In the world of e-commerce and omnichannel business, the management and organization of stocks is an important factor for the proper functioning of a warehouse. This allows, on the one hand, to control input and output flows and, on the other hand, to guarantee the availability of products and the speed of processing orders.
In fact, good inventory management allows you to be competitive in the market, helps to reduce costs and offers better tracking of goods. In short, warehouse optimization improves business productivity. On the other hand, poor inventory management can have disastrous consequences: delay in delivery times, loss of goods, accident at work, etc.
Here are some tips that can help you optimize your warehouse management.
Mastering the ABC Storage Method
This is the most commonly used classification technique in warehouses. It is based on Pareto’s law (or 80-20 law). Its principle is simple. It is about categorizing the goods in order of importance in three items namely A, B and C. To succeed in this categorization, you must take into account the rate of rotation that you must carry out with each type of goods. For this, it is important to make a relationship between the outputs and the stock. So, we get:
- Goods A: are the ones that rotate the most, that is, 80% of rotations and most of the time correspond to 20% of the references. These goods are the ones that have the most value, that is, the best-selling products. In fact, goods A are the ones that generate the most revenue. To do this, they are placed in the lowest areas of the warehouse on a pallet close to the entry and exit points of the goods. This location allows the operator to have direct and easy access to these products;
- Goods B: these goods are equivalent to 30% of the references and have an average turnover of 15%. Considered to be of average value, these products don’t go out of stock very often and are usually found in mid-height areas. Access to goods B is not as direct as to goods A;
- Goods C: only make 5% rotations, against 50% of the references. These goods have a very low value. To do this, they are located high on shelves that are less accessible.
By adopting this system, the purchase and replenishment of stocks are carried out according to the economic contribution they constitute, and not by their volume or quantity. With this setup, you will surely reach your most wanted products more easily. In return, you gain in productivity while improving your flow of goods.
Optimize storage spaces
To easily manage your logistics flows, it is important to optimize your storage spaces while maintaining a handling game for your teams. This way :
- For the management of your files: make sure that the game is almost zero to optimize your logistical storage to the maximum;
- For manual handling: to grip the goods, a few centimeters of lateral clearance (L) and upper clearance (H) are required;
- For machine handling: opt for a side clearance of 75 mm and a top clearance of 100 mm if you wish to use machines.
However, a solution has been increasingly commented on in recent years: palletizing. It is the act of storing and transporting goods as a unit from pallets. It is a system that is becoming more and more important in the field of logistics because of these many advantages.
Manage logistics flows
To better manage logistics flows in a warehouse, you can choose between two systems, namely: the FIFO and LIFO systems.
The principle of the FIFO system (First in – First out)
With this method, goods are loaded on one side of the shelving system and then picked up on the other side of the system. The FIFO principle consists of following a chronological order of arrival in order to pick up the goods. This solution is highly recommended for efficient management of perishable food products.
The principle of the LIFO (Last In First Out) system
Unlike the FIFO system, the LIFO system is one whereby the last products that have entered are removed from your stock first. This is the ideal method for those who sell non-perishable products that do not have an expiration date. Working on the stacking principle, the LIFO system allows you to avoid handling the game in double access.