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Terms & explanations relating to logistics, supply chain management and e-commerce

Fixed storage system

The fixed storage system is a storage procedure in logistics in which each item has a permanently assigned storage bin. A specific product is always stored in the same place in the warehouse and removed from there again. This system enables a clear structure and easy retrieval of items.

Features of the fixed bin system:

  • Fixed allocation: Each item or group of items always has the same storage location, regardless of stock levels or order volumes.
  • Simple management: The storage locations are constant, which makes it easier to keep track of stock and makes stock management less complex.
  • Quick access: As the storage location of an item always remains the same, employees can access the goods quickly and without searching.
  • Stock plans: Stock plans are often created to make it even easier to find items.

Advantages of the fixed bin system:

  • Overview: As the location of each item is clearly defined, employees can easily orientate themselves and know immediately where each item is located.
  • Easy training: As the system is standardised, training new employees is easier as there are no complicated processes to learn.
  • Error reduction: The fixed storage locations minimise the risk of mix-ups or incorrect withdrawals.

Disadvantages of the fixed bin system:

  • Inefficient use of space: As a bin must always be kept free for each item, space utilisation is not always optimal. For example, if an item is only in high demand seasonally, the space allocated to it often remains unused for the rest of the year.
  • Low flexibility: The system reacts less flexibly to changes in demand or product range expansions, as storage locations are allocated rigidly.
  • Stock dependency: If stock levels vary greatly, this can lead to empty spaces or bottlenecks, as storage locations are not utilised flexibly.

The fixed bin system is often used in smaller warehouses or in warehouses with stable demand and a constant product range. This system is also useful for sensitive or valuable goods that require special storage.

A common alternative to the fixed storage system is the chaotic storage system, in which no fixed storage bins are allocated. Instead, items are stored wherever space is available and an IT system ensures precise traceability.

The fixed bin system is a tried and tested method in warehousing for storing items in a fixed location at all times. It offers clarity and a low susceptibility to errors, but is less flexible and space-efficient than alternative systems.