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4 BEST STRATEGIES and 12 PRINCIPLES TO OPTIMIZE WAREHOUSE STORAGE SPACING in 2020

  • 2020/05/13
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 The products variety and differentiation are big issues for warehouse operator. Properly warehouse storage for your warehouse is important to ensure smooth daily operation for your warehouse. Today, i would like to share 4...


 The products variety and differentiation are big issues for warehouse operator. Properly warehouse storage for your warehouse is important to ensure smooth daily operation for your warehouse. Today, i would like to share 4 best strategies and principles to place your cargo for your warehouse that can help you to save your money and enhance your warehouse. Moreover, finding the right warehouse for optimize your business. 

FIXED-LOCATION WAREHOUSE STORAGE STRATEGY

Fixed-location warehouse storage strategy is a strategy of storage that places a kind of products in a specific and pre-determined location in warehouse. The specific products must be spaced in assigned place even though there is available space somewher else.

Advantages of Fixed-location warehouse storage strategy

1.Items are easier to find. Products are pre-determined and assigned. 

2. Suitable for Items have to storage separately duo to the physical features e.g. chemicals materials, medicine

3. Items location can be determined by turnover rate and outbound frequency. Reduce the outbound time.

 

Disadvantages of Fixed-location warehouse storage strategy

1.Easier to waste space. Goods must be spaced in assigned space even though these is space somewher else

2.Require larger warehouse space overall and warehouse storage rental cost 

RANDOM WAREHOUSE STORAGE STRATEGY

Random warehouse storage strategy is a strategy that places goods in random location in warehouse. Items are not assigned to a specific place and the location can be often changed depend on operators’ preference and warehouse situation.

Advantages of Random warehouse storage strategy

1.More convenient for warehouse storage operator; operators can assign

2.Take advantage of warehouse spacing 

Disadvantage of Random warehouse storage strategy

1.More difficult for inventory checking; Items are randomly placed in warehouse

2.Potential risk of danger and damage for items that negatively affected each other if placed nearby.

3.Probably increasing pick-travel distance and time cost if high turnover items are placed far from entrance.

CATEGORY LOCATION WAREHOUSE STORAGE STRATEGY

Category location storage strategy, as known as ABC storage strategy, is a strategy that places items based on their categories, products nature or rate of turnover. Warehouse operator usually divide items by the fluidity and turnover level. Fast moving items are placed near warehouse entrance and places that are easy to pick; In the other hand, slow moving products are placed in the warehouse backend. This strategy can increase the efficiency of warehouse which are storing products having different sales performance e.g. seasonal sales boast

Products.

Advantages of category location warehouse storage strategy

1.Convenient for Hero products or Cash Cow items which have good turnover rate.

2.Warehouse operators are easier for inventory checking, daily inbound/outbound, warehouse storage management

3.Reduce the pick-travel distance, time cost and increase the efficiency of warehouse storage operation

 

Disadvantage of category location warehouse storage strategy

1.Require larger warehouse and high warehouse cost in long term; small scale warehouse is hardly run by this strategy because of space limitation.

2.Frequent warehouse analysis is required; items turnover rate is different in different season and period all the year round. If the change of products’ demand is big and frequent, items should be re-categorized frequently.

CATEGORIZED RANDOM LOCATION WAREHOUSE STORAGE STRATEGY

Categorized random location strategy is a strategy that places items in the assigned area based on the categories. However, items are randomly placed within that assigned area. 

Advantages of categorized random location strategy

1.  Take the advantage of category location strategy. In the same time, increasing the efficiency of warehouse usage.

Disadvantages of categorized random location strategy

1. Higher difficulty for outbound and inventory management and stock keeping

12 PRINCIPELS TO ConSIDER FOR WAREHOUSE STORAGE STRATEGY

Please consider following factors in order to optimize the operation efficiency

(1)INVENTORY TURNOVER RATE

The higher the turnover rate, the closer to the entrance or the easier to reach 

(2)CORRECTION

Considering this factor in ordering to reduce pick-travel distance and operators’ workload for items are corrected  

(3)CATEGORIZATION

Placing items into same area with same category for easier pick and inventory keeping.

(4)SIMILARITY

Placing items that are similar for better management

(5)COMPLEMENTARITY

Items can be compensated if items’ shortage occurred

(6)COMPATIBILITY

Pease conform that items nearby are compatible each other to prevent products damage or danger occurred e.g. cigarette, soap, flammable items

(7)FIRST IN FIRST OUT

Suitable for items that are short products life cycle or expiration length e.g. grocery, food etc.

(8)BLOCK STACKING

Stacking up for taking advantage of warehouse vertical space

(9)INVENTORY TAGGING

Making sure items are tagged and visible clearly for warehouse storage operators. 

(10) ITEMS DIMENSIONS

Considering dimensions and shape similarity in order to fulfill requirement likes pallet size etc.; Maximizing efficiency and minimizing waste of space 

(11) WEIGHT AND GRAVITY

This is for safety reason. General speaking, the heavier the items, the lower or the closer to the floor; the lighter the items, the higher it should be placed. If it is for manual lifting, heavy-load items should be place

(12) SPECIFICITY

Physical stat, seasonal factors etc.

 


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