Smart warehouse storage systems manage their inventory using various technologies, such as robots, retrieval systems, and advanced AI technology.

According to a study by Statista, the warehouse robotics market generated revenue to the value of 7.9 billion US dollars worldwide in 2021.

And that’s not the end.

It’s expected to grow in the coming years and will reach 51 billion U.S. dollars by 2030.

So don’t you think it’s high time to replace your conventional management system to increase your efficiency, reduce operational costs, improve accuracy, and avoid security risks?

Craving to know more about the best tips on how smart warehouse storage can revolutionize your inventory management game?

Let’s dive deep into the details to learn more about smart warehouse storage and the practical ways to streamline your workflow efficiently.

Practical Tips For Better Inventory Management

Smart warehouse storage is a way to automate your workflow and help you make more informed supply chain decisions and better logistics costs.

Here are a few strategies and tips to improve your inventory management system:

Optimize Warehouse Layout 

You can organize your warehouse using various methods, like:

• Vertical module: Ideal for crowded warehouses. For example, when you want to manage a large range of plants in a limited space, you can use customized nursery racks to efficiently organize seedlings, potted plants, or other gardening supplies. 
• Modular shelving: Best for fluctuating inventory levels, especially as your business grows or changes.
• Zone-based layouts: Divide your warehouse into functional zones like receiving, packing, and shipping to minimize employee travel time.

Tip: Place high-demand products near the shipping area and keep hazardous items in isolation for safety.

Streamlined Traffic Flow

Organizing your warehouse mindfully increases productivity, like:

• Adequate aisle width helps you move freely without any obstruction, and safety floor markings separate equipment and pedestrian zones to reduce accidents.
• Implementing one-way or serpentine pathways (zigzag) reduces confusion and streamlines movement in high-traffic areas.
• Just-in-time inventory management frees up storage space and avoids cluttering pathways.

Technology-Driven Solutions

For better inventory management, warehouses rely on several technologies, including:

• Warehouse Management Software (WMS) is software that helps you track stock levels in real time and manage inventory movements like receiving, picking, packing, shipping, etc. By integrating with IoT and other technologies, records are updated instantly and provide accurate data for better inventory management.
• Barcode and RFID tags quickly scan items and automatically update your inventory. Barcodes are affordable and easy to use, while RFID tags are expensive but best for moving or airtight items. The best thing is it significantly reduces the chances of incorrect labeling, inaccurate fulfillment, delayed shipments, and unauthorized stock movement.

Regular Cycle Counting and Audits

• ABC analysis: Categorizing your inventory into A, B, and C according to their importance helps to make better decisions about which item should be restocked first. Plus, it helps you save money by reducing excess stock of unimportant items.
• Regular reconciliation helps to minimize discrepancies by indicating errors, miscalculations, and missing information.

Stock Rotation Methods

• FIFO: You can use the First In, First Out method for perishable items like food, medicine, and older inventory. Selling older inventory first minimizes the waste and helps to sort things that can become obsolete or decrease in value.
• LIFO: Last in, First Out is beneficial to reduce taxes in situations when prices are constantly rising or to maintain long shelf life inventory items.

Safety Stock and Demand Forecasting

• Balancing safety stock to prevent shortages without overstocking is a crucial tip for managing your warehouse inventory needs properly. It protects you against sudden demand spikes, prevents inconvenience in supply in weather-related shipping delays, and helps to avoid the buying of items at higher prices.
• Leveraging historical data for accurate demand prediction is another cornerstone that helps to improve customer satisfaction. AI-powered tools analyze sales records, market trends, customer insights, weather conditions, and competitors’ pricing to forecast your needs accurately.

Enhance Productivity with Automation

• Robotic and AI Integration: For better supply chain management, AI and robotics can play a crucial role. With minimal human intervention, repetitive tasks can be done quickly with the help of software, robots, and AI-driven systems. 
• Smart Picking Strategies: By employing strategies like pick-to-light systems, voice-directed picking, robotic picking systems, vision picking, smart weight scales, etc., you can improve your warehouse inventory easily.

Training and Safety for Long-Term Success

• Employ Skill Development: For a sustainable and injury-free warehouse environment, it is vital to invest in employee skill development. For a better workplace, your employees should be well-trained to handle warehouse machinery safely. Educate your employees on proper inventory tracking, using WMS and barcode scanners properly, and train them to perform FIFO and LIFO optimally in compliance with your business.
• Building a Safety First Culture: Prioritize safety in routine operations, allocate a budget for proper safety measures, post safety signage in the warehouse, conduct safety training sessions, and perform safety drills. Stay updated with industry safety standards and conduct safety audits on a regular basis.

Wrap-up Thoughts

Delays in even a small shipping order can result in lost sales opportunities. That’s why it’s important to manage your warehouse inventory with smart and automated strategies to enhance predictive measurement of customer demands, prevent stockouts, and reduce manual labor costs and human error.

Moreover, mobile shelving systems, pallet racking, high-rise storage systems, making use of vertical space, and real-time tracking via WMS can dramatically change your warehouse inventory management.

But it’s not only the automation and technology that make a great inventory management system; training staff and following proper safety and cleanliness guidelines are also the backbone of a smart warehouse storage system.

Likewise, investing in a smart warehouse management system is equally beneficial for both large and small businesses. IoT, automated guided vehicles, automated storage and retrieval systems, and automated inventory control improve accuracy, reduce overall costs, and increase customer service.