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management | 4 mins read

8 Ways to Improve Inventory Organization and Efficiency

8 ways to improve inventory organization and efficiency
Hanh Truong

By Hanh Truong

Having an effective inventory organization system is the foundation of a business's success. By sorting out and keeping the warehouse in order, business owners and staff members will be able to easily locate products and navigate around their workspace. This will minimize delays in workflow and ensure that operations can run efficiently.

8 Ways to Improve Inventory Organization

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Maintaining an organized warehouse provides many benefits to businesses, such as increased order fulfillment accuracy and robust inventory tracking. Additionally, since the facility would be uncluttered and well-defined, employees will be able to enjoy a clean, safe, and productive work environment.

Organizations can improve their warehouse organization skills by implementing 8 best practices.

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1. Dispose of Unused Inventory

Unused or old inventory products can clutter a warehouse's space. Warehouse managers should assess their facility and remove items that have decreased in quality or value and are no longer useful.

Supplies that are not utilized by staff members, such as older office computers and printers, should also be removed or donated. Generally, it is recommended that companies dispose of goods that they have not used or sold within 6 months to a year.

By removing unused inventory, businesses will have more space to buy and store profitable products.

Management should identify and monitor their most popular inventory products. Those that sell the best and move quickly within the warehouse should be placed near order fulfillment areas.

This will minimize the time employees need to find the product in the facility and return to the packing area to complete their order fulfillment tasks.

3. Establish a Warehouse Layout

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When creating a warehouse layout, management should consider maximizing all available space, enhancing accessibility to products, and having storage flexibility. Since all floor plans are unique, managers should take time to explore their warehouse to gain an understanding of their employee's workspace.

For example, they should examine the different areas for production, receiving, and packing and make sure that there is ample room between each section. This will allow employees to have more space to navigate throughout the warehouse and ensure that forklifts or large machinery will not obstruct the walkway.

When developing a layout, it may also be helpful to collect feedback from warehouse staff about their workflow. Their comments will provide insight into what can be improved and how the floor plan can be optimized.

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4. Use Storage Units

Storage units, such as heavy-duty shelves and bins, will help maximize space and ensure that inventory goods are properly and safely stored.

Managers should separate products based on product type, supplier, or brand and place them in the same storage unit. This will make it easier for warehouse staff members to find and track.

5. Utilize an Inventory Management App

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Many modern inventory management solutions have mobile app capabilities that enable warehouse managers to track their stock levels on their phone or tablet.

These software systems also have barcode scanning and voice search features, which can help employees navigate through their facility and find the products they need.

6. Have a Labeling System

Everything in the warehouse should be labeled, including work areas, pathways, inventory products, and storage units. This will enhance efficiency since employees will be able to locate specific products.

Managers should also install safety signs that indicate capacity limits and forklift hazards. These displays will promote workplace safety by ensuring that staff members know how to properly handle supplies, as well as what areas to avoid to stay safe.

7. Optimize the Receiving Area

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When receiving new inventory, warehouse staff should conduct a quality control check to make sure that the right products were delivered and that they are of the expected quality.

There should be enough space in the receiving area to allow employees to sort through and adequately store incoming inventory. Any damaged or defective goods should be labeled and placed in a separate area so that it does not get used or sold to customers.

By optimizing the receiving process, managers can quickly organize their inventory and guarantee that goods are handled correctly from the start.

8. Have Regular Maintenance

Management should regularly maintain organization by performing warehouse checks each day. For example, at the end of each workday, executives should scan the work areas to see if spaces are cleaned, floors are swept, and supplies are put back into the correct place.

In the case that organization protocols were not followed, managers can hold a meeting at the start of the next day to address any cleaning issues.

Businesses should also periodically review their operations to make sure that the established procedures are working as intended. Executives can look into their employees' productivity, for instance, to see if adjustments need to be made to the warehouse space.

Having a clean and organized warehouse is key to overall operational efficiency. By following these best practices, businesses will be able to improve their customer service and enhance their productivity.

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