO of 3D Storage Systems. “3D’s design-first model addresses this often-overlooked metric, for both end users and our dealer partners, helping them create the most effective layout.”

It Starts With Inventory Analysis

Whether you’re managing a facility or advising one, understanding what’s being stored is the first step toward better space utilization. The 80/20 rule, where 20% of SKUs account for 80% of volume, holds true across most warehouse business models. This insight allows dealers and end users alike to make smarter decisions about what types of racking systems to apply.

For example:

• 1–5 pallets/SKU: Standard selective rack
• 6–9 pallets/SKU: 2–3 deep pushback
• 10–19 pallets/SKU: 3–4 deep pushback
• 20+ pallets/SKU: 4–6 deep pushback

Matching the right system to SKU profiles allows both parties to maximize density without compromising access or product flow.

According to Tushar Karanwal, Technical Sales & Design at 3D Storage Systems, “We were able to show one food distributor that we could store just 150 of their SKUs in high density storage and save over 10,000 square feet. This allowed them to repurpose the space with additional selective rack to help increase the number of bottom level pick locations.”

The Power of Pushback Racking

Pushback racking is one of the most effective ways to densify your warehouse footprint without sacrificing accessibility. With lane depths up to 6 deep, pushback systems offer high-density storage that supports FIFO and fast product turnover.

In fact, shifting from standard selective racking to pushback can result in:

• Up to 100% more pallets stored in the same footprint
• Reduced forklift travel time

This makes it a standout solution for facilities with medium-to-high pallet counts per SKU, and a smart recommendation for dealers looking to differentiate their offering through engineered value.

“Because pushback allows different products to be stored on different levels, unlike other high-density options like drive-in or bulk stacking, it reduces honeycombing and improves storage density,” explains Kevin Minkhorst. “Dealers who present pushback options often differentiate themselves from less capable firms that generally just recommend selective rack.”

Four Real-World Layouts Compared

To show how design impacts space, consider these simplified layout scenarios from 3D’s design team, used often in partnership with dealers working on client proposals:

In Solution C, the customer achieves the same storage capacity as Solution A while using nearly half the footprint. For both end users and their dealer partners, that’s a compelling story of space and cost efficiency.

While these comparisons are relatively simple, they do help dealers present a strong business case for layout redesign versus facility expansion.

What’s Holding Facilities Back?

Many warehouses rely on outdated or inherited layouts. Common reasoning includes:

• “We’ve always done it this way.”
• “Standard selective rack is the cheapest”
• “Expansion is easier than redesign.”

But this mindset can lead to underutilized space, higher operating costs, and missed opportunities.

For dealers, this is where added value lies, moving beyond rack supply into consultative layout strategy. And for end users, working with a partner who understands this nuance can be the difference between short-term fixes and long-term efficiency.

Stop Doing This:

• Blindly expanding square footage
• Relying solely on bulk floor stacking
• Ignoring SKU velocity in storage decisions

Smarter Design is a Team Effort

Space optimization is most successful when dealers, end users, and design engineers collaborate from the start.

At 3D, we don’t just build high density storage products, we help design storage strategies. Our team works closely with dealers to co-design layouts based on real-world data, helping them deliver tailored solutions that solve root problems for their clients.

What We Offer Our Dealer Partners:

• Design-ready layouts based on inventory analysis
• Optimized mixes of selective, pushback, and specialty systems
• Visual aids and ROI models to help close deals

And for warehouse operators, that means receiving guidance that’s backed not just by product knowledge, but by engineering insight.

“Our dealers who take an open approach and lead with design, supported by 3D, win more business and retain longer-term clients,” says Tushar Karanwal. “Their customers appreciate that they took the time to study the issues and offer alternative solutions.”

Maximize What You’ve Got

You don’t need a bigger building. You need a smarter one.

Whether you’re a dealer advising clients or a warehouse manager rethinking your layout, the path to higher efficiency runs through engineered design, not more square footage. By analyzing your inventory, choosing the right racking systems (especially pushback), and partnering with a team that prioritizes strategy, you can possibly double your capacity without ever breaking ground.

In dynamic storage environments that require sophisticated systems like pallet flow racking, the humble pallet plays a starring role. A warped board or broken bottom deck doesn’t just pose a safety risk—it can sabotage your system’s performance, create delays, and increase costs.

High-Density Systems Rely on Precision

In selective racking, a slightly damaged pallet may not be a big issue. But in systems like pallet flow racking whether wheels or rollers, small variances make a big impact. These systems rely on smooth, uniform movement and aligned interfaces. A bad pallet doesn’t just slow things down—it can disrupt an entire lane.

