Is Your Inventory Management Layout a Traditional One?

Are you still focused on the fundamental premises Inventory managers have been engaged in the past d...

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Posted by Dave Food on May 6, 2019 8:06:47 PM
Dave Food

Are you still focused on the fundamental premises Inventory managers have been engaged in the past decades? The idea of an Organised Inventory is no longer on use, as in most businesses, the modern Warehouse Inventory Management has been transforming accordingly to customer’s expectation both in the B2B and B2C areas. Excellent comprehension of Inventory Management is most important for you to be successful, whether it is small or large businesses. 

Are you hooked on these old practices of Organised Inventory?

  •  Traditional storage warehouses are Mezzanine Flooring, Multi-tier racking, Pallet Racking, Shelving, Mobile Shelving, and standard back-to-back storage.
  • Inventory managers centred on unit load sizes to use to the full the warehouse area.
  • A grid-style warehouse layout, focused mainly on increasing its cube space.
  • The purpose of vertical and horizontal space is to have room for the entire inventory, to collect it and shelve it safety.
  • To provide well-organised transit areas to lessen blocking, reducing transit-times.
  • Slotting, replenishment and location control system gained much interest.
  • Barcodes were used to a great extent.
  • The SKU’s (Stock Keeping Unit) which are fast and add for most of the sales.
  • Warehouses were planned with physical logistics in view – inventory management, receivables, inventory flow and dispatch, and were all delivered on timetables of 2 to 5 days.

 Amazon is leading the way of Disorganised Managed Inventory. Are you ready to explore this as a model?

  • They operate with a customer-centric approach.
  • Their warehouse and inventory technologies layout is to develop product selection and delivery times for customers.
  • Amazon carries out a six-sided check of each inventory to certify that the stock is not damaged and is ready to be shipped. If any issues with the receivables, Amazon’s problem-solver unit engages in 2 hours to 2 days to prove the desirable condition of the inventory.
  • Once the item is scanned and green-lighted as an inventory, its exact location is established, and it is ready for Amazon's customers to order it on their website. Moreover, as soon as the customer orders a product from their website, a picker will be alerted to pick the requested item.
  • Amazon stockpiles its inventory at random in the warehouse; the technical term for this is random stow or Disorganised Inventory.
  • There are robots which reorder the shelves to make accessible the fastest picking route.
  • Their algorithm indicates the transit route and sends the location of the item to be picked on the picker’s hand scanner.
  • They focus on the quickest route to pick items. Robots move shelves to assure the picking is done at high-speed.
  • Once the item is picked, the computer will indicate the right box size for packing and labelling, done automatically.
  • Finally, the product is sent and delivered.

All through the process there are multiple automatic check-ups to guarantee the product is shipped to the right customer

Final comments: warehouses and inventory will always be an essential part of a cost centre; a customer-centric approach can drive incredible revenue outcomes. Even more, when taking a delivery-centric approach at receivables and double-checking the inventory is entirely inspected, then you increase the possibilities of delighting your customers. Likewise, if your Inventory Management layout has a perspective on the fastest picking route, then your delivery timetables will get stronger.

Therefore, knowing the location of your inventory is more important than an organised inventory. So, which one you think will give you the outmost from your Inventory Management, the old organised approach, or the modern Disorganised Inventory Management? Take your chances!

Dave Food

Prophetic Technology


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