I just went through a major re-haul of my fabric. Actually I'm not finished but it's holiday time so I'm not going to worry about it.
I have all my large pieces- more than 1 yard each on one shelf. I have all my others less than 1 yard according to color, novelty prints on another, batiks on another, Christmas, etc.
I'm still looking for a home for some that don't fit in any specific category. I always seem to have this problem!
Then I have a plastic 6 drawer unit for my fq and charms etc.
I also agree with the others about not cutting it all up. You will have scraps sooner than you can think about it! :D
Good luck. I'm still trying to get organized but I'm not a very organized person!! lol