The warehouse storage system has been a backbone for most industries around the globe because of the requirements of keeping inventory for smooth business operations. Warehouse storage system make your businesses more flexible and can keep massive costs off the books. Go down can be multiplied in one city or area depending upon the giant business processes to keep shipping time as much compressed as it can be.
Core Functions of the Warehouse
Highlighting the core functions of the subject matters are as follows:
- As the outsourcing concept in the 21st century is vital for industries. So, outsourcing the warehouse can give extra space for product development or research and development.
- The primary aim of having expensive warehouse is to store and shift the parts from one place to another more conveniently.
- Don’t forget to highlight the point that it also saves the inventory from being aged keeping the cost factors low. It is a must-have part for major firms in order to meet up their demands in the market.
- The layout of the stock house will bring the production process under the limelight and improves deficiencies in workflows.
- Granary can assist you to save you from exchange rate losses as well if you have to import specific items for your final products.
- The types of warehouses vary across the firms as some companies are okayed with only four walls covered with a proper top, whilst some businesses do need advanced systems in their warehouse to keep an appropriate level of excellent quality of stocks. It also minimizes the risk of inventory or damage from fire when warehouses are off-site.
- Go downs also give a very supportive hand to businesses in securing finances from financial institutions. Normally banks keep inventories of the companies as loan collateral and release payments to support the company’s financial cycle.
- In case of bad economic performance and diminishing demands, the final goods can be secured in granaries. When prices and demands are stable in good conditions then inventory can be sold to better profitability of the firm.
Advanced Warehouse Management
As we are living in a world where every aspect of life is getting advanced usually with the aid of technologies, the same way stock houses are also being managed by using software to improve efficiency. ERP software like WMS etc., are playing a crucial role in business operations.
Therefore, the companies are spending massive amounts to implement the system to become at par in the industry. More systems mean more information and streamlined business processes leading to enhanced profits figures. ERP implementations also give the big advantage of the consolidation of purchasing price and financial making easy-to-comprehend data analytics. Big giants in the market like Amazon, eBay, and automotive brands are using robots under the roof to make depots’ processes error-free to achieve maximum productivity.
Efficient fulfillment is normally a result of modern software. Stockpile management can be taken care of using radio frequency identification (RFID) tags and scanners, which will aid you in tracking the object in real-time and scanning it once it is a part of going down. Task delegation is also very convenient using the latest system.
Types of Warehouses
The types of warehouses vary across the firms as some companies are okayed with only four walls covered with a proper top, whilst some businesses do need advanced systems in their warehouse to keep an appropriate level of excellent quality of stocks. So now a big question is how should the management come up with a type of stock house mandatory for the company’s survival.
I think that the answers are totally dependable on the technological advancements in a specific region and can’t forget about the competition that one firm has to face in order to operate among its competitors.
Every type of warehouse storage system has some positive and negative areas to be observed with great care. So, whenever you want to go for a warehouse storage system, design it as per your layout. Here are the types of warehouse storage systems that you must know:
1. Mobile Shelving
As the name suggests, mobile shelving is a mobile warehouse rack system. It contains higher storage capabilities (when compared to static shelves). A track is attached at the end of any rack in this storage system.
Mobile shelving is composed of conventional components which consist of decks and bracings. It does include a chassis which makes the system move in a lateral or sliding motion.
You can keep many items in less space. Because of this system, cabinets and shelves are placed on rails and there are no fixed aisles. Even when you have less space, you can have better access to the inventory.
Mobile shelving is designed in level tracks, sometimes that could be manual or mechanized. This warehouse type has a locking system that can be used to monitor or control when you have to access the inventory.
2. Static Shelving
This storage system is designed whose structure stays put. It takes a consistent place within the warehouse facility.
Static shelving is a storage system of the warehouse where the items stay in one place. This storage system is used when the inventory is lightweight. When an inventory requires continuous replenishment then this warehouse storage system is installed.
This system is not compatible with forklifts; therefore, you require manual assistance to pick, place, and organize the inventory. If your inventory weight is large then go for some other higher elevation configurations.
3. Multi-Tier Racking
The multi-tier racking system is a storage system that is basically used to utilize vertical space. When you want to store a large stock of products with small unit sizes then multi-tier racking is the best choice.
You can add or remove tiers according to your current storage requirement. There is no warehouse storage system that has one size fits all, so multi-tier racking is there to help you with flexibility.
Organize each tier strategically to utilize the warehouse racking to its fullest. Also, pay attention to the height and weight guidelines to avoid any incidents.
4. Pallet Racking
Pallet racking is considered the busiest and largest warehouse storage system. Pallet racking systems come in different materials like wood, metal, and plastic. The items in the boxes are lifted upwards using forklifts, depending on the height of the racking.
