18 Warehouse Organization Ideas To Boost Productivity and Morale

11/16/22, 12:35 PM 18 Warehouse Organization Ideas to Boost Productivity and Morale
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18 Warehouse Organization Ideas

to Boost Productivity and Morale
by Christina Dube 
WAREHOUSE ORGANIZATION,
WAREHOUSE TIPS
Cleaning Up Your Disorganized

Warehouse
Organization is key to becoming/sustaining a successful business. The
warehouse should be considered the foundation to your business. If
you’re currently operating a disorganized warehouse and need some
help prioritizing your next steps, you’ve come to the right place. Our
suggestion is to start by making small changes that will make a big
impact with an immediate return. So how do you get started on your
warehouse organization journey?
There are several warehouse organization ideas to review and

consider, but they fall into three major categories. In no particular
order:
- Warehouse Layout
- Inventory Organization/Management
- Clean Workspaces
Consider this a checklist to help you navigate the organization process.

Take one suggestion at a time and review how things are currently
working. Is there room for improvement? An opportunity to tame the
disorganization of your warehouse? Let’s take a look.
Warehouse Layout
It can be daunting to even consider an overhaul on your warehouse
layout. Organizing your space doesn’t have to start with a clean slate. It
simply means you can optimize some of your current processes to help
you and your staff complete day to day tasks more efficiently.

1. Organize Floor Plan for Optimum Process
Flow
If you’re in the design phase of your warehouse, you’re in luck, because
you can set things straight from the start. I know I said organization
doesn’t have to start with an overhaul, and it doesn’t. This can be a
long-term goal if you find things don’t flow in your warehouse in the
best way for your business.

Now, take a step back and consider your current warehouse layout. An
organized workspace should provide a safe environment for your
employees and be highly efficient. The flow should be set up in the
order of operations. For example, inventory comes in from Receiving
and moves on to Storage either in one or multiple zones based on
storage method. Once orders have been picked, they are packaged and
sent to shipping and out the door.

Pro tip: get a pen and draw a line from where inventory comes into
your facility, how it’s handled and how it leaves. You’re hoping for a
relatively straight line.

Poll your staff who work in the space on a daily basis. Are there small
corners of the warehouse which can be adjusted slightly to support
their efforts? Enable your staff to speak up during this process
improvement. Keeping your employees safe and happy is highly

beneficial to their productivity and your overall success.

2. Stay Organized with Labels and Signage
This is an easy tip which you can implement immediately. Labeling
inventory and work zones throughout your warehouse will ensure
organization and facility flow is maintained long term. Once you’ve
established your warehouse layout, labels will ensure employees know
where to find things and/or where they belong. This can be especially
beneficial for new employees or in facilities that utilize temp labor
often.

Don’t stop at your inventory and work zones. Consider adding signage
to any hazards or ceiling restrictions to ensure employee safety.
Replace labels and signage regularly, as needed, to reduce errors or
misplacing valuable inventory.

3. Provide Maps
Help your employees navigate the warehouse by providing maps. While
labels and signage clearly communicate what they need to know, maps
can be especially beneficial for new or seasonal employees with less
experience in the facility. The faster people get to where they need to
go, the quicker they get the job done.

4. Review Storage Capacity
Now that everything has a home and is clearly labeled, it’s time to
review your storage capacity, which is the maximum amount
something can hold. Using simple math, multiply height x width x depth
= storage capacity, in cubic feet.
If you’ve opted for traditional rack and shelving in your warehouse, how
are the shelves spaced out? Are they evenly spaced, leaving room at the
top of your products? If so, you’re paying to store air! Learn more about
how you can maximize your storage capacity by implementing
automated storage methods.
Inventory Management
Inventory management accounts for just about everything physically in
your warehouse. Without a system in place to keep track of your assets,
it can be difficult for your employees to do their jobs. Categorizing
inventory and using proper storage methods maximizes your existing
facility and frees up previously wasted space to increase capacity and
improve efficiencies.

5. Classify Inventory
Start by classifying your inventory to ensure you’re organizing even
your slowest moving items accordingly. Profiling your stock keeping
units or SKUs should be supported by data. Take inventory of what is
currently in your warehouse (size, shape, quantity) and how often it
moves or frequency of picking. This will help you organize your
inventory into categories: A, B, C and D also known as your fast (A),
medium (B), slow (C) and very slow (D) movers. Once this is charted (see
below), cross reference your documented SKU velocity with the amount
of time it takes to pick those items, this will tell you how much it costs
to pick your inventory.

