How to Organise Warehouse Inventory Correctly

How to Organise Your Warehouse Inventory For Maximum Efficiency

Written by David Rose

For any business that stocks inventory, organising the warehouse is crucial for efficiency. Proper warehouse organisation improves order fulfilment, inventory tracking, space utilisation and more, so getting it correct is fundamental for a successful operation.

As award winners in warehouse storage and innovation, we have put together this guide, covering key tactics and systems for proper inventory control, including:

• Benefits of An Organised Warehouse
• Critical Steps for Organising Inventory
• Warehouse Zoning and Layout
• Inventory Tracking Methods
• Utilising Warehouse Management Software
• Inventory Turnover Optimisation
• Maintaining Organisation Over Time
• Storage Solutions for Efficient Space Usage
• Warehouse Cleanliness
• Tactics to Improve Warehouse Workflow
• Effective Inventory Auditing Approaches
• Training Staff on Organisational Protocols

Follow along for expert, actionable tips on establishing an efficient and organised warehouse operation.

Why Organise Your Warehouse Inventory?

When we delve into warehouse operations, we find that organising your warehouse inventory is not just an optional task, it’s vital. Warehouse organisation streamlines the entire inventory process and amplifies your warehouse’s efficiency. The repercussions of a disorganised warehouse are far-reaching. So, what benefits does this organisation bring?

Improves picking and shipping times

Within an organised warehouse, order fulfilment is like a well-oiled machine. This efficiency ensures swift shipping times, keeping clients satisfied and enhancing warehouse logistics.

Increases inventory accuracy

Imagine the nightmare of inaccurate inventory sheets. Now, banish it. With each item given a dedicated storage spot, physical inventory counts become far more accurate, reducing discrepancies.

Maximises space

Efficient warehouse design, which integrates both vertical and horizontal capacity, is the hallmark of a modern, efficient warehouse. Using the space wisely can even delay expensive relocations or expansions.

Reduces losses

Misplacement can be a significant drain on resources. An organised warehouse drastically minimises such errors, saving money and reputation.

Boosts productivity

Time is money. Warehouse staff can significantly reduce time spent searching for items in a well-organised space.

Lowers costs

Think of all the savings: less damaged or lost goods, fewer hours wasted, and efficient use of warehouse space, all combining to a substantial reduction in overheads.

In essence, investing effort into organising your warehouse inventory isn’t just about cleanliness; it’s about efficacy, accuracy, and, ultimately, profitability. Our PIX units are perfect for fast, simple storage that can flex around your inventory. Check it out below.

How to Organise Your Warehouse Inventory in Key Steps

Stepping into warehouse inventory management might feel daunting. Yet, by simplifying the process into manageable phases, we can unlock the secrets to an optimally functioning warehouse:

1. Classify inventory – Not all stock on hand is created equal. Distinguish SKUs based on factors such as sales velocity, size, weight, and specific needs, such as temperature sensitivity.
2. Design layout – Crafting an efficient warehouse layout is not about just aesthetics; it’s about flow. Create inventory zones that harmonise with your warehouse’s natural flow, and map out locations keeping SKU classifications and common order fulfilment workflows in mind.
3. Install storage – Integrating racks, shelves, and bins isn’t just about increasing storage space. It’s about creating a flow in your warehouse that speeds up processes and keeps inventory numbers exact.
4. Label everything – Your warehouse isn’t a maze. A consistent naming convention, combined with clear signs and visual cues, ensures every warehouse worker can find their way swiftly.
5. Maintain organisation – The art of warehouse organisation is dynamic. Continually audit, adjust, and respond to changes in inventory levels, ensuring the warehouse remains a paragon of efficiency.

Now, let’s delve deeper into each phase, uncovering the nuances of true warehouse efficiency.

How Should You Categorise and Classify Inventory?

In the realm of warehouse organisation ideas, a standout strategy is intelligent SKU categorisation:

• Turnover – Positioning high-demand, fast-moving items close to the shipping area cuts down on unnecessary movements, streamlining the inventory process.
• Size/weight – For the sake of safety and efficiency, bulky or heavy items should be situated near loading zones, ensuring a smooth flow within the warehouse.
• Temperature – Remember, some goods have strict climate requirements. Designate specific climate-controlled zones to ensure product integrity.
• Hazards – Safety first. Any flammable materials, chemicals, or other hazards should be securely isolated in dedicated sections of the warehouse.
• Value – Just like a bank vault, high-value inventory items should be in secure, restricted-access areas.

