Keeping the rack warehouse organized is essential for warehouse management, so warehouse managers must master the basics of warehouse management. Many people are dazzled by the sheer size of the warehouse. Learn nine practical tips for rack warehouse management to improve inventory control. Here are the basics of warehouse management to help you stay on top of warehouse operations. We also provide some warehouse inventory management tips to further improve your warehouse operation efficiency. These warehouse rack management methods will simplify inventory control and make the most of your inventory management system.
1. Planning rack warehouse space
Every inch of the warehouse needs to be planned to maximize the use of storage space. It is one of the methods of rack warehouse management that can be implemented without spending too much. The space must be organized in a way that allows for quick and smooth handling of goods. There must be enough space for forklifts and lifts to move. If the bins are properly planned and labeled, it will help avoid confusion and inventory in inappropriate places.
2. Forecast inventory purchases and release schedules
Every business has its own seasonal needs. The basics of warehouse management explain that there is no point in stockpiling inventory all year round unless there is regular demand. Inventory levels should be maintained at an optimal level, ideally 1.5 times the average usage, to avoid blocking working capital. Optimal inventory holdings will reduce storage costs. As part of the rack warehouse management process, forecasting inventory needs based on historical trends will also help improve ways to reduce costs.
3. Avoid mixing up SKUs
A common mistake in the rack warehouse management process is to mix multiple SKUs into one box to save space. Although this makes sense for SKUs of the same type and average size, it does not always reap the expected benefits. Tracking, finding, and loading/unloading SKUs bundled in a single container takes a certain amount of time. However, if it may be necessary, a better way to put multiple SKUs in the same carton is to divide the carton into convenient sections for better access.
4. Use the location of the bin to find products quickly
Your rack warehouse management best practices must include the wise use of location to simplify product searches within the warehouse. The bin location field helps to track showroom and warehouse areas at once. The bin location also helps to better plan the warehouse layout. Placing fast-moving inventory nearby will reduce loading and unloading time. Warehouse aisles can also be better paved to ensure quick access to warehouse locations.
5. Inventory tracking should be supported by technology
Automation can save time not only in air-conditioned offices, but also in the process of goods entering and leaving the rack warehouse. Barcode and RFID-enabled data collection and inventory tracking are ideal for effective warehouse operation management. To save time and improve efficiency, manual interference in warehouse operations should be minimized. Inventory tracking with technology support will prove to be beneficial for businesses that handle thousands of SKUs across multiple warehouse locations.
6. Strategic classification of SKU pickup locations
Perhaps, Amazon is credited with finding a unique and brilliant answer on how to handle warehouse inventory for global e-commerce stores. It has an effective way to classify and store goods in its rack warehouses, which does not place similar goods near each other to prevent the warehouse from manually selecting slightly different variations that customers may not have ordered. In addition, the best-selling items are located in almost every aisle of the warehouse for quick pickup and shipment.
7. Cross-docking saves space to a great extent
Cross-docking is a popular supply chain management process designed to reduce the rack storage time of inventory. It helps in the quick transportation of goods delivered from the warehouse to the outbound carriers who take the inventory to the distribution center or retail center. The rack warehouse layout must be set up in a way that facilitates cross docking.
8. Establish safety standards
Warehouses are feared for their injury rates. Most accidents in rack warehouses occur due to lack of employee training and awareness. Heavy equipment such as forklifts, etc. must be used by employees who have prior training and experience. In addition, the rack warehouse must also be marked with safety specifications, including safe distances from hazardous areas, self-protection devices, etc.
9. Employee Training and Onboarding
Warehouse management systems cannot reach their full potential because users (mainly the laborers who use the system) are not aware of the current features used for inventory control and better management of the rack warehouse. Regular training and onboarding programs will greatly reduce the resistance that may affect the efficiency of warehouse management.
These rack warehouse management tips can bring a huge breakthrough to any type of warehouse. From public warehouses to private warehouses and even climate-controlled warehouses, their efficiency can be improved by implementing these warehouse management tips.
Post time: Mar-07-2025