Chaotic Warehousing 2

Meaning of Chaotic Warehousing Part 2


Advantages of chaotic warehousing

The storage areas are optimally used in chaotic warehousing, as newly arriving goods are always assigned to a free storage space. You can react very quickly and flexibly to fluctuations in inventory or a change in product range: If a storage location is occupied, the next free location is used – regardless of the type of goods. The fixed costs that arise in static storage due to unoccupied space are significantly reduced.

If the goods are also stored at the storage location that can be reached most quickly, dynamic storage also shortens travel times. The time required to search for a free storage area is also minimized in the context of chaotic warehousing, as both the locations of the individual goods and items and the space that can be occupied are recorded by storage software. In this way, the information can be called up quickly by all employees involved if necessary.

The advantages at a glance

· You can equip your warehouse faster
· The assignment of the goods to the storage bin saves time
· You increase the degree of utilization of the storage rooms
· Simplification of purchasing processes, acceptance of orders and financial accounting
· Your employees in the warehouse have enough space and don’t hinder each other
· You don’t have to buy as many shelves and you can better utilize the existing ones

Optimal use of the available storage space

According to topbbacolleges, the chaotic warehousing allows you to significantly maximize your effective storage capacity. This also means that the physical storage capacity is approaching up to over 90 percent. You can better avoid empty spaces through the flexible allocation of storage spaces. This noticeably increases the degree of room use.

Increasing the flexibility of the warehouse

If you make changes to the type of material you are storing, you are always able to adjust the system accordingly. You don’t have to worry about major fluctuations in the operational process. This is especially important if you run a logistics company, for example. Such changes occur time and again because there are many different goods that have to be managed by different customers.

Faster loading of the warehouse

A system, which is computer-aided and which is provided with certain parameters, decides which storage spaces are allocated. Your employees in the warehouse do not need extensive knowledge of free storage spaces. You can save a lot of time by eliminating the need to organize free storage space. You don’t need to train or even train new employees in the warehouse for so long. Normally, you can use them to their full potential immediately. In addition, movements are optimized for faster stocking by the warehouse management system because it tracks the routes of the storage locations.

Increase in precision

It may not sound logical, but chaotic warehousing is by no means more prone to errors than organized warehousing. Rather, the opposite is more the case. With the support of the software, employees cannot make any mistakes, for example with regard to colors or sizes. Everyone who works with the warehouse management system receives precise information in real time about what can be found where and where a free storage space is located.

Disadvantages of chaotic warehousing

The disadvantage of dynamic warehousing is the high level of organizational and documentation required. Every employee affected by warehousing needs to know at all times at which warehouse a particular item is located. Purchasing and sales must be informed about the current stock levels in order to be able to react accordingly. As a rule, this task can only be carried out with online warehouse software or an ERP system (Enterprise Resource Planning System).

But even this does not guarantee that all warehouse stocks and storage areas have been correctly maintained by the respective employees. That is a risk that the chaotic warehouse management brings with it.
Another is that the entire inventory management depends on a computerized process. In the event of a technical defect, targeted withdrawals are no longer possible.

The disadvantages at a glance

· Great manual search effort arises in the event of a system failure
· Extension of walking distances through disordered storage
· You need a high level of discipline when posting
· There is a possibility that you can no longer find certain goods

This is how chaotic warehousing can be organized

In order for dynamic warehousing to work, it must be possible to digitally record both the goods and the storage locations. In addition to the storage software as a basis, the following requirements should be met:

  • The goods or pallets that were used to transport them have a barcode.
  • The storage locations also have coordinates that can be digitally entered into the system.
  • The employees are equipped with mobile barcode readers.
  • Without exception, all warehouse movements are digitally recorded and controlled.
  • The maintenance of the inventory control system is only entrusted to the most reliable employees. All staff entrusted with inventory management and the maintenance of the storage software have been trained or have been comprehensively instructed in the system.

Requirements for the implementation of dynamic storage

Before you decide to introduce dynamic warehousing, you need to consider a few more considerations.

  • Dynamic storage cannot be operated without the use of a warehouse management system. So this system is absolutely necessary. In order to be able to continue to adequately control your stocks, the storage locations must be supported by computers in their management. In addition, the WMS must be fully integrated into your ERP.
  • You have to keep in mind that if you switch to this type of storage, you will have to adapt your storage systems for the majority of your products. This creates flexibility that you can see as both a requirement and an advantage.

Chaotic Warehousing 2