Pallet flow systems are designed to maximize space and efficiency, but they also assume one critical factor: that an organization’s pallets are in good condition.

The Engineering Behind Good Pallet Quality

Poor-quality pallets can cause:

– Pallets to jam or drift sideways

– Product damage from pallets drifting into upright frames

– Increased wear and tear on components

– Worker safety risks when clearing blockages

These aren’t minor issues. A jammed pallet deep in a pallet flow lane can shut down an entire aisle, forcing manual intervention, unloading, and sometimes even dismantling part of the system to correct it.

The Cost Is More Than Just Time

When evaluating the cost of your racking system, consider the true cost per pallet stored, which includes not just the structure but the operating environment: labour, downtime, equipment use, and product loss. A high-density system’s ROI depends on consistent throughput, and bad pallets undermine that.

The math speaks for itself: one system layout in a freezer warehouse showed how pushback racking could cut floor space nearly in half while storing the same number of pallets. But that efficiency collapses if the system can’t be trusted due to jammed or damaged pallets.

Today’s supply chain trends are compounding the problem:

– Lighter, weaker packaging designed to reduce shipping costs also makes pallets more fragile.

– More SKUs and fewer pallets per SKU require more racking changes and movement.

– Tighter warehouse footprints, with less room for error or downtime.

– FIFO enforcement, especially in food, pharma, and regulated industries.

These trends make pallet quality a technical concern, certainly, but also a business risk.

What Makes a Pallet “Pallet Flow-Ready”?

In high-density dynamic systems, the best pallets:

– Have consistent dimensions, especially bottom board spacing and length

– Maintain load integrity under dynamic movement

– Avoid broken boards, protruding nails, or softwood boards that collapse

– Are inspected regularly and rotated out when damaged

There is also the weight of the load itself. If the goods weigh over a certain amount, you need to be certain the pallet is of sufficient quality to handle them.

While wood pallets are still most common, some high-volume facilities are exploring plastic pallets for their uniformity, though the upfront cost is higher. Your best choice depends on your system configuration and throughput.

“The design of the plastic pallet is crucial,” says Kevin Minkhorst, CEO of 3D Storage Systems. “As many out there have ribbed bottom surfaces that will prevent a pallet from rolling.  Make sure you have the Pallet Flow manufacturer test the suitability of your pallets before (a) purchasing the pallets and (b) buying the flowrack system.”

Protect the Investment

A pallet flow racking system is a significant investment, designed to cut costs, save space, and increase efficiency. But it’s only as reliable as the pallets running through it. As Kevin Minkhorst often explains: “A single poor-quality pallet can undo all the gains you’ve made with a high-performance system.”

The bottom line? If you’re serious about storage efficiency, don’t overlook the platform beneath your product.

Distribution center metal rack storage systems do far more than hold pallets. They influence how efficiently your team works, how safely goods are handled, and how scalable your operations can be.

The Cost of Sticking With “What We’ve Always Done”

Too many distribution centers are locked into outdated or mismatched racking systems, either because “we’ve always done it this way,” or due to constraints imposed by legacy floor plans. But the wrong system costs more than just operational friction. It affects capital costs, building requirements, product damage rates, and the ability to rotate inventory effectively.

Many facilities default to selective racking because it’s familiar. But familiarity doesn’t equal efficiency.

“Space and labour are just too expensive to ignore anymore. High-density storage pays for itself,” says Kevin Minkhorst, CEO, 3D Storage Systems. 

While selective rack might seem “cheap” at the outset, modern alternatives like pushback racking allow for much higher density and better use of the cube, often reducing the need for facility expansion altogether.

According to Minkhorst, some warehouse managers resist high-density solutions out of fear they’ll lose flexibility. But those same teams often admit their inventory hasn’t changed significantly in years.

“Selective racking feels more flexible,” Minkhorst explains, “But when I ask if their inventory has actually changed in the last years, most say no. Sure, old products die out and new products come in, but the ratios remain pretty constant.  The perceived flexibility is often theoretical.”

Most warehouses operate on inherited logic from the ’80s and ’90s, when land and labour were cheaper and volume was lower. Today’s costs and SKU counts require a smarter approach.

There’s No “One-Size-Fits-All”

An analysis of distribution center inventory typically reveals that different types of storage are required to optimize throughput and space usage. The best design aligns the racking system with product velocity, SKU density, and handling equipment.

