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Top 5 Tips To Optimize Your Warehouse Storage System

Warehouse Storage System

Do you have a messy, unorganized warehouse?

We know that you are also the victim of the ‘Warehouse Disease’, i.e. even after regularly organizing your warehouse, it turns messy the minute you receive or ship some cargos. Optimising your warehouse storage system to ensure that it stays organized at all times of the month will be a dream come true, right? Now it is possible.

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Optimize Now

There are many ways to optimize your warehouse storage system, such as:

1. Use Automatic Data Collection and Cargo Handling

Manual handling of cargo can result in uncertain outcomes because of either the inexperience of the staff or some human mistake (tripping over cargo, forgetting where a particular product is stacked, etcetera), but it is not the case with automation. If data collection is automated, the possibility of everything going haywire is minimized, and same is the case with cargo handling. It ensures that the cargos are stacked in the right place, and everything is fed into the computer correctly.

2. Use Bin Locators in Your Warehouse Storage System

You cannot merely keep different types of cargo anywhere in the warehouse, and then expect your staff to find it whenever needed. To organize your warehouse efficiently, you can bin locate your cargos. It refers to a designated inventory storage location system, where you mark all the rows, columns and racks. When you keep a particular product in one of these locations, the specific row, column and rack become the bin number for that type of product. The format of the bin number is entirely your decision.

Your staff needs to understand the bin locator concept, and accordingly organize your warehouse. If all the cargos are stacked as per their bin numbers, and all this information is fed into a digital portal, any new employee can find any product that you want in your warehouse. It also reduces the number of steps that your employee needs to take to find the product, going through all the ones stacked at the top; reducing wastage of time and futile efforts.

3. Track Your Assets

Do you know which products sell quickly and which stays stuck for months? Every business owner can forecast the demand and supply of their products to some extent, and accordingly, place an order to their manufacturer. Forecasting will help you to avoid ordering (in surplus) the items that do not sell quickly and encourage you to order (in surplus) the items that sell quickly. It is an efficient method to reduce your overall costs and better utilize your warehouse storage space.

4. Conduct ABC Analysis

It is a simple analysis, also known as Inventory Categorization Method, which categorizes all the products as per their monetary value (high to low). People don’t value their stock equally, but this allows them to know which products are making them the most money, and they can accordingly focus their time and resources towards such products.

‘A-list’ carries the information of the priority stock, items which bring in the most revenue. These items might be a little too expensive for you to order in bulk, and might be so sought after that you need to keep them in ‘lock and key’. It requires higher frequencies of reviewing and re-ordering, so that you always have an adequate supply of these products.

‘C-list’ items have lower monetary values, but are always ordered in bulk.

‘B-list’ items sit right in the middle of the two, with average volume, value, re-orders and frequencies of reviews.

You can store them as per their movements and keep your warehouse organized at all times.

5. Utilise All Available Space

Warehouse storage space is limited, so it is essential to utilize every inch of open space to your benefit. Racks need to be designed to utilize the vertical as well as the horizontal space available in the warehouse. People often assume that space is finished, and they need to shift to larger premises, but what they do not realize is the unused potential that they have. Stacking cargos randomly take up a lot of unnecessary space, which not only prevents you from storing more cargos, but also makes it difficult for your staff to accomplish their jobs quickly and efficiently.

Maximum utilization of your warehouse storage space is only possible if you design it as per the orders you receive and ship, every month, i.e. the products that are moved more often than others, number of employees working in the warehouse and number of racks required to load the cargos etcetera. Even if you have a rough estimate of these components, you can utilize your warehouse storage space more efficiently.

Organize Now

Keeping your warehouse adequately organized and managed will help you lower your costs and improve your efficiency significantly. It is more of an investment that generates higher revenues than a high cost to your business.

Think wise! Be wise! Organise now!

Bill Dunn

Bill Dunn

Director at SHS Handling Solutions
Director of SHS Handling Solutions, Bill Dunn, has been working in the handling industry for over 20 years.
Bill Dunn
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