If you apply the Pareto Principle (80/20 rule) here, you could imagine it
makes the most sense to focus on the 20% of your inventory being
picked 80% of the time. If that’s the case, you’d be missing the
improvement opportunity from the remaining 80% of your inventory
which sits stagnant more often than not. Take a closer look at SKU
profiling and classifying your inventory.

6. Compartmentalize Inventory with Totes,
Bins and Dividers
Storage devices make me happy because they promote organization of
even the smallest items. Whether you need to store nuts and bolts or
pre-assembled kits, I can guarantee there is a tote or bin to keep your
items in order. Add labels and you just earned yourself a gold star!
There are so many companies selling totes…for a living. Crazy, right?
Our expertise is in automated storage and retrieval systems (ASRS) but
we’ve expanded into the realm of storage boxes designed specifically
for our technologies. Read more about totes, bins and dividers and why
they are important.

7. Implement a Slotting Strategy
I don’t recommend trying to slot your inventory until after you’ve

classified, compartmentalized and labeled it. Slotting can’t be done
without data. To increase employee picking productivity, slot your
inventory first by velocity. Since you’ve already classified your inventory,
you know what your fast and medium movers (A and B movers) are
versus your slow to very slow movers (C and D movers). Slot your fast
and medium movers in the area or zone with the easiest access. Your
slow and very slow movers can find their place further away from the
shipping area for example without suffering a dip in productivity. Your
employees will thank you if you reduce their walking distances from
fast and medium movers to the shipping zone.

Next, slot your SKUs by zone or technology. You’ll need the information
about inventory size, shape and weight here. Sometimes there are
limitations based on what you need to store and what storage methods
you’re using. Read more about slotting inventory by zone/technology.

8. Implement an Efficient Receiving Process
Do you have boxes piling up next to the receiving door? This screams
disorganized warehouse to me! Review your process for receiving
inventory. The inventory coming in the door is just as important as the
inventory you’re shipping out. Designate an employee to manage
receiving as they will be your quality gate. Did you receive the correct
quantity and was the shipment in good condition? They should process
the shipment accordingly and immediately store the items in your
perfectly labeled storage systems.

9. Document Your Returns Handling
Procedures
In addition to your receiving process, don’t forget to factor in the

returns handling process. While this might be covered with receiving,
outline all of the steps for employees to ensure returns are taken care
of appropriately. If returns go missing, this is money out of your pocket.
Keep your warehouse efficient with a documented process. Learn more
about returns handling procedures.

10. Automate Storage for Maximum

Capacity (Assess Storage Methods)
Tell me about your warehouse. Are you using traditional racks and
shelving…automation…or a combination of the two? This is a
judgement free zone. I understand there are benefits and limitations to
all storage methods. Obviously, I’m a little biased.

There are plenty of storage methods to choose from. It’s important to
talk to an expert to determine if there’s opportunity to improve what
you’re already working with. I will tell you, ASRS will protect your
inventory from damage and theft. Utilizing the vertical height in your
facility, ASRS maximizes storage capacity in 85% less floor space.
Operating on the goods-to-person principle, ASRS delivers items
directly to an operator at an ergonomic workstation with the touch of a
button. Read more on the different types of ASRS technologies on the
market.

11. Lean Your Inventory
Lean your inventory to align with just in time (JIT) practices. When there
is less inventory on hand, there is less to organize. Only keep what is
essential to prevent overstocking inventory. Of course, it can be helpful
to have some safety stock on hand but use data to determine the
appropriate quantities. This will keep your warehouse operating at high

efficiency and deliver the service your customers expect.

12. Organize Safety Stock
Don’t forget to leave room for safety stock. This is extra inventory you
have on hand in buffer storage to avoid shortages. To ensure you
always have adequate inventory levels to accommodate unpredictable
spikes, designate a location for this safety stock. This reduces the
likelihood of inventory being misplaced.

13. Implement Cycle Counting
No one likes big year end physical inventory. Keep track of your
inventory regularly with cycle counting. Whether you cycle count
weekly, monthly or even quarterly, if you keep track of your inventory
throughout the year you can eliminate the need for a costly year end
inventory count. This helps you maintain accurate inventory levels and
supports your organization practices on a continuous basis.

