One of the most inspirational thoughts on organization is definitely the following one: “Organizing is a journey, not a destination.” While most of us can only think about the end goal, the whole organization process involves different, equally important aspects that can “bring joy” to any warehouse inventory. 

As the prices of industrial real estate can get quite high, it’s crucial to use every square foot of your space so that your investments can yield maximum returns. But what is the best philosophy to have in mind when organizing warehouse inventory? What are the biggest pain points and most common mistakes seen in warehouses around the world? And what does an “organized warehouse” even look like, and how do you create one? 

Some of the solutions are easy fixes, while others involve a more strategic approach. Let’s take a look at the most efficient tips and ideas.

Why Should You Care About Warehouse Organization?

Before we delve into warehouse storage ideas, it is important to understand why organization matters. First of all, a clean, clutter-free warehouse is an effective warehouse. It is a location where all inventory is stored in its appropriate area and can be quickly retrieved. You want a floor that makes getting around quick and easy, with plenty of room to move through. 

Your warehouse needs the same level of organization as your front store. No longer does the fact that anything happens in the background serve as an excuse for a lack of order. It's an integral aspect of your business and deserves the same care as your physical shop front.

Effective Inventory Organization Ideas

Rethink the Design Of Your Space

The layout of the storage facility is the primary factor and the root cause of many disorganized setups. Your facility will only function as well as it can if it’s consistent and neat all the time.

Businesses can face different problems with layout design. That’s why you should ask yourself these questions to tackle the most common layout design pain points:

• Are all of your workflows productive? Make sure you set aside enough room for various stages of production and different workflows. If two (or more) different systems collide with each other, that can only be a recipe for chaos. 

• Do you have any unused storage capacity? All nooks and crannies should be strategically used - with unutilized gaps in the storage facility, you're passing up on the chance to store more items.

• Are all of your goods accessible? Think about whether your operators should be able to access the goods directly. Different types of racks make it easier to get to pallets in different ways. Because of this, it's important to make sure you've chosen the right solution.

Your mission is to ensure the smooth flow of people and products through each station. This can be done by spotting potential bottlenecks and dividing them up where necessary to prevent accidents.

Proper Labelling

No matter if you work with permanent or seasonal hires, it will always be easier for them to find the exact products they need if they are labeled correctly. Not only does this save time during the order-picking process, but it also helps avoid any potential frustrations.

Labeling and/or barcoding also make it simpler to track down specific items in storage. You have a clear idea of what you need and where to get it. 

The most commonly used storage labels are the GS1-128 barcodes, which include:

• Characters (both numeric and alphabetic) that describe the product’s characteristics;
• Manufacturing date;
• Batch number;
• Expiration date. 

Divide Products Into Categories

A great way to organize your space is by learning to sort your stock into appropriate bins or racks. Make sure each container has its own bin number and resembles a different product category. 

For example, you can divide items by color, type, shape, size, or any other specific characteristic the products you sell have. Grouping together items that are similar or are often ordered together can cut down on picking times and mistakes. 

Every once in a while, you should go through and clean your racks and bins, putting everything back where it belongs. Additionally, this process will allow you to accurately assess how many of each product are still available in each rack, which will come in handy when it comes time to restock. 

Tips for Increasing Warehouse Efficiency

Inventory Analysis

The ABC analysis is a very important tool for sorting and prioritizing warehouse inventory. Products with the highest "A" grades have the highest turnover and consumption rates. Products with a "B" grade have a moderate turnover, while those with a "C" grade have a low volume of sales. Products in Category A should be kept near the loading docks, while products in Category C should be kept further away.

Another way to analyze your inventory is with the FIFO and LIFO systems. With FIFO (first in, first out), the oldest products are the ones that leave the warehouse first, while with LIFO (last in, first out), the freshest ones are the first ones going out. 

Whichever system you choose, you will more easily cut down storage costs, reduce waste, improve inventory turnover, and avoid any potential stockouts.

Maximizing Vertical Space

If you only think horizontally, you won't be able to use every available inch of your storage space. Luckily, there are many different vertical storage systems to choose from, such as:

• Tall shelving units. Lots of industrial storage spaces come with high ceilings, which is where tall shelving units shine. Utilizing them, it is possible to reach new heights, providing additional storage.

• Mezzanines. Installed above the warehouse floor, these raised platforms come with usable space for supplies, spare parts, equipment, paperwork, and even offices.

• Automated storage and retrieval systems (AS/RS). By utilizing robotic systems to store and retrieve items, these storage solutions can help you make the most of your vertical space and minimize the need for manual labor. 

The placement and removal of goods from the racks can be sped up with the aid of these systems. The system itself ensures that the pick stations and loading docks are stocked with ready-to-ship items and maximizes storage space.

• Pallet racking systems. These systems allow you to make better use of the vertical space in your warehouse by stacking pallets of products on top of each other.

Employing a WMS

A software program called a warehouse management system, or WMS for short, assists businesses in managing their warehouse operations more successfully.

Why use one?

• Easily monitor your inventory levels: You can keep track of the quantity of inventory you have in your warehouse, where it is, and when it was received or sent out using a WMS.
• It makes order management simpler: A WMS can make order management simpler by informing you of the items that require picking and packing as well as the deadlines for those tasks.
• It decreases errors: A WMS can help lower the risk of errors and increase the precision of your inventory counts by automating some of the management of your warehouse processes.

• It’s a time saving tool: You can manage your warehouse operations more effectively with a WMS, which can help you get things done faster and with less manual labor. 

Of course, such a system is as perfect as you make it. It is based upon the data it receives, so it’s crucial to keep it updated and make it grow with your business. But if you decide to employ one, you'll need to train your employees how to use it. 

Employee Education

Your company's goals and culture should be at the forefront of your employees' minds. By aligning their efforts with the company's objectives, they can work towards a shared vision with greater motivation and clarity.

For your warehouse operations to run as smoothly as possible, it's important that your staff is familiar with the procedures that are unique to your company. Regular training can give them the skills they need to manage inventory, keep equipment in good shape, and keep your warehouse clean and running smoothly.

Especially if you decide on implementing a WMS, this kind of technology can be a completely new world to some people. It's essential to offer thorough training that is customized to the needs and learning preferences of every team member. Getting team members involved in making the new system and putting it into place can also help get their support and buy-in. 

Treat Your Workplace as a Home

The warehouse may not be a home of yours or your team members, but it’s the home of your products. Therefore, it should be treated with the same respect and cleanliness as you would treat your own home. 

Regular and simple maintenance activities will keep your stations and entrances free of any obstacles. This will keep products moving in an environment that is neat and streamlined. 

Cleaning the warehouse for an hour or two each week, or even once a month, can dramatically increase your productivity. You never know what lost or mistaken orders you might come across. Additionally, a tidy warehouse allows staff to move about more quickly and complete tasks with more ease.

Conclusion

No, it’s not only about the visual appeal. Nor is it only about hygiene. An organized warehouse inventory can do amazing things for your business, like:

• Enhance productivity;
• Boost morale;
• Increase order accuracy;
• Let you track your inventory more easily. 

So, what are you waiting for? Just remember that not all of these suggestions are appropriate for every warehouse; implement only those that seem most applicable to your own. 

It's time to put a few to the test and begin making the most of your storage facility!