As the number of components increases, similar component names also multiply, leading to a heavier workload. The method of determining and managing storage locations is called location management. Location management consists of fixed location and free location systems. To accommodate variations in component types, free location systems have become widely adopted today.
In this first installment of our new series, we will explain the advantages and disadvantages of both fixed and free location systems, discuss component management methods, and propose inventory management system solutions.
・Types of Location Management: Fixed Location and Free Location
・What is Picking?
・Types of Picking: Single Picking and Total Picking
・Current Issues in Component Management
・Summary｜ Utilize an Inventory Management System!
What is Location Management?
Location management refers to the method of determining and storing products in designated places. A location is the address of a storage area within a warehouse and is a management method widely used during picking operations.
This method makes it easier to find what is stored where, given that warehouses contain various products and components. Additionally, by utilizing racks, travel distances can be reduced compared to floor storage.
Types of Location Management: Fixed Location and Free Location
Location management is broadly divided into two types: fixed location and free location. Each has different advantages and disadvantages, and the requirements for each differ significantly.
What is Fixed Location?
Fixed location refers to the method of fixing storage space for each product. It is simple, easy to understand, and easy for workers to remember. Due to the nature of this storage space system, it may sometimes be necessary to change locations.
Advantages of Fixed Location
Since storage spaces are fixed, there is the advantage of easily knowing where items are located. This not only makes it easy to immediately check whether products are out of stock, but also allows for simple receiving and shipping operations even without an inventory management system.
Disadvantages of Fixed Location
Because storage spaces are fixed, even if a product is out of stock and there is empty space, other products cannot be placed there. This creates the disadvantage of easily falling into situations where securing storage space becomes difficult. Additionally, when space becomes insufficient due to changes in product demand trends, it may be necessary to change and review the warehouse location layout itself.
What Fixed Location Requires
Since storage spaces are fixed, even if there is empty space in a designated location, other products cannot be placed there, resulting in decreased storage efficiency. Therefore, it can be said that fixed location systems require the establishment of mechanisms to improve storage efficiency.
What is Free Location?
Free location refers to the method of storing items in available spaces. Since items are stored in empty spaces, storage efficiency can be improved. However, if management is not properly maintained, finding products becomes difficult, potentially leading to decreased efficiency.
Advantages of Free Location
The greatest advantage is improved storage efficiency, as items are stored in available spaces. Even if everything cannot be placed in one storage space, it is possible to divide items across multiple locations, thereby improving storage efficiency. Unlike fixed location systems, there is no need to change warehouse locations.
Disadvantages of Free Location
The disadvantages include the need to record storage locations each time, as product locations vary, and the tendency for work efficiency to decrease due to longer travel distances during picking. Failure to record each storage instance can lead to situations where multiple workers must continuously search throughout the warehouse.
What Free Location Requires
If you do not properly understand where everything is located, troubles such as being unable to find target products will occur frequently. To prevent time loss, it is necessary to keep track of everything.
What is Picking?
Picking refers to the work of collecting required products. The role of picking operations is significant for correctly shipping products from the warehouse.
Types of Picking: Single Picking and Total Picking
Picking refers to the work of collecting required products. The role of picking operations is significant for correctly shipping products from the warehouse.
Single Picking
Single picking refers to the method of collecting products for each individual order. It has the advantage of being easy to pass to the person in charge because there is no variation in packaged products. Single picking is sometimes called the "pick-to-order" method.
Total Picking
Total picking refers to the method of combining several orders and collecting the required quantity by type. Total picking is sometimes called the "sort-while-pick" method because collected products are distributed in the required quantities according to order forms.
What is Required of Picking
Picking operations are required to be performed accurately without mistakes and with a sense of speed. It is necessary to work with an understanding of the instructions given and to perform checks each time. To prevent human error and proceed with picking operations efficiently, implementing an inventory management system such as our Smart Reel Rack (described below) is optimal.
Current Issues in Component Management
Multiple problems have long been identified in picking operations. Examples include spending excessive time searching for target products, picking errors due to visual inspection, empty space management issues, and difficulty managing component inventory itself.
Wasting time affects work efficiency, and errors may occur consecutively depending on the person in charge. To solve these problems, it can be said that the use of an inventory management system is essential.
Summary
Utilize an Inventory Management System!
In recent years, various products have been released as systems to support inventory management operations. One system we can recommend among these products is the Smart Reel Rack.
Implementing this system helps reduce receiving and shipping time, prevent human error, improve work efficiency, and reduce warehouse floor space. For these reasons, it can improve and resolve all current issues in picking operations.
Please watch the video below to learn how to use the Smart Reel Rack!