14. Adopt a Warehouse Management System
Warehouse Management Systems (WMS) provide to support many of
these warehouse organization ideas. With data from your WMS, you
can properly classify and slot inventory, determine proper storage
methods, track inventory movement and more. The sooner you
implement a WMS the more access you’ll have to this information going
forward and historically over time which optimizes the functionality of
your warehouse.

Maintaining an organized warehouse requires visibility into real-time
inventory tracking, which a WMS provides. From inventory levels and
locations to SKU movement and operator statistics, a WMS can provide

insight to support your business objectives.
Clean Workspaces
Don’t let all of your hard work organizing your warehouse go to waste
by taking the “set it and forget it” approach. A clean workspace
prevents damage to inventory and increases productivity. It keeps your
employees healthy too. Routine cleaning procedures will ensure your
warehouse operates at maximum efficiency.

15. Clean Regularly
Whether you create a checklist for your employees to execute at the
end of their shift, for example, sweeping, cleaning work surfaces, etc. or
you hire a service to clean your facility, don’t forget this step. Keeping
the warehouse clean from dust and dirt or larger hazards such as spills
ensures employee safety. This will also prevent damage to your
inventory or potential loss of product.
16. Train Staff to Maintain Organization

Once you’ve updated your disorganized warehouse to a new and
improved facility, train your staff to maintain it. Set expectations and
regularly check in with your employees to ensure the new layout is
sustainable. The labels, signage and maps you’ve created will support
this process.

17. Perform Regular Maintenance

It’s in your best interest to adhere to the manufacturers maintenance
schedules they recommend. Make the maintenance of your equipment
a priority. It keeps your facility in working order reducing or eliminating
unplanned downtime. When your equipment works properly, your
employees can remain productive. Often, purchasing the extended
warranty for maintenance on your equipment is worth the investment.
18. Keep Aisles clear for Moving Vehicles
Even an organized warehouse has a lot of moving parts. Keep aisles

free and clear for moving vehicles such as forklifts to keep employees
and equipment safe. Optimize aisle space for forklifts to travel easily
without giving them too much room, wasting valuable floor space.
Reducing clutter also allows for easy access to stored SKUs.
In Review...
This is a lot to review, so let me remind you to start small. Pick one or
two things which you can implement immediately for the quickest
return. The most important thing to keep in mind after organizing your
warehouse is to review your processes and procedures regularly. Did
your changes have a positive impact? Are your employees more
efficient? When it comes to facility flow or labels and signage, small
adjustments can make a world of a difference. Organizing your
warehouse today will set you up for an efficient and successful
business today and in the future!


Zoe Campos
5/19/2020, 12:48:31 PM
I definitely agree with the part that every warehouse owner should
label their products and work zones to ensure that proper organization
and facility flow will take place. It reminded me of my friend who
suffered a lot from having a disorganized inventory and is still trying to
recover from his losses. Aside from improving their system, it might
also be better for him to install good warehouse doors for improved
security.
aishwarya nadhan
12/21/2021, 8:19:24 AM
Hey Chelsea, This is a wonderful article, Given so much info in it, This
type of article keeps the users' interest in the website, keep on sharing
more ... good luck.
warehouse Supervisor job role
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11/16/22, 12:35 PM 18 Warehouse Organization Ideas to Boost Productivity and Morale

Filter by Industry Topic

Most Popular Posts

Customer Knowledge Center

18 Warehouse Organization Ideas

Cleaning Up Your Disorganized

There are several warehouse organization ideas to review and

Consider this a checklist to help you navigate the organization process.

improvement. Keeping your employees safe and happy is highly

I don’t recommend trying to slot your inventory until after you’ve

In addition to your receiving process, don’t forget to factor in the

10. Automate Storage for Maximum

appropriate quantities. This will keep your warehouse operating at high

locations to SKU movement and operator statistics, a WMS can provide

16. Train Staff to Maintain Organization

17. Perform Regular Maintenance

18. Keep Aisles clear for Moving Vehicles

Even an organized warehouse has a lot of moving parts. Keep aisles

warehouse Supervisor job role

8 Warehouse Automation Trends: 2023 Outlook

3 Strategies to Recession-Proof Your Warehouse in 2023

55 Warehouse and Distribution Best Practices: The

Great content just like this... right to your

8 Warehouse Automation Trends: 2023 Outlook

Managing Inventory Amid Supply Chain Disruption

3 Strategies to Recession-Proof Your Warehouse in 2023

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