Is Your Warehouse A "where?" House?

If you're supporting a 200,000 square foot warehouse with a barcode system, you may hereby stop reading because these tips are aimed at shippers who are operating a more or less manual operation, probably in smaller quarters. A manual operation doesn't mean that there's no computer inventory tracking but it does mean that freight is probably manually checked in and counted by warehouse workers and moved via forklifts or hand trucks. The process is repeated in reverse upon warehouse release.

When I walk in a warehouse and see big piles of freight sporadically spaced here and there while stretches of the warehouse sit empty, I know there's trouble afoot. Typically these piles sit under origin/destination or customer signs such as "Hong Kong" or "Taylor's Furniture." When a worker must pull a 10 carton order for Taylor's Furniture, it means digging through the Taylor's pile and hopefully matching the proper order numbers from what are probably look-alike cartons. While it may seem efficient to keep the Taylor's freight together, it's actually more difficult and time-consuming to pull an order with greater chance of error.


Instead I recommend a simple Alpha/Numeric Grid System. A company that typically receives or ships large orders would establish larger grid squares than one which ships 10 or 20 cartons at a time. However, even in a smaller operation grid squares should be able to accommodate about 8 pallets. Note: several different orders can occupy one grid square so you don't waste 8 pallets worth of floor space with a 5 carton lot.

When an incoming shipment arrives, regardless of where it's going to be redistributed to, it is put on the floor in a conveniently available space rather than in the pre-assigned "Hong Kong" or "Taylor's" lot. The warehouse worker fills out a warehouse receipt that is designed with your specifications in mind. If Taylor's inventory is tracked by the order number on the cartons, then obviously you want the warehouse receipt to show order numbers. Total packages and types of packages (cartons, barrels, skids, etc.) are noted. Weight, cube, date in/ date out, whatever you decide you need should be added. Leave room for special comments which will help identify freight when it's shipped out. That might read "cartons say Westinghouse" or "2 loose ctns and 4 shrink wrapped" or "partial order 10 ctns to follow." Prominent in one corner of the warehouse receipt is the grid location "G-3."

On the warehouse walls above normal freight level, letters will stretch alphabetically along one wall and numerically along the perpendicular wall. The warehouse becomes a giant Bingo card with freight in A-4, B-10, E-7, etc. Once you're comfortable that you have the proper size grid, cells, and have left sufficient aisle space, you can tape or paint floor outlines.

The grid system is also more flexible than pre-assigned locations. Let's say you have a large lot that is going to be stored for a longer term (lawn chairs that arrive in November). Instead of working around the pre-assigned "Hong Kong" or "Taylor'" location, you can stack the stored lot along the wall and out of the way of traffic—probably right under the old "Taylor's" sign.

When operating a racked warehouse, a similar grid system applies only with 3 locations (row, level and bin). The warehouse receipt may say Row 7 Level 2 Bin 4.

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