Managing warehouse space efficiently is one of the biggest challenges for factories and logistics companies in Malaysia. Rising rental costs, limited land availability, and higher throughput demands are pushing businesses to rethink how they utilize their storage areas. A well-designed pallet racking system has become one of the most effective solutions to maximize vertical space, improve inventory organization, and increase operational productivity.

In this guide, we explore everything you need to know about pallet racking systems—from definitions and types to safety standards, benefits, selection criteria, and automation readiness.

What Is a Pallet Racking System?

A pallet racking system is a warehouse storage structure designed to store palletized goods in multiple vertical levels. It allows forklifts or automated systems to access pallets efficiently while optimizing floor space. Standard racking consists of frames, beams, braces, and safety components, all engineered to support heavy loads and maintain safe warehouse operations. For Malaysian factories, pallet racking systems are widely used across manufacturing, FMCG, electronics, and cold storage environments.

What Is a Pallet Racking System?

Why Do Factories Need a Pallet Racking System?

As commercial warehouse rental rates in Malaysia range from RM 1.30 – RM 2.60 per sq ft, businesses are under pressure to maximize every square meter of warehouse space. Implementing a pallet racking system helps factories:

• Increase storage capacity by up to 300%
• Improve inventory visibility and picking efficiency
• Reduce forklift travel distance and workplace clutter
• Support future integration with automation such as ASRS
• Lower long-term operational costs through optimized layout flow

What Types of Pallet Racking Systems

Below are the most common racking systems used in Malaysian warehouses. Each comes with unique strengths depending on SKU variety, warehouse space, and handling equipment.

5 Most Common Types of Pallet Racking Systems

Selective Pallet Racking

Selective pallet racking provides direct access to every pallet, making it suitable for warehouses with many different SKUs. It is easy to install, cost-effective, and adaptable to most forklift types, making it the most popular option in Malaysia.

Double-Deep Pallet Racking

This system stores pallets two positions deep, offering higher storage density compared to selective racking. It requires deep-reach forklifts but helps reduce aisle space, making it ideal for medium-SKU operations seeking more capacity.

Drive-In / Drive-Through Racking

Drive-in racking is designed for high-density storage using a Last-In, First-Out (LIFO) flow. It is commonly used in cold storage and bulk manufacturing environments where multiple pallets of the same SKU are stored together.

Pallet Flow / Gravity Racking

Pallet flow racking uses roller tracks to move pallets automatically using gravity. It supports FIFO operations and is suitable for industries handling expiry-sensitive inventory such as food and pharmaceuticals.

Cantilever Racking

Cantilever racking is specifically engineered for long, oversized, or irregularly shaped goods such as pipes, timber, and metal profiles. It provides unobstructed access and excellent stability for non-palletized loads.

Pallet Racking Safety Standards 

Follows specific engineering and safety regulations for pallet racking systems, ensuring they meet structural integrity requirements and protect both workers and inventory. Adhering to these standards helps prevent collapse, beam deflection, and forklift-related accidents.

• Compliance with Malaysian Standards (MS 1025, MS 1553)” These standards ensure the racking structure is designed using proper load calculations. They also outline safe installation and inspection requirements to maintain long-term structural performance.
• Strict load capacity labeling: Clear signage prevents accidental overloading by warehouse operators. It also helps ensure consistent training and compliance for newly onboarded staff.
• Routine inspection and maintenance: Regular inspection helps detect wear, corrosion, or damages caused by forklifts early. Timely repairs prevent it from escalating into major safety hazards.
• Use of proper safety accessories: Components such as anti-collapse mesh and column guards add extra protection for high-traffic areas. These accessories help minimize risk even when operator errors occur.
• Forklift operator training: A trained operator reduces collisions with racks, which is one of the most common causes of structural failure. Training also improves handling speed and warehouse efficiency.

How to Choose the Right Pallet Racking System

 Each warehouse has different storage needs depending on the number of SKUs, load weight, handling equipment, and available floor space. These factors play a crucial role in determining which pallet racking system provides the best performance and ROI.

