I have 5 of those 40 drawer cabinets similar to what Harbor Freight sells. I bought them back in the 80s so their frames are metal. They are sitting on a shelf in my closet. Each cabinet is somewhat categorized. For example, one holds the most common value resistors and capacitors. I sometimes use the dividers to put 2 values in a single drawer. The drawers hold through hole parts and SMD parts. For example, if I order 100 SMD 100 nF caps from Mouser I take them out of the bag, cut them into strips of 20, and put them in the drawer with the 100 nF through hole parts. Another cabinet holds the most common semiconductors. I put SMD parts in the same drawer as through hold parts, ex: 2N3904 and MMBT3904 are in the same drawer.
For the less common parts I have twelve 10 x 8 x 6 cardboard boxes that I put the Mouser and DK bags in. Again, they are somewhat categorized, resistors in one box, caps in another, semiconductors another, etc. Everything in the cardboard boxes is in Excel spreadsheets. The boxes are subdivided with large bags. As an example, through hole caps are in one large bag in numerical order and SMD caps are in a different large bag. The spreadsheet location column tells where the parts are. Through hole caps are in 2-1 and SMD caps are in 2-2. The first digit is the box number and the second digit is the bag number. Since I have so many parts, some items like semiconductors are in 2 boxes as 1 box will not hold them all.
There are 9 separate spreadsheets, resistors, caps, semiconductors, inductors, etc. When I order parts it is because I am either low on stock or need them for a current project. When they come in if they are for low stock, they immediately go into either the cabinets or boxes. If they are put in the boxes, I update the spreadsheet with the new quantity. If they are for a current project, they remain in the shipping box until the project is finished. They are then put in either the cabinets or boxes.
The cabinet parts are not in the spreadsheet as those drawers have remained pretty consistent over the last 40 years. I have more or less memorized in which cabinet those ~250 parts are in. If a current project uses common value parts I always check the cabinets to see how many I currently have. If more are needed I just add them to the current project order.
I did not keep spreadsheets for my inventory until about 20 years ago. I found I was frequently ordering parts that I already had on hand in the boxes. After that happened a few dozen times I implemented the spreadsheets. They are all in one folder on my computer and I am diligent about keeping them up to date. The spreadsheet shows all relevant data, i.e. Vendor part number, Manufacturer part number (especially important for DK orders), Description, Size (package), Wattage, Quantity, Location, Purchase Date, etc. Obviously different parts require different column headings.
This system has worked well for all these many years. I have told my wife if something happens to me, who to call to come get everything. She also knows that they need the spreadsheets to help identify where everything is.
Sorry this is so long but I wanted to explain it in detail.