By focusing on the aforementioned classifications, you optimise the warehouse layout and ensure both products and staff are treated with utmost care.

What Goes into Designing an Effective Warehouse Layout?

Creating an efficient warehouse layout is a blend of science, art, and industry know-how. It’s akin to piecing together a complex puzzle, ensuring each component contributes to the seamless flow and organisation of the space. Let’s delve into the critical facets of designing a layout tailored for your inventory management needs:

• Zones – Think of zones as the neighbourhoods within your warehouse. These are areas where similar or related items come together. Creating logical storage zones or pods means goods are easily located, and related items are close at hand, streamlining the picking process.
• Slots – Slotting is the science and art of organising inventory in a warehouse. Properly sized and oriented racking and shelves are paramount. They not only maximise capacity but ensure that your warehouse workers can easily access and store goods, thus enhancing warehouse inventory management.
• Aisles – Aisles are the highways of your warehouse. They need to be wide enough to allow for the safe and efficient movement of people and machinery, be it forklifts or carts. Moreover, well-planned aisles can prevent accidents and facilitate quicker inventory processes.
• Flow – The flow is all about streamlining the movement within your warehouse. Intuitive picking paths, which minimise unnecessary travel, can significantly reduce fulfilment times, keeping your operations running smoothly.
• Speed – A warehouse’s success often hinges on speed. By placing the fastest-moving items near the shipping areas, you ensure rapid access, which in turn boosts order turnaround.
• Space – As businesses evolve, inventory needs change. Designing with foresight means leaving room for inventory growth and seasonal peaks. It’s not just about the present but preparing for the future, ensuring the warehouse can accommodate ever-changing demands.

Remember, the key is not merely to organise your warehouse but to do it in a manner that it stays organised and efficient over time. Every element of your design should cater to the unique demands of your inventory, storage equipment, order workflow, and personnel.

10 Tips for Improving Warehouse Workflow

The heartbeat of any efficient warehouse is its workflow. The more streamlined and coherent your workflow, the faster and more accurately orders get processed. Let’s embark on a journey to optimise your warehouse operations with these ten golden tips:

1. Analyse data – In the age of information, data is invaluable. Extract insights on high volume SKUs, discern busy periods, and other trends. This analysis becomes the foundation of your workflow design.
2. Eliminate bottlenecks – Imagine your warehouse as a river, and bottlenecks as dams hindering the flow. Addressing these congestion points ensures a steady, uninterrupted flow in your warehouse.
3. Beware blind spots – Security and efficiency go hand in hand. By positioning picking and packing areas where they are easily visible, you deter theft and also enable quicker supervision and correction of errors.
4. Train staff – A warehouse is only as good as its workers. Ensure every member, be it old or new, understands protocols and standard operating procedures. Regularly train warehouse staff on emerging best practices.
5. Minimise travel – Every step saved is time saved. By optimising your warehouse layout and pick paths, you drastically reduce unnecessary movements, streamlining operations.
6. Stage orders – Consistency is key. Use defined staging areas for each shipment, making it easier to consolidate items and reduce mistakes.
7. Ensure alignment – Like a well-rehearsed orchestra, every part of your warehouse should be in sync. This means consistent procedures across all shifts and personnel.
8. Capitalise on technology – Embrace the future. Utilise tools like barcode scanning, voice picking, and warehouse management software to not only speed up but also bring accuracy to order fulfilment.
9. Focus on ergonomics – A happy worker is an efficient worker. Design inventory storage locations with ergonomics in mind, placing items at optimal heights and ensuring comfortable working conditions.
10. Communicate changes – Change is inevitable. However, ensuring that everyone is on board with new processes, layouts, and protocols is paramount. Regular communication fosters a cohesive, informed team.

With these strategies, not only will your warehouse organisation elevate, but you’ll see tangible improvements in order fulfilment times, employee morale, and overall efficiency.