Consider These Key Variables:

• Number of SKUs vs. number of pallets per SKU
• Desired pick accessibility (FIFO/LIFO)
• Warehouse temperature (ambient vs. freezer)
• Available vertical space
• Material handling equipment (standard vs. specialized lift trucks)
• Matching Racking Systems to Inventory Profiles

Here is a breakdown of how different systems perform under common distribution center scenarios:

Minkhorst emphasized that many facilities now benefit from a hybrid strategy, combining pushback with floor storage or selective rack.

“In some cases, we install pushback above existing floor storage, so you’re not paying to rack product you’re already storing on the floor, but you gain 2–3 levels of vertical storage above.”

This kind of layering is especially common in beverage warehouses, where high-turn items are kept low for accessibility, and slower-moving SKUs are stored higher up.

Why Pushback Racking Is a Game-Changer for Distribution Centers

In many distribution environments, especially where the top 20% of SKUs drive 80% of the volume, pushback rack offers a compelling ROI. It provides high-density storage, better height utilization, and maintains good average occupancy rates. In freezer warehouses, the space savings can be dramatic:

• Pushback systems can reduce building size by up to 47% for the same pallet count as selective rack.
• 5-deep pushback systems can nearly double storage capacity in the same square footage.

When SKU velocity supports it, pushback racking is not just a cost-effective choice, it can redefine what’s possible with your footprint.

A Real-World Example: Mevotech

Mevotech, a client in the manufacturing sector, found itself landlocked after closing a great deal on two smaller warehouse buildings near the Toronto Pearson airport.

“The buildings were too small to lay out with selective racking and get the pallet count they needed, remembers Minkhorst. “By using pushback, pallet flow and VNA, we hit the numbers without needing a bigger footprint.”

It was a classic win: the client saved on real estate and still achieved optimal capacity by adopting a denser, smarter racking solution.

The ROI Is in the Mix

The lowest-cost storage solution is the one that matches your SKU profile. For example:

• High movers with 10+ pallets/SKU: 4- to 6-deep pushback
• Slow movers with low volume: selective rack
• Large, slow items: floor storage or drive-in rack

A mixed strategy, backed by inventory analysis, consistently outperforms single-type layouts in both cost and productivity.

Start With an Inventory Analysis

Before investing in any metal rack storage system for your distribution center, start with an SKU analysis. Determine how many pallets per SKU you have and how quickly each SKU moves. This data will tell you:

• Which SKUs need fast pick access
• Where you can use deep-lane storage
• How to plan for future growth without overbuilding

Having an Inventory Analysis done for your storage scenario can be game-changing.

“Sometimes when we review a client’s inventory we find they’ve got 50+ pallets per product for a dozen SKUs. That’s high-density territory,” explains Minkhorst. “They’ve often never considered it because they’ve always done things the same way.”

These moments reveal the real power of understanding SKU profiles, not just for racking decisions, but for overall space and cost optimization.

3D Storage Systems offers a custom inventory analysis service. It’s designed to identify the best mix of storage systems based on your actual inventory data, SKU velocity, pallet count, pick frequency, and product flow. Whether you need selective, pushback, pallet flow, or a hybrid configuration, the right setup starts with knowing what you’re storing and how it moves.

It’s a low-effort step that can unlock major gains in space efficiency and long-term scalability.

An inventory analysis can also shed light on when to recommend high-density racking.

Minkhorst is clear on this point: only when it’s justified.

“I wouldn’t recommend high-density storage to a startup that doesn’t know its inventory yet. It’s only appropriate when the volume is there. We’re not in the business of overselling rack that won’t be used well.”

That level of honesty reinforces 3D’s engineering-first approach: the solution must match the data, not the sales target.

Final Thought: Efficiency Is Intentional

Designing a distribution center isn’t about filling space with racking, it’s about building an operational backbone. A well-thought-out storage system does more than hold product. It creates flow. It reduces labour. It minimizes damage. And in tight-margin industries, it protects your bottom line.

At 3D Storage Systems, we often say: “Let gravity do the work.” But understanding when and how to apply gravity-fed systems correctly is the key to real gains.

While terms like “gravity-fed racking” and “gravity flow” are sometimes used interchangeably, they refer to different concepts that matter when planning an effective storage strategy. Let’s clarify the difference and what it means for your warehouse.

Gravity-Fed Racking vs Gravity Flow: What’s the Real Difference?

Gravity-fed racking is a broad term for any storage system that uses sloped structures to move goods with the force of gravity. This includes systems like pallet flow racking and pushback racking.

However, true “gravity flow” as experts at 3D define it, means that products are loaded at a higher point and move unassisted to a lower point, from the loading zone to the picking face. This describes pallet flow racking specifically.

