Glossary
Fixed-Location Storage
Tags: Glossary
A stocking strategy that uses set warehouse locations assigned to each SKU. If additional storage is required, the excess stock will be placed in an 'overflow' area with appropriate cross-references in systems or on bin labels. Locations are typically reviewed periodically as part of a slotting strategy.
What is Fixed-Location Storage?
Fixed-Location Storage
Fixed-location storage is a stocking strategy commonly used in logistics to efficiently manage inventory in warehouses. In this strategy, specific warehouse locations are assigned to each Stock Keeping Unit (SKU), ensuring that every item has a designated place within the facility.
The primary objective of fixed-location storage is to streamline the picking and replenishment processes. By assigning a fixed location to each SKU, warehouse staff can easily locate and retrieve items when needed. This eliminates the time wasted searching for products and improves overall operational efficiency.
In cases where additional storage space is required, an overflow area is designated to accommodate the excess stock. This area is separate from the main storage locations and serves as a temporary holding space. To ensure proper tracking and organization, cross-references are established in the inventory management systems or on bin labels. These cross-references link the overflow area to the corresponding fixed locations, allowing for easy retrieval and replenishment.
Periodic review of the fixed locations is an essential aspect of fixed-location storage. This process, known as slotting strategy, involves evaluating the placement of SKUs within the warehouse. The goal is to optimize the layout by considering factors such as product popularity, order frequency, and proximity to shipping areas. By periodically reviewing and adjusting the fixed locations, warehouses can maximize efficiency and minimize unnecessary movement of goods.
Fixed-location storage offers several advantages for warehouse operations. Firstly, it enhances inventory accuracy by ensuring that each item has a designated place. This reduces the risk of misplacement or loss of products. Secondly, it improves order picking speed and accuracy, as staff can quickly locate items in their assigned locations. Additionally, fixed-location storage facilitates better space utilization, as it allows for efficient stacking and organization of goods.
However, it is important to note that fixed-location storage may not be suitable for all types of inventory. Perishable goods or items with short shelf lives may require a different storage strategy, such as first-in, first-out (FIFO) or first-expired, first-out (FEFO). It is crucial for logistics professionals to assess the specific needs of their inventory and choose the most appropriate storage strategy accordingly.
In conclusion, fixed-location storage is a stocking strategy that assigns specific warehouse locations to each SKU. It improves operational efficiency by streamlining picking and replenishment processes, while also facilitating better inventory accuracy and space utilization. Regular review and adjustment of fixed locations through slotting strategies further optimize warehouse operations. By understanding and implementing fixed-location storage effectively, logistics beginners can enhance their understanding of warehouse management and contribute to efficient supply chain operations.