WAREHOUSE MANAGEMENT

Warehouse Stacking Analysis and
Idle Stock Management

Data-driven optimization solutions to increase warehouse space efficiency and reduce idle inventory costs.

Problem Definition

Inefficiency in warehouse management is often hidden deep within the operation. Stocks that are physically present in the warehouse but have not seen movement for a long time disrupt space utilization, tie up capital, and directly impact supply chain decisions. Therefore, idle stock management is not just a matter of warehouse layout; it is a strategic engineering problem.

When warehouse records were examined, it was determined that specific profiles:

  • Had not seen any shipment or operational movement for a long time,
  • Continued to physically occupy space in the warehouse,
  • Continued to be tracked as active stock in the system.

Why Was the Analysis Conducted?

Idle stock is not a problem that can be easily detected visually. For this reason, the analysis was designed based on clear engineering criteria rather than subjective evaluations. Within the scope of the study, profiles that showed no more than 50 kg of movement since their entry into the warehouse were identified and classified under the 'idle stock' category. Through this approach, the problem was brought to a quantitative and verifiable state, free from interpretation.

Applied Method

During the analysis process conducted by the expert team:

  • Warehouses were segregated based on the stacked kilograms per year,
  • Warehouse-based stacking rates were visualized,
  • Stocks occupying full racks and those partially occupying space were separated,
  • Verification was performed by comparing physical count results with system data.
Warehouse Stacking Analysis Charts
A screenshot from the "Warehouse Stacking Dashboard" we created for the company in Excel.

Findings Obtained

The analysis outputs revealed critical results regarding warehouse efficiency:

  • A total of 119 tons of material was in an idle state,
  • 10.33% of the total warehouse stacking was not generating active value,
  • It was determined that the area with the highest concentration of idle stock was the main warehouse (62%).

These data clearly show that the problem is not isolated but a structural warehouse management issue.

119 Tons

Detected Stacking Amount

10.33%

Gained Warehouse Space Ratio

Importance of the Study and Achievements

  • The amount of idle stock became measurable for the first time.
  • The actual utilization rate of the warehouse space became clear.
  • A technical infrastructure was established for stock clearing, relocation, and scrapping decisions.
  • Warehouse management was shifted from intuitive decisions to a data-driven structure.

Warehouse optimization means not only gaining space but also freeing up capital, increasing operational speed, and ensuring accurate planning.

For more information, you can visit our Operational Excellence services page.

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