The pallet racking system is further divided into sub-categories which are as follows:
- Selective pallet racking
- Push-back racking
- Drive-in racking
- Double-deep racking
- Carton-flow racking
- Teardrop pallet racking
- High-bay racking
- Drive-through racking
- Coil racking
- Pallet live racking
- Shuttle racking
- Narrow aisle racking
5. Mezzanine Flooring
This design can be seen in many warehouses as it is an additional wall just about half the height of the roof. In Italy Mezzo means half, so this concept is maximum space to keep the goods in a secure environment.
As this article has mentioned various types of warehouse storage systems, let’s highlight the storing facility of frozen items as globally these kinds of items operate at a massive level and contribute significantly towards the needs of the consumers and the economy of the country. They are specially designed facilities to keep the stuff in a controlled environment for hours.
The shelves are rust-free and are designed vertically for air circulation to keep the items in the best health. So, the following kinds of products are needed to be stored in cold storage racking areas
- Perishable food items
- Pharmaceuticals
- Some specific kinds of chemical
The complete supply chain of these kinds of items needs more expertise in proper handling in delivering products from A to Z to maintain the environment. We have mentioned the types of warehouse systems, however, most of the firms select non-automated cooling storage systems because it saves a lot of cost leading to good revenue amounts in the short run.
Albeit, manually handling these complex operations may lead to some serious health risks. So proper training should be available for the staff to properly execute logistics using this technology.
6. Wire Partitions
Wire partition storage system is built or installed strategically so that the wire cages can be torn down quickly when needed.
If you want more security for the items then you can install a wire partition storage system. Some companies built the manager’s office using wire partitions for the temporary offices.
For user convenience, we have tried to cover multiple areas pertaining to warehouse storage and management but the literature regarding the compliance policy of the warehouse should be a part of the document.
Some Aspects of Warehousing Storage Systems for Different Storage Types
The Automatic Storage System
The automatic storage system uses mechanical arm devices to shelf everything on the rack and the quantity of the product is not a tedious task.
| Positive | Negative |
| Time-saving as it can pick any specific item from thousands of shelves keeping operational effectiveness more streamlined. A human being can take more time in this area. | The malfunction of the device can raise eyebrows for the manager as it will not be able to access the goods. |
Pallet Racking
The pallet racking system features multiple levels of shelves that are easily reachable by forklifts.
| Positive | Negative |
| The good thing about this type is it is cost effective and stocks can be placed in packets, not depending on the automatic or the modern system in case of failure. Vault staff can locate and pick up any item using the ladder or the forklift. | Requires a large amount of channel area whereas the storage density can be low. The result will be a poor utilization of space. Tight clearance between the pallets themselves may trigger collapse by the forklift driver so industry standards in this regard should be followed. |
Outdoor Pallet Racking Warehouse
Uncovered
In some scenarios, organizations are not willing to keep mammoth warehouse as a result of their processes. So, they make a cost-effective strategy and opt for outdoor pallet racking to keep unused stock outside.
So as a reader of this article, the first question that should strike you should be whether it is safe to do that. The answer should be straight too, YES! Quite often businesses have to get rid of stock very soon so keeping it outside for a shorter period is a wise action.
The fact is that we are living in a very competitive world so the companies’ strategic decision is equally important as oxygen is an essential human being. So strategic financial planning is a must-have component of vault/inventory management.
Covered
If you are working in an industry, where the shelter for your ready goods is vital then partially covered pallet racking can be ticked. This can save you ready to deliver good security from weather conditions and can create a barrier to avoid good losses.
So as a business owner, how will this solution be adding value to me? In another way, let’s move further and see the advantages of this process.
Cost-Effective
The outdoor pallet racking system is cost-effective as it does not require so many technicalities for the setup. Flexible in keeping stocks for a good amount of time
Adaptability
You will always have the option to change the size of the racks as per your needs in the business. It can be changed to various shapes making it more user-friendly.
Environment Friendly
The system is also environmentally friendly as you can recycle it and compel energy consumption.
Durable Material
The material is quite long-lasting as it is designed to face harsh conditions as well. The better the material, the better the life of the unused product in the storage area.
