Warehouse Racking 101: Choosing the Right Pallet Racking System for Your Inventory, Space & Budget

Whether you're launching a new warehouse or stepping into a new role in operations, choosing the right pallet rack system can feel overwhelming. There's no one-size-fits-all solution, but that's a good thing. With the right setup, you can improve workflow, maximize space, and protect your investment long term. We can help you Choose a Pallet Racking System

First, Know Your Flow: FIFO vs. LIFO 

Before we even get into rack types, think about how your inventory moves. 

• FIFO (First In, First Out) is best when product freshness matters (like food or pharma). 

• LIFO (Last In, First Out) works better for bulk storage and high turn items. 

Your inventory flow helps determine if you need access to every pallet at all times or if you can store deep and rotate stock in batches. 

Know Your Space: Height, Aisles & Layout 

If your building has tall ceilings, do not waste that vertical real estate. Selective racks or push back systems can help you go up, not out. 

Short on square footage? Drive-in or pallet flow racking may let you store more pallets in less space, but they require a different workflow and forklift access. 

We can help sketch out what fits best in your space even if you're just starting with a rough drawing. 

Pallet Rack Types: Comparison Chart

Let's break down the most common types of pallet rack systems and how to pick the best one for your needs. 

Rack Type	Best For	Inventory Flow	Key Advantages	Considerations
Selective	Easy access to all SKUs	FIFO or LIFO	Most flexible; cost effective	Lower storage density
Drive-In	Bulk storage of same items	LIFO	High density; saves floor space	Limited selectivity; careful driving
Push-Back	Medium turnover items with some access needed	LIFO	Denser than selective; easy to load	Not ideal for FIFO needs
Pallet Flow	High turnover, date sensitive products	FIFO	Automatic stock rotation; very efficient	Higher cost; more complex install
Cantilever	Long or awkward items (pipes, lumber)	N/A	Ideal for non-palletized, oversized loads	Not used for pallet storage

Budget vs. Long-Term ROI 

It's tempting to go with the cheapest option, especially when margins are tight. In our experience, some rack systems make up for higher upfront costs by improving efficiency and reducing damage over time. Not to mention the cost savings of reinstalling a new system when your operation expands. 

Think of it as an investment in your warehouse's daily performance. Our goal is always to balance cost with scalability. We help clients determine layouts that are cost efficient but will still grow with you. 

Do not Overlook Safety & Code 

Some cities require seismic calculations. Others enforce strict fire codes and aisle spacing. The type of rack you choose might need to meet specific design standards, especially if you're pulling a permit. 

We help clients navigate these code requirements, so you're not caught off guard after installation. 

Futureproofing: Installation & Scalability 

Is your business growing?

Some systems, like selective racking, are super easy to reconfigure or expand as your inventory changes. Others are more fixed. The key is thinking ahead now, so you're not boxed in later. 

Real World Example: Custom Rack Design for a Small Parts Supplier 

One client; a small parts supplier, came to us with a growing inventory, limited space, and no formal warehouse plan. They provided us with the number and dimensions of their sku’s, their pick volumes, and dimensions of their workstations. Their current selective rack setup just wasn't keeping up. 

With 8800 sku’s  and only 86,000 sq ft and to work with and a target of 3600 pallet positions, we helped them design a blended system: 

Selective racking formed the core, giving them flexibility and easy access. 

We added hand pick shelving near work areas to make small order picking faster and more ergonomic. 

A custom SpeedCell setup created a dense storage zone for slow-moving SKUs saving aisle space and making full use of the building's height. 

They also had to work around fixed power and data drops non-negotiable obstacles. So, we optimized the design to fit the space they had, installed full height racking, and left room to grow by planning extra beam levels down the road. 

The result? A scalable, efficient, and code compliant system that met their goals, stayed under budget, and left room for future growth. 

Need Help Deciding? We'll help you Choose the Right Pallet Racking System

We get it, this stuff can be technical. That's why we've created this simple comparison chart to walk you through the pros and cons of each system.  

Conveyor

Cantilever

Selective Rack

Shelving

Carton Flow

Large Inventory

Not sure where to start? Schedule a free layout consultation with our team. Our team’s here to help you pick the rack system that actually works for your business, not just what’s trendy or expensive.