Advantages of the chaotic storage system

Despite its name, a chaotic storage system is an efficient way to manage a warehouse or logistics centre. Chaotic storage is a dynamic warehousing approach where products are stored based on the availability of space rather than designated locations. This method ensures that storage capacity is utilised as efficiently as possible, resulting in faster processing times.

This approach uses the ABC methodology to classify products based on criteria such as turnover rate or access frequency. The methodology ensures that high-demand products are stored closer to picking or shipping areas. The process is facilitated by a warehouse management system (WMS) with a direct ERP connection, which assigns free storage locations to products upon arrival in the goods receipt, often with the help of barcode scanners. This system optimises storage capacity and accelerates putaway.

However, chaotic storage systems may not be effective for extremely bulky items, hazardous or frozen goods.