Management of Pin Warehouse Areas for Picking Optimization

Abstract

This independent study focuses on analyzing and improving space management processes within the warehouse to enhance the picking efficiency at a fastener trading company. The research was prompted by a key operational issue: the absence of a systematic storage system and an organized warehouse layout, which has led to delays and picking errors. To address this, the study employs ABC analysis—prioritizing inventory based on its significance—in conjunction with a fixed location storage system. Actual warehouse operations were observed and analyzed, and the warehouse layout was redesigned to align with the picking frequency and characteristics of each product group.

The study revealed that the previous storage system, which lacked fixed locations and did not categorize items based on their movement, resulted in difficulties locating products and frequent picking errors. The average picking time was as high as 60 minutes per picking order. After implementing ABC analysis in combination with a fixed location system, the average picking time was reduced to only 37 minutes per order, and picking errors were completely eliminated. Furthermore, inventory data accuracy and employee operational efficiency showed significant improvement.