The Importance of Warehouse Organization

An organized warehouse is crucial for success. No matter what kind of products, materials and equipment you have, creating a well-planned, streamlined space can improve productivity, efficiency and safety. Discover the top strategies for organizing a warehouse below.

What Is Warehousing and Distribution Management?

There are multiple moving parts in warehousing and distribution. Between receiving, picking, packing, storing and shipping, you and your team manage several different processes simultaneously. Amid the different tasks you might complete in a day, you likely oversee many finer details that contribute to operational success, such as:

• Tracking quantities.
• Organizing products.
• Finalizing orders.

Follow proper organization techniques to keep that system moving smoothly. A disorganized warehouse can lead to serious issues, from cluttered aisles that cause safety hazards to improper storage methods that damage goods. Instilling organization in your overall management approach can make all the difference in your success.

Benefits of Warehouse Management and Organization

The right warehouse inventory management strategy can lead to a few notable advantages, including:

• Increased productivity: An organized warehouse stocks goods in specific, documented locations. It also includes clear, well-spaced pathways that allow workers and equipment to easily navigate aisles and find the items they need. As a result, employees spend less time searching for items and materials, boosting order fulfillment rates and overall productivity.
• Enhanced safety: When everything has a place, keeping aisles clear of clutter is easier. Properly spacing aisles is also an important part of organization, as it ensures you have enough space to store different items. With wider, orderly aisles throughout the warehouse, workers are much less likely to experience accidents due to tripping or falling objects.
• Lower error rates and damaged goods: A clear, straightforward warehouse management approach enables team members to make the right decisions, which can significantly impact customer satisfaction. For example, an organized picking system allows a worker to quickly identify an item’s location and select it for packing. Additionally, placing goods in secure, designated areas helps reduce damage from improper stacking.
• Better cost savings: Many of the main benefits of an organized warehouse contribute to cost savings. As your warehouse management system makes a difference in areas like productivity, safety and accuracy, you can cut costs due to inefficient processes. Much less of your budget is dedicated to energy overconsumption and excess waste.

How to Organize a Warehouse

With the above benefits in mind, you may want to take steps to reevaluate and improve your existing warehouse setup. As you scale your operations, you’ll likely need to reassess your processes so you can manage growth. Either way, organizing a warehouse starts in a few specific areas, including overall layout, inventory management and workspace setup. Here are several ideas to get you started:

1. Optimize Your Current Layout

Assess your warehouse’s existing layout. Does every process flow in the order of operations? Do you spot any bottlenecks that need to be ironed out? Speak with staff about their experiences navigating the warehouse. Ideally, everything will have a clear path and occur in a relatively straight line.

2. Use Labels and Signs

Clearly designate zones throughout the space with signage. It should be easy to immediately understand the purpose of a specific area or aisle. As you create designated zones, you can also label shelves, aisle entries and exits, and any specific restrictions you want to note, such as ceiling height.

3. Classify Inventory

Take inventory of all the goods in your warehouse. This way, you can categorize your stock-keeping units (SKUs) based on different characteristics, as well as how often they’re picked and moved through the warehouse. A detailed picture of your inventory can inform your organizational strategies for each item.

4. Post Warehouse Maps

Part of upholding an organized layout is ensuring employees are informed. Once your layout is set up properly, create and post layout maps throughout the area. Over time, workers can navigate the space without the maps, but they’ll still remain helpful for new employees and training purposes.

5. Store Items Properly

A huge aspect of warehouse organization is storing goods properly in secure locations. Consider different warehouse storage options and what might suit your inventory best. Calculating storage capacity is also important to ensure you’re using space effectively without creating safety issues.

6. Leave Room for Safety Stock

While you’re classifying and compartmentalizing goods into the proper containers, shelves and aisles, be sure to leave space for safety stock. Depending on your warehouse, extra inventory can be extremely valuable to avoid shortages.

If you need additional stock to navigate spikes in demand, designate a specific area in the warehouse to keep things organized.

7. Clean Workspaces and Zones Regularly

Keeping workspaces and the overall warehouse clean and tidy is a basic yet crucial step. It should be an essential part of your organizational goals. Have team members wipe up small messes and spills as they occur. It can be helpful to create a checklist for workers to follow at the start and end of their shift, or you might designate all cleaning to a specific team. No matter your approach, clean the warehouse regularly to maintain safety and product quality.

8. Rework Your Receiving Processes

As inventory comes through your door, it should have a designated spot for the next steps. If goods are delivered and then set to the side without a plan, you’re creating inefficiencies. Put a process in place to quickly collect items upon delivery, check that they’re the proper quantity and in good condition, then move them to a labeled storage location.

9. Improve Documentation

How well are you documenting different processes throughout your warehouse? For example, your employees who handle returns should understand exactly how to handle the return, including documenting what was returned and whether an exchange was processed. A well-kept record of how your inventory moves in and out of the warehouse is necessary for keeping operations strong.

10. Consider Warehouse Management Systems

Investing in a warehouse management system (WMS) can offer your team a streamlined way to stay on top of management and organization. This software provides plenty of helpful inventory data through real-time tracking, helping you gain insights into storage methods, inventory movement and more. Many WMS options offer cloud compatibility, allowing you to access information anywhere.

Improve Warehouse Organization With Gregory Poole

Creating an organized warehouse takes considerable time and energy, but your efforts will lead to significant benefits that help your operations succeed. At Gregory Poole, we provide quality warehouse solutions that help maximize space and organize goods.

You can find dozens of products to build an organized facility, from industrial conveyors to steel shelving to robotics equipment. Browse our selection of warehouse solutions today, and find a location near you to speak with one of our helpful experts in person.