What is the best system to keep track of inventory?

There is no “best” way to keep track of inventory since all inventory management techniques have their merit as long as it works for the facility that has implemented it. However, there are a few best practices for rack labeling, since it is one of most popular inventory management options. These tips are helpful to know when designing a rack labeling system for the first time as they will make for a more organized and swift paced working environment.

Best Practices for Inventory Management

The first of those recommendations includes designing the rack labeling system based on the picking technique that is used in that facility. Picking is the method in which employees go around the warehouse to select products that are needed in manufacturing or for customers.

  • First the user must determine the best picking technique that works for all employees and is simple to follow. This can be a serpentine setup where pickers can weave up and down aisles for high volume and fast paced warehouses. Another option is the standard method where aisles are numbers in numerical and alphabetical order. Workers may need to turn around to get all the items they need.

Labeling units from the bottom up is the next best practice method for warehouse rack labeling. By starting at the bottom, once more shelving is added, if necessary, the whole system will not have to be reordered to cater to the new addition.

  • Totem rack labels are an excellent option for these types of labeling endeavors if there are racks that are stacked high.

Lastly, consistency is the key to a long lasting and effective rack labeling system. By choosing durable labels and a system that works for a facility’s unique layout, nothing will have to be redone for a very long time, if not years down the road.

  • Utilize all the same material and have a standard label layout to make installation and replacement easy. A standard label layout will also assist in having a recognizable visual tool for employees. If every label looks different then human error may increase due to lack of recognition.

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