The importance of optimizing storage space cannot be overstated, as it directly affects the efficiency of an inventory management system. In fact, one item that has almost always been in excess in most inventory storage areas is air, or more specifically, unused storage space. This can lead to increased labor costs and decreased productivity.
A typical storage unit/area has three dimensions: width, height, and depth. However, many inventory managers tend to think in two dimensions when placing goods in these areas, resulting in inefficient use of space. By utilizing all three dimensions, it is possible to increase the efficiency of workers within the inventory environment and optimize storage space.
A client contacted us with a problem regarding their parts and accessories inventories, which were contained in three separate areas. They wanted to combine all the stored goods into one primary storage area to improve accessibility and reduce unauthorized access. This primary storage area had five rows of storage racks that consisted of 10 units each measuring 36 inches wide by 24 inches deep by 120 inches in height.
Over a 10-day period, we removed one unit from four of the rows to reduce the total number of storage units and established the spacing between shelves within these units. We also used compartmentalized storage containers where appropriate to utilize the entire depth of each shelf and assigned bin locations to each item. This ensured that personnel could efficiently stock and retrieve goods.
The project resulted in a significant reduction in the number of storage units, from 50 to 46, and improved accessibility for personnel. The client was amazed at how effectively we were able to condense the storage space, and it is clear that this approach can have a substantial impact on inventory management.
A well-designed storage system can significantly reduce labor costs and improve overall warehouse efficiency.
