5 Methods of Stock Storage in Warehouses

To manage warehouse stock efficiently and effectively, companies need to understand the methods used to store stock items. That way, companies can implement the most suitable method according to their business processes.

The stock storage method is a way or system used to organize stock items in a warehouse for further processing. Stock items are classified based on their characteristics, such as type, condition, or item attributes.

The purpose of implementing stock storage methods in warehouses is to maximize warehouse volume utilization. In addition, applying storage methods provides various benefits such as making it easier to locate, transport, and identify items, as well as managing time and labor more effectively.

Here are 5 methods of stock storage in warehouses that will increase the efficiency of your company’s warehouse management:

Dedicated Storage Method

This storage method indicates that each stock item has its own designated storage location. When the stock is empty, the storage space cannot be changed or used by other products.

This method is easier to organize and remember for warehouse operators and is suitable for items with stable demand and a relatively small quantity.

Randomized Storage Method

Randomized Storage (also known as the Floating Location System) uses the principle of high flexibility. Items can be placed in any available location without a fixed allocation. The item’s position will be digitally recorded in the WMS (Warehouse Management System) to ensure easy tracking.

This method optimizes warehouse space utilization since empty locations can always be used. It is suitable for warehouses with a large number of SKUs and dynamic item movement.

Class-Based Storage Method

This storage method divides an area into several zones according to the grouping of stock items based on specific characteristics.

It can improve the efficiency of the picking process since items with high demand can be placed closer to the picking area.

Shared-Storage Method

Shared-Storage is a combination method between Dedicated and Randomized Storage. In this system, storage locations can be shared among several types of items, but still follow certain rules to prevent overlap.

This method helps balance space efficiency and storage system order while allowing flexibility in warehouse capacity when there are fluctuations in demand.

Cube per Order Index Policy Method

Cube per Order Index Policy (COI) is a storage method based on efficiency analysis, where item placement considers the ratio between item volume (cube) and demand level (order index). Items that are frequently picked but small in size are usually placed in the most easily accessible areas.

Read Also:

1. Warehouse Management System: Definition, Benefits, Features, and Integration Process

2. 5 Common Inventory Management Problems and How to Solve Them

Implement Effective Warehouse Management with Prieds Warehouse Management Software

Determining the right stock storage method in the warehouse and using Prieds Warehouse Management Software can help businesses manage their warehouses efficiently while simplifying the monitoring of warehouse activities—such as layouting storage areas, tracking stock quantities, monitoring Inbound and Outbound Inventory processes, and handling Purchase Orders. This allows companies to have a digital record trail and optimize storage space within the warehouse.

Implementing a Warehouse Management System (WMS) offers many advantages for your business. Learn more and consult with the Prieds expert team to gain the full benefits of applying a Smart Warehouse Management System to your operations.