A method, computer program product, and computing system for receiving a plurality of physical layer blocks (PLBs). A subset of PLBs may be selected from the plurality of PLBs for combining into a combined PLB based upon, at least in part, a utilization of each PLB of the plurality of PLBs, an average compression per active virtual, and a number of free PLBs generated when combining into the combined PLB. One or more PLBs of the subset of PLBs may be compressed based upon, at least in part, the average compression per active virtual. The one or more PLBs of the subset of PLBs may be combined into the combined PLB.