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5 Tips for Keeping Your Stockroom Organized

September 10, 2024
Stockroom blue tub and barcode scanner
A non-acute healthcare organization’s stockroom serves as the center of the facility’s inventory. Facilities that enact a comprehensive storage management strategy can keep inventory organized and accounted for, while maintaining a focus on costs.
 
“If your business is committed to reducing storage costs; speeding up tedious, inventory-related tasks, meeting customer demands faster, and minimizing inventory shrinkage, spoilage and obsolescence; then organizing your stockroom correctly is an essential first step,” according to the software company Sortly.
 
Non-acute facilities can follow five steps to keep their stockrooms organized and efficient:

1. USE A FIRST IN, FIRST OUT (FIFO) SYSTEM

Taking a FIFO approach ensures items that were stocked first are used first. This is important in healthcare settings where products such as medications and medical supplies may have expiration dates. By using the oldest stock first, facilities minimize the risk of having to dispose of expired or outdated products, which ultimately saves money.
 
“FIFO provides the most accurate picture of what your inventory is costing the business at any given time,” according to a Forbes article. “It aligns the current costs of the business with the actual flow of goods or inventory out of the business more accurately than any other method. This leads to better accounting and more real-time analysis on where the business stands if it has a heavy amount of inventory.”
 
In a FIFO system, new shipments are placed behind older stock, making the management and rotation of stock simpler and more systematic. This straightforward approach saves time during restocking, reduces errors handling supplies, and makes it easy to track lot numbers and expiration dates, which are needed in the event of recalls.
 
FIFO promotes the regular movement of items in inventory, which can optimize space and simplify stockroom procedures. Regular product turnover prevents overfilling storage areas and makes it easier to organize and locate supplies—a must-have in non-acute healthcare where a variety of products are stored.

2. MAXIMIZE SPACE WITH ADJUSTABLE SHELVING

Flexible shelving helps maximize space and ensure the most frequently accessed products are the most available. This makes it easy for staff to locate the items they need. 

Adjustable shelf heights and configurations make it possible to customize storage spaces according to the size and shape of different inventory items. The adaptability is useful in environments where stock and item sizes vary significantly.
 
“Another benefit of adjustable shelving is that you can maximize your vertical space and make the most of your floor plan,” according to an article on LinkedIn. “You can do this by adjusting the number and spacing of the shelves to fit more products without compromising visibility or accessibility.”
 
Flexible shelving systems are designed to be robust and durable to support heavy loads. The ability to customize the stockroom setup can improve safety by ensuring that heavy items are stored at more accessible, lower levels, reducing the risk of injuries caused by lifting heavy or unstable items.

3. ENSURE ITEMS ARE PROPERLY LABELED

Clearly written labels help employees quickly identify items, reducing the time spent looking for products in the stockroom.  

“Labeling and signage play a pivotal role in enhancing the organization and navigability of a stockroom,” notes Storables.com. “Clear and comprehensive labeling, coupled with strategically placed signage, facilitates efficient inventory management and simplifies the retrieval process.” 
 
Detailed labels can include critical information such as product descriptions, part numbers, barcodes and expiration dates. These labels can help prevent errors with stocking and accessing products. In addition, labels can include dates when items were received, which helps employees use older items first to support a FIFO strategy.
 
Other label information can include reordering details, such as supplier data and reorder levels. The information makes restocking more efficient and ensures that inventory levels will meet demand.

4. PERFORM REGULAR AUDITS OF ITEMS IN STORAGE

Facilities should audit their products to ensure the accuracy of inventory records compared to the actual items on the stockroom shelves. A detailed audit can improve the  accuracy of financial reporting. For example, it can determine if items are missing, which can be the result of theft or items being misplaced.
 
“An inventory audit is a systematic process of verifying the physical quantity of your products against your recorded inventory levels,” explains Flowspace.  
 
To ensure items are accounted for, facilities should make sure employees follow established procedures for inventory, strategies such as FIFO are implemented and stockrooms are audited to ensure product accountability. 

Performing quality control of items in storage also ensures that the products being used have not expired, are undamaged and have not degraded over time.

“A GPO has contracts with experts who can work with non-acute members to customize a stockroom strategy to meet their individual needs.”

 5. TRAIN STAFF ON PROCESSES AND PROCEDURES

For FIFO and other strategies to deliver the most value, facilities must first create and promote policies for maintaining the stockroom so all staff support the same approach. Staff training promotes consistency in operations by establishing standardized procedures for handling, storing and managing inventory, which makes stockroom operations more efficient and consistent.
 
Ongoing training helps reduce errors. This ultimately saves time and resources, preventing losses due to mishandled or misplaced items.
 
“From the beginning, set up strict rules for your stockroom. And [train] all new staff members accordingly,” advises COMBASE USA. “Like other aspects of keeping your business organized, a uniform policy helps keep workplace procedures simple and straightforward.”
 
Employees who understand processes can ensure that stock is fresh, based on FIFO. They can also align supply with demand to reduce the risk of overstocking or stockouts.

GPO EXPERTISE SUPPORTS STOCKROOM ORGANIZATION

Unorganized stockrooms in non-acute healthcare facilities lead to inventory mismanagement, impacting essential care delivery by causing shortages of critical products. Implementing a comprehensive storage management strategy that incorporates FIFO, adjustable shelving and other best practices can optimize stockroom operations, ensuring products are used efficiently before they expire.
 
Similarly, scheduling audits, ensuring proper labeling and training staff are crucial to maintaining accurate inventory records, preventing errors and ensuring products are readily available. These efforts enhance overall operational efficiency.
 
Non-acute facilities can also keep their stockrooms better organized with less effort by working with their group purchasing organization (GPO). A GPO has contracts with experts who can work with non-acute members to customize a stockroom strategy to meet their individual needs. Even facilities that have a well-organized stockroom may be able to drive new efficiency or value by talking to their GPO about their goals, strategies and inventory usage.

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