Case Study — Company Success Using Pallet Racking Systems for Storing Lumber and Piping
When it comes to storing long, heavy, and irregular materials like lumber, PVC piping, and rebar, the wrong racking setup can turn a well-run yard into a safety hazard — or a logistical nightmare. But when paired with smart design and digital inventory systems, the right racking solution becomes a foundation for operational speed, space efficiency, and reduced material damage.
This case study highlights how a regional building materials distributor overhauled its outdoor storage setup with ERP-integrated pallet racking — and saw major improvements in space utilization, picking speed, and fulfillment accuracy.
The Background
The company:
Operated 3 yards with over 1,200 SKUs, including 16–24 ft lumber, steel conduit, and PVC pipe
Struggled with ground-stacked inventory and outdated cantilever systems
Faced frequent picking delays, material warping, and loading inefficiencies
Pain points:
Poor inventory visibility for long materials
Frequent mispicks due to visual misidentification
Product damage from weather exposure or improper stacking
Safety issues from unstable loads and narrow forklift lanes
The Turning Point
After a series of delivery delays and near-miss forklift incidents, the leadership team decided to:
✅ Redesign their racking systems across all yards
✅ Integrate racking locations into their ERP
✅ Roll out scanning tools and rack-level labeling for long goods
✅ Standardize handling zones for oversized SKUs
The Solution: ERP-Integrated Pallet and Cantilever Racking
Installed Custom-Fit Racking by Product Type
Cantilever systems for piping and dimensional lumber
Deep-lane pallet racking for palletized heavy goods
Open cradle racks for conduit and flexible tubing
Digitally Mapped All Rack Locations in the ERP
Each rack arm and bay assigned a bin ID
Picking and putaway tasks auto-routed to correct zones
Scanners used to confirm SKU and bin before load/unload
Redesigned Aisles for Long-Load Handling
Increased aisle width by 25%
Added visual guides for forklift clearance
Built staging lanes with weather-resistant flooring for preloaded deliveries
The Results (After 4 Months)
Picking speed improved by 38%
Inventory accuracy for long SKUs increased to 98.7%
Rack damage incidents dropped to zero
Loading errors reduced by 44%
Material loss due to improper stacking fell by 53%
Unexpected Wins
Better use of vertical space freed up ground lanes for vehicle traffic
Faster cross-training due to simplified rack signage and ERP-mapped layouts
Improved vendor unloading efficiency through rack-assigned receiving zones
Lessons Learned
Design racking with SKU behavior in mind — not just available space
Every racking bay should be tracked in your ERP — not just “Zone C”
Investing in layout + labeling + software together multiplies ROI
Even outdoor yards need structure — especially for oversized, job-critical materials
Final Thoughts
This distributor didn’t just upgrade their racks — they upgraded their entire material flow strategy. With the right infrastructure and ERP integration, racking became more than steel beams and bolts. It became a smarter, safer, more profitable part of the operation.
If your yard still relies on ground stacking or outdated cantilevers, it’s not just inefficient — it’s holding back your growth.