Which Storage Solutions Maximise Warehouse Space Usage?

In the vast expanse of a warehouse, every inch counts. Whether you’re trying to organise your warehouse for a burgeoning inventory or reshuffling for greater efficiency, the right storage solutions are paramount. Let’s delve into the popular and effective storage infrastructures that optimise warehouse space:

Pallet racking

A mainstay in many warehouses, these are often constructed as double-deep rows. Depending on your needs, they offer single or double-sided access and adeptly maximise cubic capacity. Their design caters to vast inventories, facilitating smooth warehouse operations and efficient inventory management.

Shelving

This is the bedrock for smaller items. Whether static or adjustable, shelves offer flexibility and are a cost-effective way to keep your inventory organised. A correctly organised warehouse can tremendously cut down on picking and packing times.

Mezzanines

If you ever looked at your warehouse and wished you could utilise the vertical space, mezzanines are your answer. These multi-level storage platforms amplify your vertical capacity, turning empty air into valuable storage real estate.

Bin shelving

When dealing with myriad small parts, angled bins come into play. They often come with labelled divisions, ensuring that the storage not only saves floor space but also expedites the picking process.

Modular systems

Ideal for specialised items, e-commerce operations and clothing, these units offer customisable drawer sizes. Not only do they help in organising warehouse inventory, but they also safeguard items and make them easily accessible. Explore our range of PIX units for our quick set-up options.

Refrigeration units

A must for perishables, these climate-controlled rooms or freezers ensure inventory longevity. They are pivotal in warehouses that stock perishable goods, ensuring the inventory’s longevity and quality.

When choosing storage solutions, always consider the types of inventory being organised. Align your choices with your inventory’s size, weight, and frequency of access to truly optimise space usage.

The Importance of Warehouse Cleanliness: More Than Just Aesthetics

In the world of warehouse management, there’s a facet that often gets overshadowed by the buzzwords of efficiency and optimisation: cleanliness. However, maintaining a clean warehouse goes beyond mere aesthetics; it plays a pivotal role in ensuring the smooth functioning of the facility and the safety of its workers. Here’s why it’s essential:

1. Safety First: A clean warehouse reduces the risk of accidents. Spills, debris, or misplaced items can easily become hazards, leading to slips, trips, and falls. Regular cleaning and prompt attention to spills ensure that pathways and warehouse aisles remain unobstructed and safe for staff and machinery alike.
2. Inventory Protection: Dust, moisture, and pests can compromise the integrity of stored goods. Maintaining cleanliness ensures that inventory is stored in optimal conditions, reducing the chances of damage or contamination. This is especially crucial if the inventory in a warehouse includes perishables or sensitive items.
3. Enhanced Productivity: An organised and clean workspace facilitates smoother workflows. Workers can find and access items more quickly in a clean environment. Regular cleaning and decluttering can aid in ensuring that every section of the warehouse space is easily navigable.
4. Machinery and Equipment Longevity: Dirt and grime can hinder the performance of machinery and reduce its lifespan. Clean environments ensure that equipment like forklifts, conveyors, and warehouse management software systems function at their best, reducing maintenance costs in the long run.
5. Morale and Professionalism: A clean warehouse is a morale booster. Workers feel more motivated and take more pride in their jobs when they work in a well-maintained environment. Plus, a neat and tidy warehouse gives a professional impression to visitors or potential business partners.
6. Efficient Inventory Management: Believe it or not, cleanliness plays a part in inventory management too. A clean warehouse minimises errors in stock counts, reduces misplaced items, and ensures that inventory processes, from receiving to dispatch, occur without a hitch.
7. Environmental Responsibility: Regular cleaning can also be a step towards a more sustainable warehouse. Proper waste management, recycling, and the use of eco-friendly cleaning agents can significantly reduce the facility’s environmental footprint.

Incorporating cleanliness into the daily routines of a warehouse, whether it’s through scheduled clean-ups, organising warehouse inventory, or investing in professional cleaning services, is paramount. It’s not just about presenting a polished exterior; it’s about creating an environment where efficiency, safety, and productivity converge. So, the next time you consider the ways to organise and optimise your warehouse, remember: cleanliness isn’t just next to godliness; it’s at the heart of a well-run warehouse.

