Inventory storage: The game-changer for business efficiency 

Gone are the days when managing inventory was just about keeping tabs on your products. Nowadays, it’s about turning your stock into a well-oiled machine that saves you time, money, and stress. The good news? With the right system in place, you’ll set a rhythm that keeps things running smoothly, just like the ultimate party playlist keeps the good times rolling.

And, much like hosting a house party when your folks are out of town, the pressure is on. That’s because if you choose your inventory storage system poorly, you might end up with lost or damaged stock. Even worse, some products may become unavailable when your customers want to buy them. 

With the risk of missed sales and unhappy customers, picking the right system can sometimes feel overwhelming. But it’s all worth it to have your business dance to its own successful beat. 

What is inventory storage?

Your inventory is made up of products just waiting to be purchased. Your goal is to ensure that every item is easy to find, organize, and track. So, it makes complete sense that how you store, track, and move said products is crucial to creating a seamless system. 

Think of it as setting up the dance floor. It’s not just about having enough space for everyone invited, but also about arranging everything so that everyone can dance in peace, the vibe is good, and you don’t trip on your way to the bar.

This is why choosing the right inventory storage solution involves more than just putting up shelves or renting a random warehouse. It’s about creating a system that takes into account the available space, budget, as well as concerns about unloading or spoilage (especially for items like food, beverages, or cosmetics).

When you get it right, your inventory storage is what becomes a powerhouse for growth, saving you time, money, and headaches.

Inventory storage best practices

Say it with me now: Effective inventory storage is a critical part of long-term retail success. Essentially, if you don’t manage your stock in the best way possible, you risk losing track of it, having it damaged, or even stolen. This means money down the drain for your business.

Inventory storage is like orchestrating a smooth operation where every piece is in its right place. But fear not! There are a few tips and tricks to make sure your business hits all the right notes and makes customers dance.

• Make way — Clearing up floor space makes everything easier for everyone. It’s important to organize items and make them easy to access without cluttering the floor. A tip would be to use wall shelves and vertical storage to maximize space and increase storage capacity.
• Regular inventory checks — Much like ensuring your party playlist is up-to-date, regular inventory checks are essential. Depending on your business needs, such routine checks are performed daily, weekly, or monthly. They help maintain accurate records, prevent theft or damage, and resolve discrepancies.
• Reorder timers — Setting reorder points is like knowing when to restock your party supplies. Anticipate and create alerts for when it’s time to reorder each item. This guarantees you receive timely reminders, adjust orders based on how fast sales are, and avoid running low or having excess stock.
• Store by season — Use the Christmas decorations method to manage your inventory. That is, to keep off-season items out of the way. You can move seasonal products to less accessible spots, or even rent a small storage unit for items like pool floats or hot drink mugs. Most importantly, don’t forget to rotate stock according to the season to stay organized year-round.
• Inventory management software — Moving on with the times is not just about the seasons. Tech is crucial, and inventory management software is what helps you monitor where items are stored, how much is left, and what’s coming in. This simplifies organizing and managing your inventory, making sure you always know what’s in stock and where it belongs.
• Upgrade to keep up — Implementing a software solution is not enough if your storage system feels outdated or isn’t meeting your needs. Don’t postpone regular system updates and upgrades if you want to stay organized and meet the demands of today’s customers more effectively. 

The 5 main types of inventory storage 

Choosing the best approach for your business cannot be overlooked — even when it comes to small business inventory storage. This is why, when it comes to inventory storage ideas, having the right plan and tools leads to better organization and preparation. 

There are a few types of inventory storage to choose from, each with its own strengths and pros. Here’s a look at the main types of inventory storage and what they bring to the table.

1. Central storage

Central storage means everything is kept in one designated spot — a central location, if you will. Having everything in one place makes this inventory storage type easier to track and manage, simplifying shipping items to various locations. But keep in mind that this particular method can lead to less on-site stock at other locations. This means you must prepare to avoid missed sales in case demand suddenly spikes elsewhere.

2. Shelf storage

True to its name, this inventory storage type is all about making the most of your shelf space. No matter their type, shelves allow for easy access and product arrangement. This method is perfect for keeping smaller quantities of items neatly organized, but it can also extend to managing a variety of product sizes and types. It all depends on how creative you get with your shelving.

3. Block storage

Better known as block stacking, this inventory storage type is a simple, cost-effective way to store inventory by simply stacking items. This can be done on pallets or even on the floor itself. This approach cuts to the chase and doesn’t require extra equipment, making it optimal for quick-moving stock. To stay organized, it’s best to stack similar items together and place more stable or large items at the bottom to prevent damage. As far as its practicality goes, the downside is that accessing items that are stacked at the back or bottom can be challenging. 

4. Rack storage

Compared to block stacking, rack storage can prove to be a more structured and supportive system. It provides easy access and top organization, particularly for more complex businesses that need to follow specific inventory management systems. Keep in mind that the type of racks chosen usually depends on your inventory flow and storage needs. 

5. Point-of-use storage

Point-of-use storage means keeping products where they are needed most — at the store or as close to the consumer as possible. Think of this storage type as storing inventory only as needed in order to reduce operational costs and minimize errors. It basically eliminates the need for a central warehouse, making this setup often used in just-in-time or more repetitive production operations.

Effortless inventory management with Katana

With Katana, storing and managing inventory is a breeze with features like:

• Live inventory management
• Bin locations
• Order picking and packing
• Seamless integrations
• Stocktakes

Katana gives you clear visibility over your sales and a real-time overview of your entire supply chain, so total inventory control can be at your fingertips.

Ready to elevate your business? Then book a demo now to see how Katana can revolutionize your inventory management and take your business to the next level.

FAQs

Ioana Neamt

Contributing Writer

With more than 10 years of copywriting experience, Ioana has a fondness for longform writing, investigative journalism, cats, and Victorian-style mansions.