As you might’ve guessed, warehouse management is all about managing and organizing everything that goes on in the facility. Everything from maintaining equipment, monitoring inventory, and improving work processes comes under management, with the overall goal to create efficiency – in terms of both time and cost.

With speedy delivery becoming the norm – for both large and small businesses – having an organized warehouse is integral. Without it, precious time can be wasted finding items or realizing there’s a stock shortage that can’t be fixed.

How to organize your warehouse layout

There are two factors to consider when arranging your plant warehouse: Room for inventory and room for staff. Staff need to be able to freely travel and move around the area in order to get the job done, but there also needs to be enough room for stock that’s in high demand.

Before switching things around, make sure to plan in advance. Use a grid sketch to plan where each department will go within the warehouse to make it easier to visualize.

Effective area labeling

Pickers have a hard enough time selecting products in the short times they’re allotted. Creative an effective signage method can significantly help them know exactly where items will be stored. This not only keeps the warehouse tidier but also helps to improve productivity and get products to the customer faster. Most warehouse managers stick to a numerical and alphabetical system to make navigating aisle sections easier.

Inventory optimization

It’s a common fact that around 20% of a business’s inventory is responsible for a massive 80% of sales. As such, there is some serious work that can be done in optimizing stock to meet demand while also making the work of warehouse staff easier.

Take a look at your full catalog and categorize each item into three sections A-C. The first segment will be for high ticket items with low sale frequency. The second, will be moderately priced items with moderate sales numbers. Finally, there are the low-ticket items that frequently sell.

Using this simple categorization, you can then prioritize space in the warehouse effectively. Fast movers go nearer the packing area, while slow-moving items can be further away.

Optimize the packing process

We’ve all received a massive parcel at home, only to find that the item inside is tiny. And that’s such a waste of space, material, and – as larger parcels cost more to ship – money.

Warehouses that offer a number of packet sizes can increase efficiency, save space and reduce delivery costs for them and the customer. While not all items are going to fit into a single box size, having 3-5 different sizes will likely accommodate for items big and small.

It’s also worth mixing up the packaging materials, depending on the value of the item. Small, durable pieces can be packed with less material, while delicate objects could benefit from more high-quality stuffing. By using specific packing materials for each product, you can reduce waste and save money.

This fast-paced post was the ultimate beginner’s guide to warehouse management – hopefully, you will find it useful.