Pushback systems, by contrast, load and unload from the same side. While they use gravity to return pallets toward the aisle, they require manual push to load. It’s a critical distinction when selecting the right system for your needs.

Kevin Minkhorst, CEO of 3D Storage Systems, explains: “If you’re loading and unloading from the same side, you’re not talking about gravity flow, that’s pushback.”

“You  want to put the right inventory in the right storage product. That’s where the real efficiencies are found.”

When Does Gravity-Fed Racking Make Sense? (It Starts with Volume)

Volume is the first consideration when choosing a gravity-fed system. Without sufficient volume per SKU, gravity-fed options like pushback and pallet flow aren’t justified.

• Pushback systems typically require 5–10 pallets per SKU.

• Pallet flow systems usually require 20+ pallets per SKU to be viable.

Kevin Minkhorst notes: “If you only have a few pallets per product, then pushback or pallet flow just isn’t for you. You need real volume to justify those systems.”

If your inventory falls below these thresholds, standard selective racking or floor storage may be a better fit.

Pushback vs Pallet Flow: Why Pushback Is Often the Smarter Choice

While pallet flow systems offer pure first-in, first-out (FIFO) inventory rotation, pushback often delivers:

– Similar storage density at a lower cost

– Greater reliability due to rugged components

– Better tolerance for imperfect or mixed-quality pallets

– Simpler maintenance with fewer moving parts

Customers often approach 3D Storage Systems asking for pallet flow because they’ve heard it ensures FIFO. But as Kevin Minkhorst notes: “We don’t sell pallet flow, customers buy it. It’s one of the harder systems to justify unless you truly need it.”

Pallet Quality: The Deciding Factor No One Talks About

Pallet quality can make or break the success of a gravity-fed system, yet many clients don’t consider it upfront.

Pallet flow requires pallets to be near-perfect in size, weight distribution, and construction. One broken board or poorly constructed pallet can cause jams, downtime, and costly system interventions.

Pushback systems are more forgiving, but extreme cases still require special adaptations like full-support mesh decking.

Kevin Minkhorst states: “Sixty to seventy percent of the time, clients haven’t even considered pallet quality when thinking about warehouse solutions. That’s a critical oversight.”

At 3D, the first question we ask when a customer requests pallet flow is, “Can we see your pallets?” If the answer reveals inconsistent or poor-quality pallets, we recommend rethinking the approach before investing.

Matching the System to the Inventory

Gravity-fed racking becomes even more effective when aligned with your inventory profile. Here’s how it typically breaks down:

From the “Storage Type Rule of Thumb” chart, “Average Pallets per Product” with system recommendations (Standard Rack, Drive-In, Pushback, Flowrack). 

Why Hybrid Layouts Usually Win

Very few warehouses operate efficiently with a single storage system type. A hybrid layout almost always outperforms one-size-fits-all designs unless you’re running a manufacturing environment with extremely high volumes and few SKUs (like beverage bottlers or major grocers).

Slow movers? Standard selective racking.

Medium turnover items? Pushback.

High-volume, FIFO-critical SKUs? Pallet flow (if pallet quality and volume justify it).

Bulk overflow? Floor storage.

Kevin Minkhorst summarizes: “You  want to put the right inventory in the right storage product. That’s where the real efficiencies are found.”

Every warehouse is unique. At 3D Storage Systems, we design layouts that match inventory profiles to storage methods intelligently, blending systems for maximum density, throughput, and ROI.

Gravity Works, If You Let It

Gravity-fed systems are powerful allies for warehouse efficiency. But only when applied thoughtfully based on volume, SKU velocity, pallet quality, and operational discipline.

If your current layout isn’t leveraging gravity properly, or if you’re struggling with storage bottlenecks, damage, or inefficiencies, it might be time to reexamine your approach.

Let the experts at 3D Storage Systems help you design a smarter, gravity-optimized solution.
Contact us today for a free inventory analysis and layout consultation.

This article provides actionable strategies for warehouse managers to make the most of their available space, leveraging insights from industry experts.

Understanding Warehouse Space Constraints

The Rising Cost of Warehouse Real Estate

Warehouse real estate costs have skyrocketed roughly threefold over the last 20 years. This significant increase drives the need for higher-density storage solutions. Companies must weigh the cost of adding new warehouse space against enhancing existing space. For example, optimizing current space is almost always more cost-effective than expanding.

The Role of Column Spacing and Building Layout

Pre-existing warehouse structures often limit storage configurations. Column spacing affects racking layout and forklift maneuverability. A well-designed layout can significantly improve space utilization. If possible, and if you are looking at a new build situation, designing the building around the warehouse layout can result in the most effective solution.

