3.1 Principles of efficient utilization of storage spaces

Efficient utilisation of storage space means keeping procured goods in a way that uses the available floor area and height fully, while keeping every item safe, easy to find and easy to issue. Storage space is costly to build, rent, light and secure, so poorly used space raises the cost of every item stored. The principles below guide the storekeeper on where and how to place goods so that space, labour and equipment are used well.

Example: in a Kenyan agro-dealer's warehouse, fertiliser bags stacked on pallets to a safe height in the back bays, seed packets on shelves near the counter and chemicals in a separate locked room show several of these principles at work.

Several of these principles are also layout principles (2.1.2); here they are applied to the placing of goods in the storage area.

Main principles

• Use the full height: Stack or rack goods up to the safe clear height of the building, within the load limits of racks, pallets and the goods themselves, rather than spreading them over the floor.
• Store by movement (popularity): Keep fast-moving items nearest to the issue or dispatch point and at a convenient height, and slow movers further away or higher up.
• Store by size and weight: Place heavy and bulky items low and near the doors, and light, small items on shelves or upper levels, to reduce handling effort and the risk of injury.
• Keep similar and related items together: Group items of the same class or items usually issued together, so they are easy to locate and pick.
• Separate incompatible goods: Keep apart goods that can damage or contaminate each other, such as chemicals and food, or flammables and other stock.
• Use unit loads: Store goods on pallets or in standard containers so they can be moved and stacked as one load, which saves space and handling.
• Keep aisles to the right width: Aisles should be just wide enough for the handling equipment and people, clearly marked and never used for storage.
• Give every location an address: Number rows, bays, levels and bins so that every item has a recorded location that can be found quickly.
• Match location size to the goods: Choose shelves, bins and bays sized to the items, so little space is left empty around them.
• Allow first in, first out: Arrange stock so the oldest goods can be issued first without moving newer stock, especially for goods with expiry dates.
• Remove obsolete, damaged and surplus stock: Dispose of dead stock promptly so that its space is freed for active goods.
• Keep the store clean and orderly: Good housekeeping keeps space usable, prevents damage and makes counting and inspection easier.
• Plan for flexibility: Use adjustable racking and shelving so the space can be rearranged as the range and volume of goods change.