When designing a distribution centre, one of the most pivotal decisions you’ll make isn’t just about square footage or location, it’s how you plan to store your products. At the heart of that decision is your racking system.
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Too many distribution centers are locked into outdated or mismatched racking systems, either because “we’ve always done it this way,” or due to constraints imposed by legacy floor plans.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:
| Storage System | Best Use Case | Caution |
| Selective Rack | Low pallet counts per SKU (1–5), high SKU variety | Low density |
| Pushback Rack | Medium-to-high pallets per SKU (6–20+), fast-moving items | LIFO stock rotation, if not managed properly |
| Pallet Flow Rack | Very high pallet counts per SKU, FIFO enforcement, high turnover | Requires consistent pallet quality |
| Drive-In Rack | High pallet count per SKU, low SKU variety | Poor accessibility, prone to damage |
| Double Deep | Medium volume SKUs with moderate turnover | Requires deep-reach trucks |
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.