Technology article: Incorrect Inventory Placement in the Warehouse Proves Costly According to Technology Group International

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Founded in 1990 and headquartered in Toledo , Ohio , Technology Group International is a proven technology leader delivering Tier 1 application software functionality at a price performance level that can be readily accepted by organizations of all sizes. Specializing in software systems for small and mid-market manufacturing and distribution companies, TGI’s integrated Enterprise Series software suite is a complete business process management solution. The product offering includes Enterprise Resources Planning (ERP), Manufacturing Resource Planning (MRP), Supply Chain Management (SCM), Warehouse Management System (WMS), Advanced Planning and Scheduling (APS), Decision Support System (DSS), Business Intelligence, Manufacturing Execution System (MES), and eCommerce. TGI implements, maintains, enhances, and supports its packaged distribution and manufacturing software solutions directly and via its channel partners.

Rebecca Gill, vice-president of Technology Group International, contributed a feature in the current issue of Progressive Distributor. Gill reveals, “Almost every warehouse has some level of difficulty optimizing inventory placement. This occurs as a result of the following typical conditions: lack of prior analysis of inventory velocity history, lack of space in the warehouse, and limitations on storage space versus special product needs.
The most typical problem is that inventory is not stored in the warehouse in a way that minimizes transit time for product picking. One solution is to incorporate the following three steps into warehouse operations.
First, utilize a product sales history report to identify high-volume items (pick the items that account for 80 percent of total demand). Next, define the mechanism to be used for picking, such as picking by sales order or picking by zone. Finally, reorganize the warehouse so that the items identified on the product sales history report are located in the areas most adjacent to the shipping area, with the highest volume items being the closest. Although relatively simple in nature, these three action steps will minimize the total transit time to pick and ship an order, therefore increasing your productivity and decreasing overall labor costs.

About the author of Incorrect Inventory Placement in the Warehouse Proves Costly According to Technology Group International

Technology Group International
www.tgiltd.com
Rebecca Gill
rgill@tgiltd.com
800-837-0028