What Warehouse Inventory Auditing Tactics Should Be Used?

Auditing is the backbone of inventory management. It’s the check and balance that keeps your inventory data accurate and trustworthy. Let’s uncover the tried-and-tested approaches to keep your warehouse inventory in check:

Cycle counting

Instead of shutting down operations to count everything, continuously count subsets of inventory. It’s more sustainable and offers regular snapshots of your inventory status.

ABC analysis

All items aren’t created equal. Prioritise your auditing focus on A-class, or highest volume SKUs. By honing in on these items, you can significantly improve your inventory accuracy.

Location sampling

Sometimes, a holistic view isn’t necessary. Randomly select storage areas to sample. It’s quicker and can often provide a good gauge of the overall inventory accuracy.

Verification audits

Double down on high-value goods. Regularly double-check inventory levels for these items to avoid costly discrepancies.

Blind audits

Eliminate bias. An independent auditor, unfamiliar with expected counts, assesses inventory accuracy without prior knowledge. This can often unearth discrepancies that may be overlooked by familiar eyes.

Zero-balance audits

Any items showing a zero on-hand quantity? Verify them. Sometimes, errors can lead to goods being marked as out of stock when they’re still available, or vice versa.

Supporting documents

It’s not just about counting. Require comprehensive audit paperwork detailing counts, corrections, adjustments, and more. This provides a paper trail and can be pivotal during reconciliations or disputes.

How Should Staff Be Trained on Organisational Protocols?

The lifeblood of any warehouse? Its staff. Proper training not only ensures efficient warehouse operations but also safeguards inventory and assets. Dive into the strategies to foster a well-trained team:

• Documented processes – Begin with the basics. Codify standard operating procedures, especially those related to inventory management and tasks within the warehouse. This serves as a reference point and a foundational guide for all staff.
• Visual aids – A picture speaks a thousand words. Infographics, flow charts, or even simple diagrams can often elucidate complex processes. Strategically post these in areas of the warehouse where they’re most relevant, aiding in real-time task execution.
• Hands-on training – Theory is vital, but practice makes perfect. New hires should shadow seasoned staff, gaining first-hand experience before they embark on tasks solo. This real-world application reinforces theoretical learning.
• Ongoing refreshers – The warehouse industry, like any other, evolves. New tools, technologies, and best practices emerge. Regular refresher courses ensure that the team remains at the forefront of efficient warehouse practices.
• Gamification – Engage the team while they learn. Introducing contests, leaderboards, or reward systems can motivate staff to not only adhere to but excel in following organisational protocols.
• Feedback loops – A two-way street. While training staff is pivotal, their on-ground experience can offer invaluable insights. Create platforms or sessions where they can share ideas, feedback, or suggestions to enhance workflows and storage systems.

At the heart of an organised warehouse is a well-trained team. Investing in their knowledge and skills is synonymous with investing in the warehouse’s productivity and efficiency.

Key Takeaways for Organising Your Warehouse Inventory

Key tips for efficient warehouse organisation include:

• Strategically categorise and classify all inventory
• Design an optimised layout tailored to inventory and workflow
• Install appropriate storage solutions and infrastructure
• Use consistent labelling and numbering for locations
• Consider a Warehouse Management System (WMS) to enhance speed, accuracy, and reporting
• Make organisation an ongoing priority through continuous improvement

Efficient Warehouse Organisation: The Blueprint for Success

In the intricate dance of warehouse operations, organisation emerges as the chief choreographer. Proper warehouse organisation ensures smooth flow, reduces bottlenecks, and improves overall efficiency.

To organise your warehouse effectively, you need a holistic approach that marries space, processes, tools, and people. It’s not just about placing items in racks; It’s about ensuring that every item, every process, and every person in the warehouse contributes to a seamless, efficient, and productive environment.

Only then can a warehouse truly be called organised and optimised for success.

With dedicated effort and the right systems, any business can transform a disorganised warehouse into an efficient organised operation. Maintaining good inventory organisation unlocks significant benefits for productivity, order fulfilment, inventory management, and the bottom line.

If you want help with your inventory storage, contact us today. Our experts can suggest the perfect warehouse storage solutions to keep your business in tip-top shape.