Block Stacking
This is the most convenient method of storing the product in the warehouse. Items normally pile up on one another in blocks and large inventory can be stored.
| Positive | Negative |
| It saves a good cost for the company as it does not involve any software system to be operated. All are manually operated and require staff for the management | It can take a lot of time if the needed items are stored at the bottom of the blocks because one block can contain hundreds of items. So, the LIFO method application can be tedious. |
Pallet Flow
This category uses a conveyor belt to transport goods from one place to another, especially heavier boxes. It is also the best choice, especially for the cargo, automotive, and airline industries.
| Positive | Negative |
| The best thing about this method is the flexibility that is enjoyed by the pickers as he/she will be standing at one place to unload the pallets and place them in the warehouse. | As everything is in order so if somebody has to pick some box from the middle, then it would be a burdensome task. |
Push-Back Storage
This system is workable within the pallet racking framework; however, it operates similarly to the vending machine. This product keeps on moving forward when the first one is removed from the shelves. This is on a huge level and needs a forklift to operate. The stock in the middle is not every time accessible so consider this a negative point.
How to Optimize the Warehouse Storage System?
In today’s fast-paced business environment, optimizing warehouse storage systems has become increasingly important. A well-designed storage system can help reduce operating costs, increase productivity, and improve customer satisfaction.
- Analyze and Evaluate the Current Storage System
The first step towards optimizing a warehouse storage system is to analyze and evaluate the current system. This includes assessing the current inventory, the number of items in storage, the frequency of use, and the current storage methods. This will help identify areas that need improvement and provide a basis for making changes.
- Plan and Design An Efficient Storage System
The second step is to plan and design an efficient storage system. This involves determining the appropriate storage methods, such as pallet racking, shelving, and mezzanine storage. The design should be tailored to the specific needs of the business, taking into consideration the size and weight of items to be stored, as well as the frequency of use.
- Optimize Space Utilization
Optimizing space utilization is another important factor in warehouse storage system optimization. This involves maximizing the use of vertical space through the use of high-density storage systems, such as pallet racking and mezzanine storage. This can help increase storage capacity without the need for additional floor space.
- Implement Efficient Material Handling Practices
Implementing efficient material handling practices is also critical to optimizing warehouse storage systems. This includes the use of automated storage and retrieval systems, conveyor systems, and forklifts. These systems can help streamline the movement of goods within the warehouse, reduce handling time, and improve overall efficiency.
- Utilize Inventory Management Software
Utilizing inventory management software can also help optimize warehouse storage systems. This software can provide real-time inventory tracking, facilitate order fulfillment, and provide data on inventory levels and demand. This information can help businesses make informed decisions about storage, replenishment, and order.
- Regularly Assess and Review Storage System
Finally, it is important to regularly assess and review the warehouse storage system to ensure that it remains optimized. This includes regularly monitoring inventory levels, reviewing storage methods, and making adjustments as needed.
Warehousing Principle and Distribution
For the financial analysis of any stock-related industry, inventory turnover is mandatory to study for future financial predictions. Pick, pack and ship processing time should not be ignored. Error-free logistics functioning ensures 3PL companies make prompt deliveries and a constructive work environment.
An ample discussion has been done covering multiple aspects of the warehouse but one question is scratching the head of every decision maker and that is warehousing logistics.
The response to this query is quite straightforward: logistics is a planning process ordering a specific number of units of raw material/products to keep the business process. Warehousing can be used in concurrence with the remaining stock and logistics
As we have discussed above the use of ERP implementations, albeit a few tough questions management has to tackle in selecting ERP solutions for the stock room management as bad implementation can seriously shrink the complete sales of the company leading to a lower share price. Now let’s discuss each one.
What Is the Most Essential Thing You Want to Track?
It is simple from where your product is coming from. As a retailer, you are interested in knowing the color, packing, and quantity on hand but the customer is concerned about the whole process from A to Z including the price as well.
Is There Any Limitation on SKU or Product Size That Can Be Stored?
The efficient system should be smart enough in recording every kind of product no matter how much space it is occupying. It should exponentially grow with your business. For companies in the growing phase, WMS should be the best option as it might not be able to handle a large number of inventories
Does It Integrate with Chosen Shipping Providers?
Yes, highly important as VMS should be integrated with your shipping. Normally if we have a robot system managing the stockrooms, then robots already possess real-time information about the stock level. Top leadership needs to be crystal clear on this.
Warehouse Best Practices
Warehouse compliance includes the warehouse safety guidelines that should be implemented without an iota of doubt. Safety processes might include manuals regarding material management for hazardous materials. Even for approving the location for the warehouse, the environment of the outskirts for the stocks needs to be studied beforehand. For all industries, warehouses are familiar with Occupational Safety and Health Administration (OSHA) which ensures worker health safety in the go downs. By following all the regulations of the governing bodies, the firm can market itself in a very good way.
Final Words
warehouse storage systems are mandatory if you are selling your physical product in any industry and any market of the world. Yes, completely true that more advanced technologies need to be implemented in the warehouses to generate good profits from the business. No matter what type of warehouse storage system you are working with, efficient business warehouse workflow simply means outstanding efficiency.