A warehouse is a place where goods are stored – usually used by exporters, wholesalers and traders. One of the biggest challenges associated with proper inventory management is space congestion. Technically, a warehouse is considered crowded when it takes up more than 85% of its space – and this work means not only the warehouse component, but also other parts within the warehouse, including reception, processing and including shipping areas. As a warehouse manager, your primary response to congestion is warehouse expansion. However, this is not ideal in most cases; Sometimes space constraints and limited budgets. If you run out of warehouse space, there are several ways to solve the problem without expanding your warehouse.

Why are people running out of storage space?

So why are people fleeing the warehouse? As inventory grows, warehouse needs change rapidly. The only department stores where people work in one location are special warehouses filled with capital goods such as high cold stores. In contrast, user-focused department stores – the average FMCG inventory moves exceptionally fast and needs to be updated at least every five years. The main reasons are that the product range is changing, sales levels are changing, acquisitions are ongoing and storage space that was good last year will hardly last for the next five years. Since companies generally do not change inventories frequently, companies tend to: They are trying to rent out more storage space, which comes with added cost and complexity as well as the issue of what to store and where. Eventually things get worse and people start worrying about running out of storage space. The biggest concern is that you don’t want to move from one warehouse to another, you want to improve your existing storage space. In this regard, spiral conveyors can offer a major advantage – they take up a fraction of the floor space. When it comes to robotic technology, specially designed cobots can be effectively used to minimize the movements of voters working with this technology. Since the picker takes longer to rotate, collaborative robots can boost productivity and eliminate storage space.

Achieve storage space optimization in three easy steps:

So suppose you run out of storage space to the point of frustration? With the warehouse full, there is no storage space – a constraint on production capacity to say the least. If a stock is full, here are three specific things you can do to improve the situation.

Evaluate the inventory plan.

There are several racks that move up and down the warehouse as you normally would in a warehouse. There will be separate areas for shipping and postage depending on the decor of the floor. First off – I want to take a look at stock media. You need to evaluate whether the storage media you use is suitable for handling products in the warehouse. Storage mediums, including shelving types and live storage types, are likely to be slightly outdated – all of which can cause overlays. This can be very tight storage, especially in the case of carousel storage systems. In short – take a look at the storage media and see if it meets your storage needs.

Adding cleavage.

If you’ve never used the word stock before, let’s just say it’s magic. Just add the slotting system and do so in a spreadsheet. Basically, a slitting system allows products to be more efficiently placed in the warehouse and minimizes the cooking path. Adding slotting will prevent people from walking up and down the aisles trying to fill orders. Therefore, you may find that stock products fall into different categories such as A, B, C and D. Since the “S” usually moves quickly, you may want to place the A category near the shipping post so it can be picked up quickly and easily brought out for delivery. At the same time you will have B, C and the like – the slower moving goods will be placed at the back of the warehouse. Slotting is a great way to improve inventory management, productivity and space optimization.

Estimating stock storage.

Now let’s talk about the warehouse itself – in general or, double-check whether you have assessed the safety stocks and got that balanced? If the answer is no, then you must do it now as it will help you reduce the amount of inventory in the warehouse. This is very easy to do; all you need to do is check the storage media, perform the categorization of products, and ensure they are in the right place. Lastly, you must ensure that you are not storing too much inventory in your warehouse. That said, assess your warehouse and see what you can do if it is over-capacity. Consider media storage, slotting, and inventory capacity.

The Takeaway

Efficient warehouse management and warehouse space optimization comprise several things. The solution isn’t about moving to a more extensive warehouse or renting additional warehouses, but you can free up space by effectively planning the layout of the warehouse floor. Never let go of the 85% rule, which never exceeds 85% of the warehouse occupancy, so you have sufficient room left to execute all warehouse duties.