Choosing the Right Storage Systems for Maximum Space Utilization

Standard Pallet Racking vs. High-Density Storage

Different storage systems serve different needs. Standard selective racking, pushback racking, pallet flow, and floor stacking each have their advantages based on SKU count, turnover rate, and space availability.  Selective rack is generally used when there is a need for storage of many SKU with low pallet counts per SKU.  High-density storage solutions like pushback and pallet flow racking offer better flexibility and efficiency than drive-in racking due to SKU proliferation.

Most well thought out layouts contain a variety of storage types to suit the requirements of the inventory – selective rack for the small quantities, products like pushback for the medium quantities and floor storage or pallet flow for the products that are high throughput and have large numbers of pallets per SKU.

The Impact of Regulations on Storage Design

RMI Standards and Their Effect on Rack Design

Over time, improving RMI regulations have increased steel requirements, making racking systems safer but also more expensive. Companies must balance the need for stronger, safer racking with increased costs. Stricter engineering requirements and permitting must be considered when planning warehouse expansions.

Fire Safety Regulations and Storage Density

Fire and Insurance regulations now limit deep storage configurations. With new systems, companies must either install in-rack sprinklers or adjust racking layouts.  However, creative designs can result in High Density Storage while still meeting these new regulations.

The Role of Automation in Warehouse Optimization

Why Full Automation is Still a Long-Term Play

While automation offers significant benefits, adoption is slow due to high costs and uncertainty in knowing which vendors are capable of providing such complex systems.  There have also been instances of systems not being able to provide the required throughput leaving companies unable to ship product to meet peak demand.  Going forward, these systems will improve and industry leaders will emerge, but at the moment the ROI for automated storage systems often exceeds 5-10 years.

Practical Steps to Optimize Your Warehouse Layout

Conducting a Warehouse Audit

A warehouse audit is essential to identify inefficiencies. Assess SKU velocity to identify high-movement items and low-turnover stock. Evaluate current space usage to pinpoint areas for improvement.

Implementing a Hybrid Storage Model

A mix of selective racking, pushback racking, pallet flow, and shelving can optimize space utilization. Strategic SKU placement can reduce retrieval times and increase efficiency.

Leveraging High-Density Storage to Avoid Expansion Costs

Increasing storage density can save on long-term real estate costs. Many companies that have implemented high-density racking have successfully avoided the need for warehouse expansion.

Future-Proofing Your Warehouse Strategy

Warehouse space optimization is crucial in today’s market. Key takeaways include investing in high-density storage before expanding your footprint, adapting storage layouts to regulatory requirements, and monitoring automation trends. Regularly reassessing storage strategies as real estate costs and industry trends evolve is essential for maintaining efficiency and cost-effectiveness.

The landscape of warehousing and distribution has undergone a significant transformation in recent years. With the rapid rise of e-commerce, shifting consumer demands, and increasing real estate costs, high-density storage solutions have become critical for optimizing space and improving operational efficiency.

Kevin Minkhorst, CEO of 3D Storage Systems has a keen viewpoint on the evolving needs of distribution centers, the impact of automation, and the strategic role of high-density storage systems. With over three decades in the industry, Minkhorst has a wealth of experience to share about the key trends shaping warehouse storage today.

The Shift to E-Commerce and Its Impact on Storage

E-commerce has dramatically reshaped storage and fulfillment requirements. Unlike traditional retailers that move full pallets of goods to stores, e-commerce operations require picking and packing of individual items.

“Take Walmart, for example,” says Minkhorst. “Historically, their distribution model involved shipping truckloads of products to large distribution centers, where items were sorted and sent in bulk to stores. But with e-commerce, everything is different. They had to build an entirely new system that could handle smaller quantities, often breaking down pallets immediately into individual SKUs stored on shelving.”

This shift means traditional high-density storage solutions like pushback racking or pallet flow are less suited for e-commerce fulfillment, as they rely on full pallet loads. Instead, multi-level shelving and automated picking systems have taken precedence in this space.

Where High-Density Storage Fits In

Despite the growing focus on e-commerce, high-density storage remains essential for businesses managing large inventories of bulk goods. Industries such as grocery, consumer goods, and manufacturing continue to rely on pushback and pallet flow racking to maximize storage efficiency.

“In frozen food storage, for example, we’re seeing a huge increase in demand for high-density solutions,” Minkhorst shares. “Many of the jobs we look at these days have a frozen component because consumers are shifting to ready-made meals. Grocery store freezers used to be one aisle—now they’re multiple aisles.”

