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Storeganizer for 3PL and E-Commerce Fulfilment

Absorb a new client’s SKUs without another lease. Storeganizer pocket columns convert half-empty small-item shelving into hundreds of dense, barcoded pick faces inside your existing pallet rack — and unhook and move again when the contract changes.

Storeganizer pocket columns installed across pallet rack bays at an electronics distributor

The 3PL problem: more SKUs, the same building

Aisle of Storeganizer textile pocket columns hanging in pallet rack in a distribution centre

Third-party logistics and e-commerce fulfilment operations run into the same wall from two directions. Client SKU counts keep climbing while units per SKU fall, and the building cannot grow on the timetable the contract was won on. Rent, labour and pick rate are all measured per square foot, so anything that raises SKU density inside the existing footprint goes straight to margin.

The awkward truth is that most of the wasted cube in a fulfilment centre is not in the pallet positions — it is in the small-item shelving. Slow-moving client SKUs sit one carton to a shelf level, and pickers walk past hundreds of feet of half-empty shelving to hit a handful of lines. Storeganizer converts that shelving area into vertical columns of right-sized textile pockets hung in pallet rack, up to four rows deep, and turns a bay into as many as 396 discrete pick locations.

What fulfilment operations have measured

Operation Change made Reported outcome
Ingram Micro UK National Distribution Centre (technology distribution, three warehouses, 162,000+ sq ft) Storeganizer introduced as a key phase of a six-phase redesign specifically to release space for fast movers Released twice the space of the room it replaced while only about 80% full; roughly 10 seconds faster per pick; 40% more SKUs hit per unit of travel distance; pick rate up from about 75 to about 90 lines per hour
Chalhoub Group (luxury retail distribution, Dubai region, ~860,000 sq ft across 12 sites) 8,611 sq ft of static mezzanine shelving consolidated into 46 bays, three rows deep, six columns high — 828 pick modules Same inventory in 1,335 sq ft; picking from 25-30 up to 60-80 lines per hour; operational efficiency up around 30%; two fewer full-time staff; fewer mis-picks with one SKU per pocket
FM Logistic Evaluated against denser storage alternatives Reported storing more than twice as much at a lower price, described as an excellent ROI
Ingram Micro Northampton Assessed vertical carousels and paternosters against pocket columns Concluded the benefits of the alternatives were “far less than those of a Storeganizer solution”

Figures as reported by the operations named. Independent research at the University of Leuven measured averages of 40% more usable space, 42% less travel time and 26% better picking efficiency versus conventional rack and shelf.

Why it fits a 3PL operating model specifically

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Redeployable between clients

Columns unhook and rehang. When a contract ends, the asset moves to the next client’s profile instead of being scrapped or left idle.

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Capital, not a service contract

No drives, no motors, no annual maintenance agreement and no software licence — which matters when a contract term is three years and the payback has to land inside it.

Live in days, not quarters

No anchoring, permits, power or WMS integration. A run of bays goes in during a shift and can be commissioned bay by bay while picking continues.

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Handles the long tail

Low units per SKU is the worst case for shelving and the best case for pockets: one SKU, one right-sized location, one barcode.

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Client-visible accuracy

Discrete labelled locations per SKU cut mis-picks, which is usually the KPI a client scrutinises first.

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Automation-ready

Pocket faces are used as the static pick front for AMRs. Densify first, then automate the travel — often with less automation than originally scoped.

Model a client’s SKU profile in the designer

Set your bay height, choose the pocket size that matches the client’s cartons and see how many pick faces you gain per bay before you commit to a layout.

Open the Storeganizer Designer All free design tools

Designing the fulfilment pick face

The configuration decisions that matter most in a fulfilment environment are different from a parts room. In our experience these are the four that move the numbers:

1

Slot the golden zone by velocity, not by client

The temptation in a multi-client operation is to keep each client’s SKUs together. Pick rate improves faster if the fastest-moving SKUs across all clients occupy the comfortable working heights and the slow tail goes high or low.

2

Pick the pocket to the carton, not to the client’s biggest item

One oversized pocket style across a bay throws away most of the density gain. Mixed pocket sizes within a bay are standard and cost nothing extra.

3

Barcode every pocket from day one

Scan-verified picking is what converts density into accuracy. Label holders are fitted to every pocket face; the location scheme should be designed before install, not after.

4

Keep rows-deep honest

Four rows deep gives maximum density but adds a roll-aside movement to reach the back. For your fastest lines, two or three rows deep often nets more throughput than four.

Costing the change honestly

The business case for a pocket-column conversion is usually built from four numbers, and it is worth building all four before anyone signs anything. We will help you put them together, and we will tell you if they do not add up.

1. Square feet released, valued at your real occupancy cost

Measure the shelving footprint that comes out of service, not the theoretical cube gain. Value it at your fully loaded occupancy cost — rent, common area, utilities, insurance and rack — not just base rent. In operations that were about to lease overflow space or take an offsite unit, this single line usually dominates the case, because the avoided lease is a recurring cost and the pockets are a one-time purchase.

2. Labour, from lines per hour

Take your current lines per hour on the area being converted and apply a conservative improvement — the independent Leuven research measured 26% better picking efficiency on average, and individual operations have reported considerably more. Convert to hours per week, then to fully loaded labour cost. Be conservative here on purpose: if the case only works at the top of the reported range, it is not a case.

3. Error cost

One SKU per labelled pocket removes the commonest mis-pick cause. If you know your cost per error — the return, the re-ship, the credit, the client penalty — apply your current error rate to the converted lines and take a partial credit. If you do not know it, leave it out of the numbers and note it as upside.

4. Deferred capital

What were you going to buy instead? A mezzanine, a vertical carousel, a VLM, a building expansion? Those alternatives carry not only higher capital cost but power, service contracts and integration effort. Several operations have told the manufacturer they evaluated carousels or paternosters and concluded the benefit was smaller than a pocket-column solution at a fraction of the cost. Where that is true for you, the deferred capital belongs in the case.

What is not in the number

Freight, sales tax and installation are quoted separately by your MH-USA salesperson once we know the delivery address, dock access and unloading arrangements. Lead time is confirmed on the quote. The designer shows product cost so you can size the case; it is not a landed cost.

Frequently asked questions

Why do 3PLs use Storeganizer rather than more shelving?
Because the constraint is usually the building, not the shelving budget. A 3PL cannot always take more space when it wins a client, and rent is charged on floor area. Pocket columns raise the number of pick faces inside the rack you already have, so a new client’s SKUs can be absorbed without another lease.
Can it be reconfigured when a client leaves?
Yes, and that is a large part of the appeal. Columns unhook from the beam and rehang elsewhere, pocket sizes can be swapped, and bays can be redeployed to a different client’s profile. Nothing is bolted, anchored or wired in place.
Does it work for e-commerce singles picking?
It is one of the strongest fits. Singles picking rewards having many SKUs within a few steps, and pocket columns concentrate SKUs into a dense golden-zone face. Users have reported roughly doubling to tripling lines picked per hour after moving from static shelving.
How does it handle returns processing?
Returns are usually a temporary, unpredictable volume, which is exactly what a mobile Picking Hive unit and quick-to-hang columns suit. See Storeganizer Pick 360 and the Picking Hive.
Can it be part of an automation plan rather than an alternative to one?
Yes. Pocket columns are used as the static pick face that autonomous mobile robots travel to, which is the basis of the Pick 360 configuration. Densifying the face first often reduces the amount of automation needed.

Cost the space you would get back

Send us a client SKU profile and your bay dimensions. We will come back with the pick-face count, the square footage released and what it would take to install it.

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