Running and managing a warehouse is no easy feat. The challenge gets bigger when there are more items needing to be stored. The biggest thing you need to remember if you are a manager of a warehouse or if you own one is that the placement of each product is key to maintaining a well-run warehouse. If the products are not in locations that are convenient for employees, the throughput of the warehouse will slow down by a lot and things will not function as they should.
Customers these days expect quick deliveries of the products they order and the demand from the online market are just always increasing, so having the most ideal throughput is necessary. In this blog post, we will explain more about the well kept secrets of optimal placements in a warehouse.
The importance of the arrangement
There are a lot of important cogs that have their necessary role in the machine that is a warehouse. Take these things as examples of the important cogs, specialized personnel, suitable racks, decent equipment to be able to move the products, as well as good management. Though, the way the products are placed is fundamental in making sure the other cogs work as well as they can. If products that are a hit with the customers and are constantly being bought are placed on super high shelves, the process slows down a lot more compared to if those products were to be in a place that is easier to access. Using the ABC method to organize your products will make sure the process in the warehouse goes a lot smoother.
The ABC method
The ABC method is an organizational technique that improves productivity and efficiency in a warehouse. The way it works is by placing the products that customers buy the most in places that are easier to reach. The A products are the ones that take up 20% of your stock and have an 80% turnover, those go in the places that are easy to reach such as shelves that are at eye level. The B products are to be placed on the bottom shelf, they are not as important as the A products but are still more important than the C products so it should still be easy to get to them. B products are 30% of your stock and have a 15% turnover. Finally, there are the C products, they get the least turnover and so will be put on the top shelf as it’s the least important.
If the warehouse is on the smaller side and space is starting to lack more, then it’s time for some measures to be taken. Moving to a bigger warehouse is not necessary, instead invest in some mezzanine floors. They are installed in your warehouse to create another floor for extra space. This is incredibly useful and will cost a lot less than relocating to a bigger space.