I need more space!
Posted on August 7, 2009
Before you go looking for more space, be sure that you are using what you have well. The first place to look for space is slow moving inventory. Rank every SKU in storage by turns. Start at the bottom of the list and ruthlessly evaluate the value of keeping the inventory. Seek the help of the company’s total management team in these decisions. Every SKU eliminated is one more position available for active product. And once you have a process in place, do this review at least once a year.
Tags: distribution, layout, Space Utilization, Storage, warehouse, warehousing
Aug 07, 2009
Likewise, a sudden need for additional space may indicate a business change elsewhere in the value chain. Asking questions like – “Have our markets changed?” “Do we see more volume in this line as opposed to this other line?” and “How is this affecting our other products?” may result in in realising a different realization:
We don’t need more space – We need different space, and we need it to work in a different way!
Aug 07, 2009
Good point. It is important to know whether the problem is a short term imbalance or a trend that requires re-evaluation of the supply chain.