“In frozen food storage, for example, we’re seeing a huge increase in demand for high-density solutions. Many of the jobs we look at these days have a frozen component because consumers are shifting to ready-made meals.”

The trend toward frozen food storage highlights the need for compact, high-density systems that can store multiple pallets of the same product efficiently.

The Role of Automation in Storage

Automation is often cited as the future of warehousing, but adoption has been slow outside of the largest companies. While automated guided vehicles (AGVs) and robotic picking systems are making inroads in manufacturing and large-scale e-commerce fulfillment centers, the cost remains prohibitive for most mid-sized warehouses.

“In my 35 years in the industry, I’ve only seen automation interact with our racking systems a handful of times,” says Minkhorst. “Automated forklifts will probably be the first major wave of adoption since they don’t require the same level of infrastructure investment as fully automated storage systems.”

Trends in Warehouse Development

The construction of new distribution centers is largely driven by two factors:

• Population Growth – As regional populations expand, new storage and distribution facilities must be built to support demand.
• Corporate Expansion – As businesses scale, their distribution networks must grow alongside them.

“Warehousing follows population trends,” Minkhorst explains. “If a region’s population is growing, the demand for storage grows with it. At the same time, real estate costs have skyrocketed, making it more expensive to expand.”

To counteract rising costs, companies are turning to high-density storage to maximize space utilization within existing warehouses. 

“The cost of warehouse real estate has shot up dramatically,” Minkhorst adds. “It used to be that you could build a warehouse for around $40 – $50 per square foot. Now, in some areas, it’s upwards of $120 per square foot. When real estate costs increase that much, optimizing your storage density becomes even more critical. It’s no longer just about efficiency—it’s about financial necessity.”

“It used to be that you could build a warehouse for around $40 – $50 per square foot. Now, in some areas, it’s upwards of $120 per square foot.”

This steep rise in property costs has reinforced the value of high-density storage, helping companies avoid the expense of expanding their footprint unnecessarily while still increasing pallet capacity.

Regulatory Changes and Their Impact on Storage Design

As warehouse operations evolve, building codes, safety regulations, and industry standards continue to change, directly impacting the design and cost of storage systems. Two major regulatory shifts in recent years have shaped the storage industry:

1. Stricter Engineering Standards for Racking Systems

Changes in structural engineering standards—driven largely by the Rack Manufacturers Institute (RMI) and new building codes—have significantly increased the amount of steel required in racking systems. This shift, while enhancing safety, has made storage solutions substantially more expensive.

“The RMI sets the engineering standards for racking, and every time they meet, the requirements get stricter,” explains Minkhorst. “Frames that used to be built with a certain amount of steel now require twice as much steel to meet today’s standards. A racking system that was perfectly functional 20 years ago wouldn’t pass the new requirements.”

While these regulations have improved warehouse safety, they have also driven up costs.

“Pushback racking that used to cost $200 per pallet now costs $400 per pallet—and it’s the same product, just with more steel in it,” says Minkhorst. “These new requirements aren’t necessarily bad, as they enhance safety, but you can see why costs keep rising.”

2. Fire Safety Regulations and Their Effect on High-Density Storage

Another major regulatory shift involves fire protection requirements, particularly those set by FM Global, one of the world’s largest industrial insurance companies.

“If you exceed five pallets in a row, you now have to leave a gap or install in-rack sprinklers,” Minkhorst notes. “This is pushing companies to rethink their storage layouts, often opting for shallower pushback racking configurations to stay compliant.”

Previously, warehouses could use deep pushback systems—five or six pallets deep, back-to-back—without additional fire suppression measures. Under new fire codes, facilities using deep racking must either:

• Install in-rack sprinkler systems (which increases cost and risk of accidental damage)
• Leave a minimum four-foot gap between deep racking sections to act as a firebreak

As a result, some companies are reducing the depth of their high-density storage to avoid the extra cost of in-rack sprinklers while maintaining compliance.

While these regulations enhance safety, they come at a cost to warehouse operators.

“Rack prices have doubled due to the new standards, and fire safety codes now require additional spacing or costly sprinkler systems. At the same time, real estate prices are soaring,” Minkhorst explains. “All of this makes high-density storage more essential than ever—because every square foot saved in a warehouse translates into serious cost savings.”

The Decline of Drive-In Racking

One notable shift in the industry is the decline of drive-in racking systems, which were once popular for high-density storage.

“Drive-in racking is becoming obsolete because most companies now deal with more SKUs and fewer pallets per SKU,” Minkhorst explains. “Pushback racking has largely replaced drive-in because it allows for better SKU management while maintaining high density.”

