A “storage buffer,” a sectioned-off warehouse area, is used to hold products temporarily. Items, whether they are finished goods or raw materials, are kept in a certain storage system for a set amount of time until they are needed or sent out.
Prior to entering a new season (especially autumn or winter), entrepreneurs should stock up on items and keep them in a separate warehouse, so their business is ready to deal with high customer demand.
Buffer storage systems are often used when the rates of supply and demand for a product don’t match up, or when the installation is in the middle of two different production processes.
This article will talk about the most common ways to build a warehouse storage buffer, what its benefits are, and how to automate it to increase throughput.
Defining Buffer Storage
A buffer storage system is a logistics hub—often positioned near the company’s manufacturing plant—that absorbs outflows of completed items from the production facility. With regard to the warehouses’ available space and needs, it may be organized in a variety of ways.
There is a lot more to logistics than merely getting from point A to point B. It’s the skill of regulating the flow of materials and predicting demand. The lean manufacturing concept, which was initially implemented in Toyota’s plants, lies at the heart of this.
The idea behind lean manufacturing is to run a business efficiently while minimizing waste. In the absence of enough supply, the only thing businesses waste is money. To avoid that scenario, buffer stocks are created at the very end of the production process.
The time it takes to store buffer stockpiles might range from a few weeks to a few months. As early as the autumn, great national retail companies, for example, begin purchasing more consignment goods in anticipation of the Christmas season sales.
Stocks must be kept in warehouses at all times. As a result of a lack of available storage space, businesses sometimes have to resort to renting additional pallet locations. As a result, a buffer warehouse serves as a place where inventory can be temporarily stored.
When processing orders and kits or items that must be sent out immediately, a storage buffer is often used to organize the products and sequence them. For the latter instances, the buffer is often positioned in the warehouse’s dispatch area.
The preload flow channels can also be installed there, where orders are kept until they are ready to be transferred into the delivery mechanism.
Creating a Useful Buffer Storage
When designing your storage buffer, you must think about the amount of space available and the activities that will be performed there. Storage space should not only be enough, it should also be able to supply the goods on time and without interruption.
There are a number of factors to consider while setting up a buffer, such as how near it should be to where items are being picked up or loaded into delivery trucks.
It is common practice for companies to place their products directly on the floor. But, when the number of stockpiles is big, it is always a better idea to create practical storage systems that can also be moved easily.
So, many different kinds of storage systems can be put in, like pallet racking, push-back pallet racking, or even vertical carousel modules that take up as little space as possible by making use of all the available ceiling height.
It is essential for a storage buffer to be agile and versatile in order to be efficient. Product entry and leave times must be rapid and precise, and the storage system must be flexible enough to accommodate these needs.
Seven Benefits of a Buffer Storage System
Companies that produce, transfer, and distribute vast quantities of products benefit greatly from using buffer warehouses as a logistical strategy. The following are seven of the advantages they have:
- Optimization of space. A greater number of items may be stored in a smaller amount of space by making the most of every inch. This area serves as a temporary storage facility for all of the equipment needed to complete the installation’s various procedures.
- Stock centralization. Having complete control over their products in this sort of facility helps companies to gain complete control over their products while minimizing inventory management costs.
- Immediacy and allocation. The buffer is fully synchronized with and linked to the other working areas where procedures like picking, kitting, and dispatching are performed. This increases the agility of manufacturing and transportation.
- Lower costs of transportation. These warehouses are placed between manufacturing facilities and large cities, reducing transportation distances and, therefore, distribution costs.
- Enhanced productivity. Increasing warehouse productivity entails making the most of the available space and ensuring the availability of supplies for different operations currently in motion.
- Shorter delivery times. These facilities enable efficient product flows, lowering delivery and shipment costs as well as delivery time.
- Reduced streamline errors. Products are arranged in the storage buffer in accordance with the sequence in which they will be used. As a result, errors are minimized and supply is more efficient.
Due to these factors, a buffer warehouse is a crucial component of the supply chains of enterprises with a large demand volume or a need for ongoing expansion. These centers allow industrial units to specialize in certain manufacturing methods and guarantee that regional warehouses in close proximity to major cities are always supplied with the necessary items.
Automating a Storage System
Automation is one of the most popular methods for constructing a successful transitory storage facility. It enables the continual flow of supplies wherever they are needed.
A buffer warehouse must be able to quickly move huge amounts of products in order to immediately serve regional facilities or distribution centers.
Buffer warehouses necessitate logistics solutions that maximize storage space since they hold all items that come off the assembly lines. As a result, many companies are replacing human handling equipment with stacker cranes.
These autonomous storage and retrieval systems (AS/RS) help accelerate the placement and removal of products on and from the racks. The system itself maximizes storage space and guarantees that the pick stations and loading docks are stocked with ready-to-ship items.
That’s why companies construct pallet conveyor systems, and automated transportation systems, utilized to streamline the movement of goods between the manufacturing facility and the warehouse, as well as between different storage zones. This technology expedites the movement of items to the shipping area.
Aside from conveyors, temporary warehouses generally include sophisticated technologies that improve the efficiency of product flow. Sorters, for instance, are connected to the WMS and sort items right away based on which distribution center or regional warehouse they will be sent to.
Who Should Incorporate These Solutions Into Their Manufacturing Process?
Buffer storage is a service provided by businesses that are tied to client demand. In general, they are:
- Exporters and importers
The COVID-19 pandemic has demonstrated to many businesses the importance of maintaining buffer stockpiles. Before quarantine limits were implemented in the spring of 2020, client demand began to spread across all countries. As a result, customers have purchased an increased amount of food and other necessities. Retailers were unable to obtain supplies quickly enough, resulting in a shortage on store shelves.
Many businesses have begun to retain buffer stockpiles after lockdowns were announced. Buffer storage was the most popular service among Chinese importers, factories, cleaning supply wholesalers, and internet retailers.
Deferred demand is another excellent example of why businesses use these kinds of logistic centers. Many people purchase items as a precaution. It might be seasonal produce, durable commodities, or even stocking up for unexpected global events, such as the pandemic that caught the whole world off guard.
For your business to grow, you need to be able to handle customer demand and offer products at the right time, place, and amount.
A buffer warehouse is an excellent solution for businesses with large production demands. They are often a key hub for all finished products waiting to be sent to distribution centers or other regional storage facilities.
Keeping buffer stocks is an essential component of a lean manufacturing approach, and it assists businesses in cutting costs.
There are a variety of ways to implement these systems according to your needs, budget and time needed for your items to be delivered to the final destination.
Many businesses employ storage buffers to store materials used in certain procedures. An efficient storage buffer uses the available surface area to deposit the required goods and fulfill the function for which it was designed.
Nonetheless, buffer warehouses need tight inventory control to minimize stockouts or, conversely, overstock that pushes up storage costs.
As a result, businesses integrate automated storage systems with a warehouse management system (WMS), which syncs all actions taking place in the facility.
Travis Dillard is a business consultant and an organizational psychologist based in Arlington, Texas. Passionate about marketing, social networks, and business in general. In his spare time, he writes a lot about new business strategies and digital marketing for SEO Thugs.