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Material Handling Information - Lack of Inventory Location Control
   
Inventory
Lack of Inventory Location Control

Once racks are full, inventory tends to be scattered and may even begin to congest the floor area of a facility.

Using barcode technology and RF scanners on rack locations reduces errors and confirms picks.
Problem
  • Large Stock area.
  • Locations ill defined.
  • Oversize floor stack locations (stock piled on floor).
  • Only primary locations are tracked.
  • Not sure what quantity is in primary vs. secondary locations.
  • Locations not used efficiently - "managed by the touch and see method."
  • Locations not bar coded or properly labeled.
  • Product not stored to produce efficient picking velocities (see Storage/Picking Comparison Chart).
  • Not enough floor space.
  • Users and equipment have access to all locations without any control.
Solution
  • Use granular locations.
  • Use a row, column, tier location configuration (spatially logical labeling). Redefine floor stack areas to improve accessibility (add aisles and make locations smaller). Use configurations such as LANE01 or DOCK01, etc.
  • Use a Warehouse Management Software (WMS) with unlimited random location tracking.
  • Use barcode technology on all locations.
  • Analyze historical data to re-configure item locations based on the velocity of the items (See Data Warehouse).
  • Users have access to specific locations based on the equipment used/required and/or type of items stored.
  • Use an Automated Storage & Retrieval System (AS/RS) to maximize vertical efficiencies and inventory location control.
Case Study Applications
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