Logistical warehousing involves storing large quantities of products, often still in the process of being manufactured. This technique uses a well-defined storage area, with tools and equipment to record the company's products. For example, a warehouse can store the parts of a car that is still being completed.
Storage deals with finished products, awaiting distribution to customers. We're talking here about products that are packaged, labeled and about to be sold.
Storage can be carried out in a number of ways, either internally or externally. For efficient storage, and because movements are recurrent, requiring constant monitoring of operations, stock management tools and methods are used, along with real-time flow control.
Warehousing is generally defined by the average length of time goods are kept. In warehouses, this period is often longer, or even indefinite, depending on the production process. Warehouses must guarantee the operation of a store or company over a long period of time.
Storage, on the other hand, stores manufactured products for a relatively short period, mainly during the distribution phase, i.e., sales.
Storage requires a precise system for the movement and rotation of goods, both internally and externally.
Insofar as possible, stock is managed on a just-in-time basis. In other words, storage levels and times are shortened to reduce costs, while avoiding stock-outs. These operations require rigorous management of goods movements.
Because products are intended to be dispatched quickly to consumers, storage requires smaller quantities than warehousing. In the case of storage, this is done using the just-in-time method. In plain English, this means that the company sells off its entire stock of materials to reduce costs and lighten system control.
For warehousing, the company often applies a push-flow method, as it has considerable storage capacity. The quantities of goods to be controlled are far greater than for storage.
The push-flow method involves creating a product before the customer has formulated a specific need. The company manufactures the product in advance, anticipating the number of orders.
Each system has its own facilities and equipment.
In general, warehousing does not require a specific inventory management system, and does not involve major movements of goods. Warehousing is organized over a relatively long period.
Warehouses can be arranged according to the nature of the products to be stored. For example, some products need to be stored at room temperature, while food and pharmaceutical products need to be kept under very specific conditions. If this is the case, the warehouse must be fitted out to meet these requirements.
Storage, on the other hand, favors practicality and tracking of every movement to ensure meticulous management of stock levels. As movements are very frequent, the company must select the right type of racking to guarantee the safety of certain operations, such as handling with forklifts.
Warehousing and storage are essential for any company that has to manage products. To get the most out of them, it's crucial to optimize these spaces. This means getting the layout right, choosing the right type of shelving, and organizing traffic areas efficiently. Here are some concrete strategies to adopt.
1. Organize space for maximum efficiency
The first step is to design your warehouse or storage space to maximize efficiency.
For example, setting up dedicated areas for forklift traffic, packing and shipping contributes to a safer, more productive working environment. By using clear floor markings, you can direct the flow of work, reducing the time needed to move goods. Such organization not only helps improve safety, but also reduces operating costs.
2. Choose the right racking system
Choosing the right racking system is crucial to optimizing storage. Here are a few options to consider:
It is also possible to create a grouping of racks according to the phase of order processing. For example, you could organize your racks for receiving, packing and shipping. This approach helps you streamline the workflow and reduce the time spent on order picking.
The choice of pallets is also fundamental to warehousing. Selecting the right pallets according to the type of products to be stored helps to limit stress during handling and shipping. For example, plastic pallets may be more suitable for food products, while wooden pallets may be appropriate for heavier items.
3. Set up effective addressing
Product addressing is an essential key to storage optimization. There are two main types of addressing:
Adopting an efficient addressing system not only optimizes space, but also improves the speed and efficiency of order-picking operations.
4. Evaluate your storage system regularly
It's also essential to carry out regular audits of your storage system. These assessments help identify inefficiencies, such as bottlenecks that could slow down operations. Here are a few steps to follow when carrying out an audit:
By ensuring that the system complies with safety and efficiency standards, you minimize risks and improve overall performance.
5. Use inventory management software
Automating inventory management is essential for gaining real-time visibility and optimizing your operations. It can greatly simplify your warehousing and storage organization.
Erplain, a complete SaaS solution designed for small and medium-sized businesses, meets all your inventory and cost management needs. It helps you reduce errors, save time and anticipate stock-outs to avoid overproduction. Each order and sale automatically updates your inventory. You can also track batch numbers and expiry dates to avoid obsolete stock.
What's more, detailed data reports are provided to help you optimize your inventories, improve your cash flow and value your goods in real time. Ultimately, you'll boost your performance and identify your best customers and sales to fine-tune your sales strategy.
This type of tool is essential if you want to optimize your storage. Erplain is an intelligent solution for managing your small business in real time. Try it for free!
