Many times, when people talk about effective warehouse management as well as space management, our minds tend to visualize large warehouses that are operated using hi-tech gadgets like Hand Held Devices, RF Tags and the like.

This begs the question, can’t small warehouses and storage units cannot be handled as efficiently and without any of the above-mentioned tools? (We will assume the presence of a software as a minimum)

I think the following steps should help increase your storage efficiency with the least possible effort:

1. Arrange your storage space into zones that hold racks and racks that hold BINs. You can assume that every room is a zone (as an example).

2. Have a code for each of the BINs (make a code which will help identify the zone rack and Bin, for example, C0507 could be the 7^th Bin in the 5^th Rack in Room C)

3. Define the capacity of every BIN in the simplest possible way of how many pieces of inventory a BIN can hold. If your business runs on a single Unit of Measurement (UOM), it is the easiest, for example (I can keep 25 pieces in C0507)

4. Classify the Bins that are to be used for specific inventory. For example, if you are an apparel retailer, the rack C in the warehouse could be reserved for Men’s clothing and rack D could be for women’s.

5. Have a software where you can feed in Points 3 and 4, in other words, where to keep what and how much

6. Ensure you use the software to keep it in the right place and pick it up from the right place based on these simple rules!!!

It has been a belief that all businesses, no matter how big or small they are, can have a very effective storage system if they are committed to operating a structured supply chain even with a simple ERP providing the basic functionalities listed above.

Having helped several businesses streamline their supply chains, we have observed that such a start helps these organizations to grow their businesses that demand larger storage areas as well as more facilities and technologies and the foundation laid at the beginning holding them in good stead during their growth phase.