After decades of trial and error my system has evolved to separate boxes for flannel, interfacing and specialty batting (Insulbrite), batiks, civil war, 1930's, two separate designers,solids, Christmas, I Spy, and backings. The sizes of these boxes vary according to importance in my collection. All fit on a shelf unit.
Next I have three shallow boxes of fat quarters arranged by color. As someone else mentioned, some fabrics have so many colors that those are grouped separately.
My homemade precuts are five and six inch squares; 1.5 and 2.5 inch strips; misc strips 2.0 to 4.5 inches; and a separate box of neutrals containing most of the above sizes. These precuts are in transparent blue boxes as a visual key.
This year I added transparent green shoeboxes for scraps awaiting the final decision. This way I can quickly sort and store the scraps neatly as I cut out a quilt. When time allows, I can go back and select items for a quick project or add to the precuts.
Miscelleous yardage is folded lenthwise fold to selvadge edge and wrapped around a 6.5 inch ruler. These folded pieces are stacked vertically in a large shallow box to I see the entire flow by color groups.
I have been advised by the sewing machine dealer to always use a double piece of fabric on the throatplate when starting and stopping sewing. The Bonnie Hunt system of leaders and enders fills the bill. Therefore, sometimes I am sewing two odd-sized pieces together, making a four patch block, or doing half-square triangles. This afternoon I trimmed several items while quilting in our small group. It was neat to discover some items I could combine immediately for a medallion for a small quilt.
Best wishes to you on your adventure. Many thanks to each person who contributed to this thread. Each time this topic is discussed, I learn new things which make my playroom more fun and attractive.