Vertical Metal Racks to Increase Capacity and Reduce Dispatch Time in a Battery Warehouse: Case Study

Abstract

In many industrial warehouses, floor-level storage restricts the use of available cubic space and tends to prolong outbound operations. This study reports an applied case in an industrial battery warehouse in Peru, where a vertical storage system using five-level metal racks was implemented to increase capacity and reduce dispatch time. A quasi-experimental before–after design without a control group was used, comparing 12 weeks prior to the intervention with 12 weeks after implementation. Approximately 180 dispatches were recorded for each condition, and for inferential analysis, weekly averages were paired by product family, order volume, and shift (n = 12 pairs). The main performance indicators were installed capacity (available storage positions for unit loads) and dispatch time per unit load, measured through time studies and operational records. After rack installation and warehouse layout reorganization, capacity increased from 125 to 200 unit loads (+60%), and average dispatch time decreased from 50 to 15 minutes (–70%), with statistically significant improvement in dispatch time (paired t-test, p < 0.001). Total investment was US$ 4,434, and the estimated annual labor-hour savings reached US$ 1,817, resulting in an approximate payback period of 2.44 years. Overall, the results show that vertical racking, even with a moderate investment, can tangibly improve space utilization and warehouse operational performance.