How to Optimize the Warehouse Storage Process

Warehouse optimization is a crucial component you need to consider for various reasons. When done well, it can save your company from delays and other costly mistakes that can negatively impact your organization’s credibility.

Most organizations quickly break down when they fail to optimize warehouses. Fortunately, there are several ways you can optimize the warehouse storage process to improve efficiency and the overall productivity of your organization.

Calculate the Warehouse Storage

There are so many activities within a warehouse. Workers get so busy with various tasks such as product packing, labeling, and movement. You can make work easier for them by using warehouse management software to calculate your warehouse utilization.

When you do this, you will manage all tasks from a central platform and keep a close eye on stock levels. The software also enables you to track the movement of inventory from the warehouse to avoid unnecessary overhead.

Measure Your KPIs

Since the warehouse contains many activities, you need to measure your key performance indicators and find ways to improve your warehouse storage system. For instance, you need to analyze the inventory carrying costs, such as service costs, capital costs, damage costs and storage costs. Also, check your storage productivity to know each inventory’s volume per square foot.

Space utilization is also another factor to consider when measuring your KPIs. This will help you identify the total space occupied by the inventory against the warehouse overall storage capacity.

Checking your inventory turnover will help you to know the frequency at which inventory passes through your warehouse. In this case, you will track and know the quality of items to be replaced within a specific time.

Conduct ABC Analysis

Using the Inventory Categorization Method will help you to categorize your products according to their monetary value. It is crucial to understand what products are doing well and generating more money for the business.

Once you identify them, you can focus your time, effort, and resources on such inventory. The first-moving products require a higher review frequency while also keeping on toes with the re-ordering and re-stocking of your warehouse.

When using this method, you will have an adequate supply of such products and avoid disappointing your customers. You can store your products according to their movements to help you keep the warehouse organized.

Utilize Every Available Space

Most warehouses have minimal space. So, you need to utilize every available space to make the most out of your warehouse. Although it can be tough to change some storage or the entire warehouse layout, it can help you minimize open spaces and improve your storage.

Sometimes, you might think that you no longer have enough space in your warehouse and start thinking of acquiring a new location for your business. The truth is that there is more space than you can ever imagine if you choose to maximize every open space.

For best results, re-design the vertical and horizontal space to create more space. You need to get a little more creative with an open mind to locate free spaces that you can utilize. Avoid stacking cargo in the warehouse since it can take up a lot of space that you could use to store more items. It also makes work hard for your employees, making them unable to accomplish their duties on time.

Choose the Appropriate Warehouse Storage System

There are various storage systems today that you can invest in. However, it’d be best to choose the right storage system that can help you maximize space and improve efficiency within your warehouse.

Before choosing a storage system for your inventory, consider particular factors such as the facility size, types of products, and warehouse management style.

Some of the widely used systems are pallet-flow racking, floor or block staking, raised storage flooring, and push-back racking. Analyze your storage needs before investing in the appropriate storage system.

The Bottom Line

Warehouse optimization plays a crucial role in the overall success of your operations. Using the tips above can help you make the most of every available space and increase efficiency in the warehouse. It may sound time-consuming but it is worth every effort made.