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You're facing new inventory categories. How can you optimize storage layout effectively?

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Facing new inventory categories can be daunting, but optimizing your storage layout is a critical step in managing these additions effectively. Inventory management requires strategic thinking about how to store items in a way that maximizes space and efficiency while ensuring accessibility. Whether your inventory has grown due to business expansion or diversification, understanding how to rearrange your storage space to accommodate these changes is essential. By carefully planning and implementing a new layout, you can maintain a smooth operation and avoid potential pitfalls such as overstocking or difficulty locating items.

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Sumit Chaudhary

Head of Sourcing | PGDM in SCM&L
Asif Jamil Janjua CSCP

Logistics & Warehouse Operations Manager | Supply Chain & Inventory Management Expert | Strategic Warehouse Management…

1 Assess Needs

Start by evaluating the specific needs of your new inventory categories. Consider the size, shape, and turnover rate of these items. High-turnover items should be easily accessible, while bulky or heavy items might need special storage solutions like reinforced shelving. Understanding the characteristics of your new inventory will inform decisions about where and how to store these items effectively within your existing layout. This initial assessment is crucial for creating a storage plan that minimizes handling time and maximizes space utilization.

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Asif Jamil Janjua CSCP

Logistics & Warehouse Operations Manager | Supply Chain & Inventory Management Expert | Strategic Warehouse Management | Material & Inventory Control | Inventory Auditing.
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To optimize storage layout for new inventory categories, start by analyzing the characteristics and demand patterns of each category. Group similar items together to streamline access and reduce retrieval times. Use adjustable shelving and modular systems to accommodate varying sizes and quantities. Implement clear labeling and signage for easy identification. Regularly review and adjust the layout based on inventory turnover and usage trends. By tailoring the storage setup to the specific needs of each category, you can enhance efficiency and organization.

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Sumit Chaudhary

Head of Sourcing | PGDM in SCM&L
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Initial assessment is very important in a storage plan that gives us maximum utilisation of space and minimum handling issues .

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Hamid Etezadkhah

Vice President, Total Supply Chain, MBA-MIBS
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Proactively at the introduction time of a new product, the life expectancy and the EOL of it should be forecasted. Then calculate the average sitting in stock time and volume/space requirements of this new product. Hopefully, you already have an exit plan and defined timing of the old product that is being replaced by this new product so you make planned storage space. This is achievable by proactively collaborate, negotiate, and get consensus with all cross functional teams as to when to end servicing the old product and start servicing the new one. Your customers should be fully aware of this transition so their demand timing to match up with your supply transition.

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2 Plan Layout

Once you've assessed the needs of your new inventory, begin planning your storage layout. This involves determining the best placement for each category to streamline picking processes and reduce movement. Utilize vertical space to maximize storage capacity and consider the use of modular shelving or movable racks for flexibility. Keep in mind the flow of goods from receiving to shipping and try to minimize travel distance for frequently accessed items. A well-thought-out layout will not only improve storage efficiency but also enhance worker productivity.

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Sumit Chaudhary

Head of Sourcing | PGDM in SCM&L
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The layout should be as per the convenience of movement ,maximum storage,minimum travel distance to the shop floor.well designed layout out will not give only maximum utilisation of storage space but also improve workforce productivity.

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3 Update Systems

Integrating your new inventory categories into your existing inventory management system is vital. Update your database to include these items, ensuring all information is accurate and up-to-date. This might involve adjusting software settings or retraining staff on new procedures. An effective inventory management system allows for real-time tracking of stock levels and location, which is essential for maintaining order accuracy and preventing stockouts or overstock situations.

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4 Label Clearly

Clear labeling is a cornerstone of effective inventory management. Labels should include essential information such as product name, SKU (Stock Keeping Unit), and barcode for easy scanning. The labels need to be visible and durable to withstand the warehouse environment. Implementing a consistent labeling system across all inventory categories aids in reducing errors during picking and restocking, ensuring that every item is easy to locate and track.

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5 Review Regularly

Inventory needs are dynamic, so regular reviews of your storage layout are necessary. Periodically evaluate the effectiveness of your layout, considering any changes in inventory flow or volume. Adjustments may be required to accommodate seasonal fluctuations or new product launches. Regular reviews enable you to stay ahead of potential storage issues and adapt your layout to maintain optimal efficiency.

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6 Train Staff

Finally, ensure that all staff members are trained on the new storage layout and handling procedures for the new inventory categories. Proper training minimizes the risk of errors and accidents, leading to a safer and more efficient workplace. Staff should be familiar with the location of items, handling requirements, and any changes to picking or restocking processes. Investing in staff training is an investment in the overall productivity and accuracy of your inventory management operations.

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You're facing new inventory categories. How can you optimize storage layout effectively?

1

2

3

4

5

6

1 Assess Needs

2 Plan Layout

3 Update Systems

4 Label Clearly

5 Review Regularly

6 Train Staff

Inventory Management

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You're facing new inventory categories. How can you optimize storage layout effectively?

1

2

3

4

5

6

1 Assess Needs

2 Plan Layout

3 Update Systems

4 Label Clearly

5 Review Regularly

6 Train Staff

Inventory Management

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