Optimise Your Warehouse Storage System

Is your warehouse operating as well as it could be? Stock location methodology is discussed at length in the second edition of “The Warehouse Management Handbook”. Stock location assignment is a process for determining the precise locations of products stored in the warehouse for maximum efficiency. The methodology takes into account various factors related to warehouse storage. It’s well worth reading for new entrepreneurs who want to develop a strategy for storing their products and increasing the efficiency of their operations.

Warehouse Storage Systems

Developing a warehouse storage system is the process of managing products for picking and storing products under the right conditions in the warehouse. It takes into account various factors such as product quantity, product type, product characteristics, and product picking frequency. It also maximises the convenience of picking products and maintaining product safety, which is important to businesses of all sizes. Developing a warehouse storage system tailored to your business and your products is an efficient way to store your products and helps your inventory to be more flexible.

Benefits of Warehouse Storage

A well-designed warehouse storage system should maximise several factors of your business operations. It should:

Increase efficiency in storing and managing products
Prevent loss or damage to products
Reduce transportation costs
Increase efficiency in the production and distribution of products
Increase business competitiveness

6 Key Strategies for Storing Products in Warehouses

In the “Warehouse Management Handbook: Volume 2”, six strategies were discussed as being key for increasing the efficiency and productivity of your warehouse. You should develop a system that uses these strategies and techniques to create a fluid warehouse storage system that serves the needs of your own business. The strategies include:

Fixed Location Storage

Fixed-location storage is for products that fit certain criteria. These might be the most picked item, the largest-sized product, or the most valuable products in your warehouse. The fixed location is multi-purpose and used for replenishment, storage, and picking.

Non-Fixed Location Storage

Also known as a random storage strategy, this strategy is often used for special “limited-time” promotional items, large, cumbersome items, or seasonal items. It uses whatever spots are available in the warehouse. Computerised picking lists and item number storage systems expanded the use of non-fixed locations, which guide pickers to the item’s correct location.

Informal Storage

Informal storage can be a place to store returned items until they can be restocked, damaged items awaiting insurance claims, or any items outside of regular business operations.

Item Number Storage

Item number storage systems revolutionised warehousing in the late 20th century when product ordering, filling, and billing became computerised. It enabled fine adjustments to the order in which products were picked in the warehouse and caused the reorganisation of many warehouses. For example, heavy items could be located at the beginning of an order. When the picker filled the order off of a computerised picking list and stacked the items on a pallet, the heaviest items would automatically be at the bottom of the pallet, reducing damage to the lighter items picked later. As sales data was combined with warehousing logistics via item numbers, the most high-volume, popular items could be located close to the loading docks of the warehouse, which cut down on warehouse traffic and time spent replenishing the products.

Classified storage may also known as bonded warehousing. This is where a warehouse carries products that are regulated by the government and require a higher level of security and insurance than normal. Warehouses that deal in pharmaceuticals, liquor, or tobacco items are examples of bonded warehouses.

Combination System

Warehouses dealing with just one item are extremely rare these days. Many companies offer a range of different varieties and sizes of products sold by the piece as well as by the case. This means that warehouses also have to stock the items to be picked in those quantities and sizes. You often find combination racking systems in warehouse storage systems where items can be picked individually from flow racks, and in case lots from multi-tiered pallet racks.

Contact Tellus in Thailand

Tellus is a designer, manufacturer and distributor of quality pallet racking systems and a wide range of warehouse and office storage systems in Thailand. We also provide excellent after-sales service. Partner with Tellus to help maintain the efficiency of your warehouse operations as your company grows and expands. Contact us today.