Important Storage Tips For Your Inventory
Every business needs to make sure that their inventory is stored in an organised and safe manner. Failure to store your inventory properly can lead to items getting spoiled, damaged, stolen, misplaced or forgotten.
Whether you’re a large company with its own warehouse or a small company with nothing more than a small stock cupboard, it’s vital that you develop an efficient inventory storage system. Below are just a few universal tips that could be worth following to help your business run smoothly.
Invest in proper shelving
Choosing the right shelving is one of the most important decisions you can make. It’s important that you make the most of the space you have while also leaving enough aisle space for picking. Your shelves also need to be able to support the size and weight of all the items in your inventory. Choose shelves that aren’t strong enough and they could collapse. Choose shelves that are too slim and you could find that certain large items can’t fit on them.
Consider investing in purpose-built warehouse racking to make sure that your shelving is fit for purpose. You could consider static shelving or you could consider mobile shelving to maximise space (this allows multiple shelves to be stacked against one another when not in use).
Divide inventory into categories
Rather than just storing items willy-nilly, you need to develop a layout within your warehouse or stock cupboard. A logical way to organise items is to divide them into categories. In a restaurant walk-in fridge, this could include having separate areas for meats, fish, dairy, vegetables and fruit.
Categorising items makes it easy to train staff how to find certain items. Some companies prefer to put in place an alphabetical system. Other companies find it more efficient to categorise items by demand – often placing the most in-demand items near the front of the warehouse and the least in-demand items near the back. It likely depends on the nature of your business as to what is the best categorisation method.
Label everything
On top of categorising items, it’s a good practice to label items to help them be more easily located. Labels could be added to shelves. If you’ve got a large warehouse with multiple aisles, you may want to consider signposting each aisle. You could even consider supplying maps around the warehouse.
This can help new workers to find items independently so that you don’t have to spend as much time training workers where to find each item. Make sure that labels are legible, otherwise they will be of no use.
Use inventory tracking software
Inventory tracking software solutions can help you to digitally record the location of every item in your warehouse. You can also store important information on items such as their quantity, their arrival date and their expiry date. Using this information, it may be possible to set up alerts when stock is low or items are nearing their expiry date. You may also be able to use data to track demand for items over time.
RFID tags or barcodes could be used in conjunction with this software to help you more easily track each item – including when it leaves the premises. Make sure to spend time shopping around for inventory tracking software in order to find an application that is affordable, reputable and suitable to your business.
Practice FIFO or LIFO
Businesses typically use the FIFO (first in first out) or LIFO (last in first out) method to help determine how to prioritise which items get processed first. FIFO is the most logical method as it involves using up the oldest stock first – preventing items from expiring. This usually involves rotating stock so that the oldest items are most accessible and the newest items are stored behind them. LIFO is generally only used during periods of inflation or in instances where customers pay extra for fresher goods.
Determine which method is best for you. FIFO is likely to be the method that most businesses use and is generally the easiest system to manage.
Maintain the right storage conditions
Your inventory needs to be stored in the right conditions in order to prevent it from spoiling or getting damaged. Certain items may need to be stored at certain temperatures, which could mean having to use refrigerators or climate-controlled rooms. Other items may need to be kept away from moisture or sunlight. There could even be items that are toxic or prone to contamination and need to be stored separately from other items.
Consider the perfect storage conditions for each item and do your best to meet these storage conditions. Food, medicine, chemicals and flammable items are some of the most important items to store properly.
Use vertical space
When it comes to making the most of the space in your warehouse, you should make sure that you are taking advantage of vertical space. Taller shelving could allow you to fit more items into your warehouse.
Of course, there are disadvantages that come with storing items too high. It may take longer to pick these items if workers have to use a forklift or a ladder to retrieve them. There could also be a risk of falling while trying to retrieve these items, or a risk of items falling on top of staff if they are not stored safely. Storing heavier items at the bottom and lighter items at the top is a common practice for reducing injuries.
Carry out regular audits
Audits can be carried out regularly to make sure that your storage system is as safe and efficient as it can possibly be. If your inventory is constantly changing, it could be important to carry out audits to come up with new categorisation systems. Audits can also help to make sure that no items have been forgotten or miscounted due to errors.
During an audit, take your time to manually inspect all items on all shelves. You can also use software to help you explore new warehouse layouts, as well as identifying items that you may be overstocking or regularly understocking.
Establish a reorder point
Knowing when to replenish stock involves establishing reorder points. When items reach a certain quantity, you can then set up alerts to remind you to place new orders so that you don’t run out of stock. Software can help you to establish these reorder points and send you alerts.
On top of having a clear reorder point for each item, it could be important to establish a maximum quantity for each item. This can prevent you from ordering too many items and not being able to store or process them all. This maximum quantity could vary throughout the year (during periods of high demand, you may need to stock higher reserves of certain items).
Put in place security measures
Theft affects businesses of all sizes. By putting in place various security measures, you can prevent items being stolen or help to catch thieves.
Having a form of access control for your warehouse or stock cupboard could be the most basic and reliable form of security. This prevents unauthorised personnel from gaining access and stealing items. Access control could include a key, key card, a combination lock or a digital keypad. Another security measure that could be worth investing in is security cameras. These could be installed inside or outside your warehouse. Storing cameras inside your warehouse prevents staff from stealing items – which can unfortunately be a risk in many industries.
This is a collaborative post.
