What is an ABC warehouse?
An ABC warehouse means that the warehouse goods locations are based on an ABC analysis that provides insight into the optimal location of the goods. To achieve the most efficient warehouse processes, we recommend that you carry out an ABC analysis.
ABC analysis in the warehouse
An ABC analysis can be used as a management tool for efficient warehouse management. The purpose of optimizing the location of the goods is to streamline the workflows for storing and picking.
The optimal location of goods is generally determined by the picking frequency. Goods with high picking frequency are placed at A locations, goods with medium picking frequency are placed at B locations, and goods with low picking frequency are placed in C locations. The locations are categorized in the warehouse according to picking, storing, and ergonomic height.
The ABC categorization of the goods may change over time – for example, a C item can become an A-item. The analysis can be used for continuous improvement and simple relocation of items based on the ABC classification. You get an overview of which items are inappropriately located and insight into the best location of the goods.
Warehouse management with ABC analysis
In the LOGIA warehouse management system, it is easy to perform an ABC analysis based on the picking history of an item and its location in the warehouse. LOGIA visualizes which items are inappropriately located and suggests new locations for the items. LOGIA guides the employee through the relocation of the items.
Contact us to learn more about the ABC analysis in LOGIA.