What do you do if your warehouse is running out of space?

1. Need to classify ABC category parts based on Consumption trend. 2. Make re-ordering system at cut up inventory level based on transit time 3. Take action to clear high price slow moving items.

Before considering alternative storage solutions, you need a visit to your warehouse and; 1. Make sure the inventory is stocked properly and there is no wasted space. 2. Identify your non-moving inventory and liquidate or utilize that inventory. 3. Identify which SKU holds the most area and which SKU has built-up inventory and what is the underlying reason for the spike in inventory. 4. Take a close look at your supply chain and production line to identify bottlenecks resulting in spikes in inventory (in other words, optimize your supply chain and production line).

If your warehouse is running out of space, you could consider optimizing your inventory management, reorganizing storage layouts, implementing vertical storage solutions.

Also implement a vertical storage solutions and decluttering unused items. You can also consider upgrading your inventory management system to improve space utilization.

1. Do analysis of items in the inventory. 2. identify slow moving items in the warehouse. 3. Identify factors responsible for the slow moving items. 4. If factors are outside control, source for another warehouse. 5. Determine the cost and review implication. 6. Consider just-in-time method warehouse management

1. Invest in inventory management software equipped with optimization features to analyze inventory data and suggest efficient storage strategies. 2. Utilize software functionalities such as slotting optimization algorithms to maximize space utilization by identifying optimal storage locations for different products based on size, weight, and turnover frequency. 3. Leverage real-time inventory tracking and forecasting capabilities to maintain optimal inventory levels and prevent overstocking, thereby minimizing the risk of space constraints in the warehouse.

One of the best strategies I've found for optimizing warehouse space is utilizing inventory optimization software. This software helps analyze demand patterns, forecast inventory needs, and automate replenishment processes. It's been crucial in reducing safety stock levels, preventing overstocking or stockouts, and balancing inventory across multiple locations. Additionally, it aids in optimizing warehouse layout, slotting, and picking methods, which significantly increases storage capacity and boosts productivity.

Inventory management software is a game changer to help optimize warehouse space and save costs in the long-term. You have full visibility into what you are currently storing, as well as the ability to determine fast and slow moving items. You can adjust supplier orders using this data. Additionally, you can use this to optimize not only the space but where items are allocated to achieve maximum efficiency.

1:having Great software which help to pull the data of occupied storage -based on team work on it to unutilized space where needed 2:Best Slotting based on Business Demand team to Define Storage 3: UHI (Unhealthy Inventory ) need to clear thorough Liquidation

Figure out why. If you are running out of space and haven't significantly grown your business operations it's likely you have an inventory management problem and you need to understand the root cause (e.g. low turn, high returns, overbuying, etc.). But don't wait this can often be a symptom of larger business and supply chain issues. You should also determine what is considered healthy inventory levels for your business at both peak and non-peak times.

I will revisit the warehouse each and every space then give the proposal to the management to ask principal to dispatch required stock as per sales target with requirement to liquidate the stock as per day. So that the Sales and Inventory turnover process could be circulate properly on monthly basis. It can be manage with the collaboration between Sales and Supply chain.

Collaborating with logistics partners can create opportunities for cross-docking, reducing the need for long-term storage. I would consider leveraging external storage facilities, which can provide immediate relief for warehouses near capacity or over. Once warehouses approach 85% capacity and over start to see degradation in performance.

If you are falling short of warehouse space, it might not necessarily be a bad thing. It's also a sign of a growing business and an indicator demand is far ahead of supply. Explore alternative options like leasing a new warehouse facility from scratch or taking up an additional rented space in a shared warehouse setting. In addition, one could also start setting up smaller warehouses across the length and breadth of the business, which may have cost benefits in the long run, thus reducing dependence on the master facility.

quick Solution, Engage 3rd Party warehouse or rent Container (Temporary), #Check Demand #Improve Lead Time #Item Category

1. Explore options for off-site storage facilities or third-party logistics providers to temporarily accommodate excess inventory during peak periods or space constraints. 2. Check to see if it is possible to use vertical storage solutions like mezzanine levels, vertical carousels, or automated storage and retrieval systems (AS/RS) to get the most out of the space without making the warehouse bigger. 3. Optimize layout and shelving configurations within the existing warehouse space to create additional storage capacity, such as by reorganizing aisles, adjusting rack heights, or implementing mobile shelving systems to accommodate fluctuating inventory levels.

1. Implement automated material handling systems such as conveyor belts, robotic palletizers, or automated guided vehicles (AGVs) to streamline warehouse operations and optimize space utilization. 2. Utilize automated storage and retrieval systems (AS/RS) to increase storage density and efficiency by maximizing vertical space utilization and reducing aisle requirements. 3. Explore opportunities for process automation, such as automated order picking systems or inventory replenishment processes, to minimize manual handling and optimize workflow efficiency within the warehouse.

Another way to free up some space in your warehouse is to invest in warehouse automation technologies that can help you streamline your operations, reduce your labor costs, and increase your accuracy and speed. Warehouse automation can include systems such as conveyor belts, robots, automated storage and retrieval systems, or barcode scanners that can help you move, store, and track your inventory more efficiently and effectively. Warehouse automation can also help you improve your safety, quality, and sustainability standards in your warehouse.

We need to evaluate the optimised inventory levels based on - 1. Business requirements 2. SKU complexity 3. SKU production lead time 4. Delivery lead time 5. Overall TAT and supply schedules

1. Evaluate current inventory management policies and procedures to identify areas for improvement in space utilization and inventory control. 2. Implement stricter inventory management practices, such as regular cycle counting, inventory reconciliation, and stock rotation, to prevent overstocking and minimize waste of storage space. 3. Establish clear guidelines for inventory storage and replenishment, including maximum storage capacities, shelving configurations, and safety protocols, to ensure efficient use of warehouse space while maintaining compliance with regulatory requirements.

In addition to what is said, as warehouse/inventory manager you should not reach to the state of space running out. This should be expected and planned for earlier if you have good sight over your business, how it is growing, how the supply market is trending and what’s your place in the benchmark compared to others in the industry.

If a warehouse is running out of space, several steps can be taken. First, analyze inventory to identify slow-moving or obsolete items for clearance. Implement efficient storage solutions like vertical racking or mezzanine floors to maximize vertical space. Consider outsourcing storage or utilizing off-site storage facilities for overflow items. Implement just-in-time inventory practices to reduce excess stock on hand. Optimize layout and organization for better space utilization. Utilize software systems for inventory management and space optimization. Lastly, consider expanding the warehouse or relocating to a larger facility if necessary. Regularly reassessing and adjusting strategies ensures efficient space management.

Another food for thought: 1. Improve your stocking policy, and internal kead time 2. Categorize the supplying methode, particularly for general & consumable.part 3. Implement Pooling strategy, if you have a lot facility accros the area/region/nation 4. Ask your reliable partner to stock for you and when possible, ask them also to take some from your warehouse

There are many reasons why inventory might be increasing. Understanding the reason can help determine the next step. If, for example supplier leads times have been increasing causing you to carry more inventory. There are numerous approaches to work with the supplier to mitigate some of the issue. It could also be due to seasonality. At Berry, we would carry a significant amount of stock to support a major customer through hurricane season. This caused a 30-40+% increase in inventory and space constraints.

To understand capacity and space utilization, you must first understand product mix, seasonality, and your desired fill time. Partner with sales and analytics team to understand where you are with your inventory and make smart business decisions. Example: if you are holding heavy on winter specific merchandise, knowing you are going into summer season, partner with sales to have a “Winter Close Out” sale.