6 Steps to an Efficient Warehouse Organization

Key Takeaway

Efficient warehouse organization is crucial for maximizing space, productivity and inventory control. The most important steps to organize a warehouse involve creating a floor plan, applying the 80-20 rule, using strategic labeling, and storing items based on frequency of use.

Setting up a warehouse in an efficient and organized manner is beneficial for a number of reasons.

Assist with inventory control – time management- and streamlines the business operations (ordering, storing, pulling, and shipping)

Here are the important steps to setup an effective warehouse organization system:

1. Create a Floor Plan & use the 80-20 Rule for easy access and increase productivity

This allows you to see where you want to store items, as well as any physical space limitations of the building itself. When creating your floor plan, you’ll want to group like items together. Within this grouping of items, you may also want to apply the 80-20 rule. This is where you create a space within your warehouse for the items that comprise the top 20% of sales for 80% of your orders, so they are more easily picked. It might take a bit of work upfront, but this warehouse within a warehouse can drastically increase picker productivity. It is important that this area is able to accommodate high levels of traffic, since it is going to see the most usage.

2. Select Storage and Shelving Solutions

You’ll want to select shelving and storage solutions that will suit your needs. Consider quality and quantity. You want to have enough storage space that is going to last. Pallet racking systems are the preferred choice as they are incredibly durable and safe, and allow you to make the most use of your vertical space. Warehouse racks are the go-to choice for the foundation of warehouse organization, but there are several different types of warehouse racking to choose from including:

Drive-in or drive-thru racking
Flow-through racking
Push back shelving
Cantilever racks

The best choice depends on the nature of your operation, the size and volume of products that flow through your facility, and other considerations. You’ll also want to consider shipping containers, storage bins, and even coolers and freezers, if you’re handling temperature-sensitive inventory.

3. Label Racks, Shelves, Containers, and Other Warehouse Organization Assets

Before placing anything in the warehouse, label everything: warehouse racks, shelves, docks, everything. Warehouse label solutions are designed specifically to meet the unique needs of the warehouse. By choosing the right label solution, your warehouse will be easier to navigate, picking and packing will be streamlined, and organizational efficiency will get a boost overall. It is much faster and simpler to look for a barcode, SKU, or other number system to find the right items than navigating through dozens of aisles to find the right section, the right shelf, and the right product.

4. Maximize Space Utilization

When stocking your warehouse, it is important to maximize the use of vertical space by stacking shelves. This will also help create a cleaner and more organized warehouse. Putting less frequently-purchased items higher up can help maximize both space and productivity, making the fastest-moving items easiest to access and closer to the loading dock. Product size and weight will also be a major determining factor in how you choose to organize your warehouse.

5. Schedule Regular Maintenance

Keep your warehouse organized by scheduling frequent cleanings and by ensuring that aisles are kept clear of obstacles. Having policies and procedures in place for incoming and shipping inventory will help to ensure that your warehouse is kept organized, and that inventory is accurately accounted for.

6. Conduct Periodic Audits and Reviews

Finally, you’ll also want to periodically review your inventory management and warehouse organization systems for efficiency and ensure that you are maximizing your space. Most importantly, ensure that everything is up to code and safe for anyone who enters the warehouse.

These practices will boost both productivity and the warehouse operations cost-effectiveness.

Unlock Your Warehouse Potential Today