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How to Organize Your Inventory Space

Proper organization of your inventory storage space allows for faster recall, better tracking, and safer working environments. Here are some tips to make sure your warehouse space is being properly utilized.


Inventory space organizes floor plans in a facility and the way to maximize available space. Organizing warehouse inventory helps in the proper planning and management of space and inventory management. Well-organized inventory space contributes to cost-effective operation and gives optimal return to space usage. Organizing and tracking inventory is the lifeblood for businesses should start as early as possible.

Below are tips for how to organize your inventory space.

1. Development of an Organization System

Developing a proper organization system allows for better management of your inventory and extends the space required to do so. There is no fixed formula to organizing inventory as it is up to the persons in charge to develop a system that fits their preferences and needs.

An organization system should include planning enough space for inventory. A closet or a spare room can serve the purpose of inventory storage if a store is small. But if sales are good, a storage unit or dedicated warehouse may become necessary.

2. Using a Slotting Technique

A slotting technique helps to organize your inventory space by storing similar items together. Some ways to organize is by storing inventory by arranging names in alphabetical order, type, or purpose of a product. For instance, automobile component suppliers should create separate inventory locations for names like a battery zone or wheels zone.

Other parameters to decide on similarity include:

  • Physical size
  • Seasonal items
  • Selling frequency
  • Combo deals

Efficient slotting reduces time to locate items, increases efficiency, and reduces the labor cost.

3. Note and Place Most Demanded Inventory at the Front

Keep track of your most needed items, such as the best sellers in a stockroom. Place the most popular items at the front of your shelving for quick removal on request. People may know storage by heart, but walking back or needing to move items in order to get to your most popular items takes more time and delays the removal procedure. Also, storing more popular inventory in more than one box or shelf allows simultaneous access by more people.

4. Investments in the Correct Storage Units

There are different storage units such as bins, cabinets, shelving, and racks. The type of stock determines the appropriate kind, but the practical option is to set up mobile storage units from the start. Portable storage units help to maximize the space in the room between walls because they can be moved around. For instance, employees can rotate units around on their tracks to find a part of stock they are searching for without removing items kept at the front. Installing mobile units early is good because they will come in handy when inventories increase.

5. Design an Efficient Shelving Layout

Maximize space by arranging racks in long rows instead of short bursts. Physical constraints of your warehouse like drainpipes, columns, and light fixtures reduce the seemingly large space people see when empty. Arranging warehouse shelving in long rows gets the most out of the storage than several short bursts.

When it comes to organizing your storage space, you should avoid creating storage layouts in the shape of an "L" because they are difficult to navigate. The access is even more challenging if there is a need to use a forklift to access pallets within your storage system.

6. Technology Adoption

Inventory management software is an excellent tool for taking stock of inventories and managing them optimally. The right technology helps optimize warehouse operations by automating inventory control, supply chain processes, and order fulfillment. Investing in inventory management software maintains a digitally simple approach to inventory management.

The inventory management system monitors stock levels, tracks shipments, and initiates alerts about products almost running out of stock. Inventory management, for instance, helps to predict merchandise that requires shipping and when to prevent under-stocking or overstuffing.

A management system can work alongside hardware devices like a barcode scanner or POS system to record real-time purchases or sales of items. It also saves time because there is no need to do an entire manual count. These systems are perfect for entrepreneurs that are getting started in building their warehouse from scratch.

7. Label Products and Name Storage Areas

All products in a storage area should be tagged with a stock-keeping unit label and physical label after putting them at designated locations. An SKU label has a unique code with letters and numbers, and a physical sticker mentions products' names.

The unique code shows proper inventory levels, including physical inventory at hand and items out of stock by scanning to match the digital inventory list. Naming inventory locations based on stored products allows a well-defined layout that simplifies the storage and tracking of items.

Organizing inventory space is not just about stocking up. It is also essential to de-clutter old unused inventory. It can be moved for storage in self-storage units for future access when necessary. De-cluttering helps to keep the working space clean and more organized. Keep your inventory areas clear for easier access and to give you additional space for spill stations and emergency supply areas.

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