• Warehouse height and footprint: If your warehouse has high ceilings, a selective or VNA system maximizes vertical storage. Smaller spaces may require double-deep or drive-in racking to increase density.
• SKU variety and picking frequency: High SKU variety benefits from selective racking to ensure fast access. Low SKU variety works best with drive-in systems to maximize space efficiency.
• Pallet weight and product dimensions: Heavy loads require hot-rolled steel frames and reinforced beams. Checking pallet size is also important, especially since Malaysia frequently uses 1100 × 1100 mm pallets.
• Forklift type or handling equipment: The choice of forklift determines aisle width and racking configuration. For example, reach trucks allow for higher racks while counterbalance forklifts require wider aisles.
• Future automation or expansion plans: Racking designed with automation compatibility helps avoid costly retrofits later. Modular designs also make it easier to adjust racking layouts as the business grows.
• Budget and installation timeline: Cost should be evaluated based on cost-per-pallet-position rather than per component. Installation time also affects operational downtime and should be considered.

Choosing the right pallet racking system help the operational efficiency, labor safety

Warehouse Considerations for Malaysian Factories

Industrial environment presents unique challenges, from high humidity to varying warehouse sizes and forklift maneuverability constraints. Considering these factors ensures the racking system performs safely and efficiently over its lifespan.

• Humidity and corrosion exposure: Malaysia’s tropical climate increases the risk of rust and corrosion, especially for uncoated steel racks. Galvanized or powder-coated finishes are recommended for long-term durability.
• Floor loading capacity: Not all warehouse floors can support heavy, high-rise racking systems. Conducting a load-bearing assessment helps prevent structural damage and ensures compliance with safety standards.
• Forklift traffic patterns: Aisle layout must accommodate safe and efficient forklift movement. Poor layout planning leads to collisions, damaged racks, and reduced productivity.
• Lighting and operator visibility: Proper lighting ensures operators can clearly see rack beams and pallet positions. This reduces handling errors and improves safety during peak operational hours.
• Temperature-controlled environments: Cold rooms require materials that can withstand low temperatures. Specialized racking ensures structural stability during thermal expansion and contraction.

How to Integration With Automation (ASRS, Conveyors, AMRs)

Automation technologies such as ASRS, conveyors, and autonomous mobile robots require racking systems that meet precise engineering standards. The racking must be aligned with load-handling designs and support seamless material flow across automated equipment.

• Structural reinforcement for ASRS load handling: ASRS cranes operate with high speed and precision, requiring racks to maintain minimal deflection. Reinforced beams and uprights are essential for long-term stability.
• Precise pallet positions for automated guidance: Automation requires consistent pallet alignment for sensors and robotic arms. Poorly positioned pallets can trigger operational errors or system shutdowns.
• Integration with conveyor entry/exit points: Racking must align with conveyor interfaces to support smooth pallet transfers. Incorrect heights or misalignment can disrupt material flow and increase downtime.
• Safe interaction with AMRs or AGVs: Robots navigate aisles based on fixed pathways that must be free from overhanging pallets. Proper rack design ensures safe clearance and uninterrupted robot movement.
• Future scalability for full automation upgrade: Businesses often begin with partial automation before scaling further. Choosing compatible racking early reduces conversion costs and avoids structural redesign.

How to Choose a Reliable Pallet Racking System Provider 

Choosing the right pallet racking partner is essential for ensuring safety, efficiency, and long-term warehouse performance. For many Malaysian factories, DNC Automation stands out as a trusted provider offering end-to-end industrial storage and automation solutions.

• Proven Engineering Expertise: provides professionally engineered racking designs that follow Malaysian Standards for structural safety. Their team ensures every solution matches your warehouse load, layout, and operational requirements.
• Integration With Automation Systems: Unlike typical racking suppliers, DNC specializes in ASRS, conveyors, and robotic integration. This ensures your racking system is future-ready and compatible with Industry 4.0 upgrades.
• High-Quality Materials and Durability: All racking components are produced using high-strength steel with proper coatings suitable for Malaysia’s humid environment. This results in long-lasting performance and reduced maintenance costs.
• Custom Layout Design and Site Assessment: DNC conducts full warehouse studies, load analysis, and traffic evaluation before installation. This ensures maximum storage capacity and smoother material flow.
• Reliable After-Sales Support: The company provides ongoing maintenance, inspection, and safety audits to keep your racking system in peak condition. Their responsive support team helps minimize downtime and operational risks.