“Pushback racking has largely replaced drive-in because it allows for better SKU management while maintaining high density.”

Drive-in racking works best when storing large quantities of the same product—for example, in industries like beverages or frozen food where entire lanes can be dedicated to a single SKU. However, as inventory strategies shift to smaller, more diverse stock-keeping units (SKUs), drive-in storage no longer provides the flexibility that many warehouses need.

Converting Drive-In Racking to Pushback

For companies with existing drive-in racking, conversion to pushback racking is an option—but it requires proper clearance and structural integrity.

“We do drive-in conversions where possible, but the challenge is that drive-in racks take a lot of damage over time from forklifts constantly driving into them,” Minkhorst says. “Before we can retrofit a system, we have to assess the condition of the existing structure—and in many cases, it’s been beaten up too much to reuse.”

Another key factor in drive-in to pushback conversions is clearance height.

“You need a minimum of 12 inches of clearance above each pallet to properly install a pushback system,” Minkhorst explains. “If you only have 6 inches of clearance, you’re out of luck—you won’t be able to drop in a pushback system without modifying the entire racking structure.”

“Before we can retrofit a system, we have to assess the condition of the existing structure—and in many cases, it’s been beaten up too much to reuse.”

In some cases, adjustments to beam levels can create the necessary clearance. However, if damage to the existing drive-in rack is too severe, a full replacement may be required.

“Drive-in racks are often 20 or 30 years old,” Minkhorst says. “By the time companies realize they need more SKU flexibility, their old drive-in system is too damaged to retrofit, and they end up having to start from scratch.”

Why Pushback Racking is the Preferred Alternative

The decline of drive-in racking has coincided with the rise of pushback racking, which provides greater flexibility while maintaining high-density storage.

“In pushback racking, every level is independent, so you can store different products on different levels,” Minkhorst notes. “With drive-in, every pallet position in a lane has to be the same product—both horizontally and vertically. That just doesn’t work for most companies anymore.”

For businesses looking to optimize storage, the move away from drive-in racking is part of a larger industry shift toward more adaptable, SKU-friendly high-density solutions like pushback.

Strategic Considerations for Storage System Selection

When designing a storage system, companies must balance several factors:

Forklift Compatibility – The type of forklift equipment dictates aisle width and accessibility.

Building Constraints – Column spacing and warehouse layout impact racking configurations.

Inventory Characteristics – The number of SKUs and pallets per SKU determines whether high-density storage is appropriate.

Operational Efficiency – Storage layout should optimize access to frequently picked items while maximizing space usage.

“Warehouse design has to be a mix,” Minkhorst emphasizes. “You’ll always have some standard pallet rack, some high-density storage, and sometimes shelving. It’s about strategically placing these elements for maximum efficiency.”

Future-Proofing Storage Strategies for a Changing Industry

High-density storage remains a cornerstone of efficient warehouse management, especially as companies face rising real estate costs and shifting distribution models. While automation continues to evolve, traditional storage solutions like pushback and pallet flow racking still play a vital role in optimizing space and streamlining operations.

As the industry adapts to changing consumer behaviours and regulatory pressures, businesses must take a strategic approach to storage, ensuring their systems align with both current and future needs. By leveraging high-density storage solutions where appropriate, distribution centers can maintain efficiency, reduce costs, and stay competitive in an ever-evolving marketplace.

They also ensure better handling and increased accessibility. With cost effectiveness, space optimization, and efficient inventory management, pushback racking gives you a competitive edge over other storage methods. 

Let’s explore the advantages, features, and different designs of pushback racking and how it serves as an effective and optimal storage method for modern warehouse needs.

What Is Pushback Racking?

The pushback racking system is an agile and high-density storage solution. This system allows adequate housing of several pallets deep in a single lane, with different stock-keeping units (SKUs) in each lane. 

Pushback pallet racking also has a single loading and unloading pick face at the front, the unit loads are stored by pushing the previous ones to the back of the system. It means each pallet is seamlessly pushed back as new pallets are added; hence the term “push back.” 

Although it’s a LIFO storage system, you can easily switch to First in First Out (FIFO) by storing multiple product lanes. Moreover, the system can be combined with other warehousing storage solutions, which makes it a more versatile storage option.

What are the Features of Pushback Racking System?

