It is beyond essential that warehouse personnel know exactly where products are so that they can be picked efficiently. Obviously, you should not locate the most popular products in extreme locations and the least popular in spaces with the best access. It should be the other way around.
To set up the inventory it is probably best to be able to quickly visualize where each and every product is at a glance.
(Courtesy: fivequidexpert at flickr.com)
Step One
Take a good size sheet of paper and create a floor plan of the warehouse on it.
Step Two
Take a pad of 3M post’ems and write a name for each section of the warehouse, then place the stickers on the appropriate part of the floor plan.
Step Three
Break down your inventory into categories, give each category a name, write the name down for each category on one slip of 3M post’ems, then figure out the best locations to store each categories products on your floor plan and slap the appropriate sticker on to the appropriate place on the floor plan. Locate like products in the same space.
Step Four
Select the appropriate shelving on which you will store the products. Keep in mind that you will be stacking the products vertically instead of horizontally. This saves on space.
Step Five
Once you have decided where each product will be stored, create signs for the products. Each sign will be put on the appropriate shelf. You can post the signs and create storage space by product name, product number, or product category. In your plan make certain that each product is properly labeled so that you can easily track and store each product. For example, you can identify your inventory by SKU number, type of product and a description. This way whoever is picking knows exactly what he is picking.
Step Six
Make certain that all the identification information is on the box that contains the products. This way pickers will not have to open up boxes to find what they need and boxes can remain closed.
Step Seven
Develop and write down a policy on how employees are to process incoming inventory. Make certain that there is a plan on how to keep aisles clear.
Step Eight
Develop and then write down a process for shipping inventory. Include who is responsible for inputting invoices into the inventory tracking system, and make certain that as products are picked they are deducted from inventory levels. Also identify who pulls inventory from the shelves and how the product is shipped to the customer.
Step Nine
Evaluate the layout. Once everything has been arranged and the warehouse gets into operation, take a regular look at the layout of each department and each part of the inventory. If you find that the shelves you selected aren’t working or there is a problem with a particular part of the inventory process, decide on changes you can make that will improve the inventory arrangement and enhance the processing of orders.