Proper planning of the storage system helps in improving the efficiency of the entire logistics system. This helps in speedy movement of goods across the supply chain, which results in improving system productivity.
1. Space Economics
Proper design of storage scheme can result in a substantial saving on the available space, which helps in planning for additional storage load without any investment in space.
2. Enhance Throughput
A well-designed storage scheme will reduce the movement of material handling equipment and the idle time, resulting in significant improvement in system productivity.
3. Ease in Material Location and Tracking
Proper storage scheme helps in quick location and tracking of the inventory item during material pickup operation, resulting in compressed order cycle time.
4. Security, Safety and Housekeeping
A well-designed system will bar unauthorized access to the inventory ensuring security against theft and pilferage. The system will also reduce the accidents due to fatigue, strain and collapse of the equipment. As the number of product handlings is reduced, the risk of damage to the products is greatly minimized.
Source: Sople V.V (2013), Logistics Management, Pearson Education India; Third edition.
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