The pushback racking system is thoughtfully designed for LIFO goods management, where the last pallet on the rack is the first to be unloaded. Here are a few more prominent features of pushback inventory management: 

1. Easy Movement: This racking system makes use of nested carts and inclined rails for each storage lane. The gravity-assisted movement allows pallets to easily move back and forth within the structure.
2. Single Work Aisle Accessibility: Unlike the other storage systems, pushback racking does not require a separate aisle for loading and unloading. Here, the forklift does not enter the racking, and the goods can be easily accessed from a single aisle. 
3. Smart Loading: Forklifts place new pallets into the system by pushing back previously loaded pallets. These pallets are placed on the cart or rail position at the front of the rack, so when new pallets are placed, they push back the previously placed goods to the back of the system.

Effortless Unloading: Similar to loading, unloading also works seamlessly with this system. In order to retrieve a pallet, the operators simply remove the front pallet and the pallets behind roll forward with the help of gravity.

What are Some Special Pushback Designs?

Pushback racking has some advantages for non-standard applications as it’s customizable. For instance, if your application has plastic pods or you deal with heavy pallets of over 3000 pounds, modified pushback designs will work best for you. 

Some adaptable pushback designs for versatile applications are mentioned below.

1. Ladder Style or Covered Cart Pushback

Not all pallets come in perfectly symmetrical shapes and sizes. Therefore, for weak and odd-shaped pallets or pallets which need more support, 3D Storage System’s ladder-style pushback lanes are perfectly suited to handle such non-standard applications.

Ladder style lanes provide:

• Additional Support: For pallets without bottom boards running left/right, ladder style lanes have structural cross ties which help support odd pallet designs. Additional supports can be added – like mesh, bar grating or steel sheets.
• Fully Supported Rail Position: Ladder systems have cross supports built into the last position, so every pallet position is well supported. 

2. Drive-in Conversion

Due to more product types in their stocks, some customers face trouble with honeycombing in their drive-in systems. To overcome this issue, many warehouses have to reprofile their existing drive-in systems. However, a “drop-in” style pushback system resolves this issue without needing a major overhaul.

Drop-in style pushback lanes are highly preferable for retrofitting existing drive-in rack systems, as they not only save the expense of a new rack but also minimize the installation and labour cost. 

3. Floor Mount Lanes

Floor mount lanes are used to optimize the vertical space in a tight ceiling clearance. These floor mount lanes reduce the starting height of the pushback system by eliminating the beams in the front and internal beam intermediate positions. 

Typically, the first beam height of a standard system is 8”-10”. By utilizing a floor mount, this height is reduced to 3”, this way, it saves 5”-7” of overall height. Not only this, but these floor mount lanes are also helpful while picking cases from the bottom level. 

4. 48” FACE FOR GMA/CHEP STYLE PALLET

This specific pushback racking design accommodates GMA/CHEP style pallets when turned on the “Cut-Out” face. As carts require easy access to the fork, here, the front ties of the cart are dropped to make the cart surface level. 

5. Heavy Duty Systems

For heavy-duty systems, pushback designs must be able to handle at least 3000 lbs. For loads above that, further modification must be made in the carts and rails so that the design can easily tolerate up to 5,000 lbs. Moreover, these designs can accommodate stockings from 2 to 6 pallets deep.

Advantages of Pushback Racking System

The advantages of pushback racking go beyond better space utilization. Here is a breakdown of the prominent benefits of using this efficient storage system: 

• Maximum Space Utilization: The prime advantage of a pushback racking system is that it allows excellent use of space. Whether the space is vertical or a bit congested, the pushback racking system allows the storage of multiple pallets in the same lane, reducing the number of aisles in the warehouse.
• Enhanced Selectivity: Other than space maximization, easy access to the desired goods is equally important. In a pushback racking system, each level stores a separate SKU, which means goods can be retrieved easily without emptying the whole bay. 
• Cost Saving: Compared to other storage systems, pushback design requires minimum labour as it requires lesser manual handling and forklift travelling within the warehouse. Not to mention, storing multiple pallets in a single lane reduces the frequent need for restocking and replenishments. 

What is the Cost of Pushback Racking?

Pricing of the pushback racking system may vary depending on rack height, lane depth, pallet weight, and configuration. Typically, the pushback racking system ranges between $120 to $250 per pallet.

However, there may be other factors affecting the cost; for instance, two deep pushbacks tends to be less expensive than four deep pushback, as deeper pushbacks require more steel. 

Why Should You Choose 3D Storage Solutions for Pushback Racking Systems?

Being a leading provider of pushback racking systems, 3D Storage Systems specializes in providing specially modified pushback racking designs for versatile warehousing needs. 

We deliver highly customized and practical storage solutions, including push-back racking, pallet flow racks, and carton flow racks, perfect for high-density storage. Contact us now and discuss your specific inventory management requirements. You can also request a free quote or drawing before proceeding further with your project.