Although in my head I like to be organized I find in my life it does not usually turn out that way. I come up with a new way for organizing many things whether it's my closet or my desk and inevitably in a month it is back to the dismal stage of complete chaos.
Recently I have found the easiest way to organize my yarn and supplies for how I'm functioning at the moment as follows. Right now I am doing a lot of crocheting in front of the TV and computer so although my craft room is where I keep most of my supplies my most used items are now downstairs in the living room. The thin yarns that I don't use as frequently or are not currently intended for a project I have stashed away upstairs in the craft room. Along with the knitting needles I inherited from my Nana when my mom cleaned out her craft room.
As for the currently in use supply I have 2 Trader Joes bags stashed behind the couch. One has never used skeins and the other has partially used skeins. There is also a smaller brown paper sac with my scrap pieces of yarn (only several inches) which I someday home to use as stuffing for other stuffed animal projects. Next I have a box on our organizing shelves that will someday go in their rightful place in the kitchen. For now it is in the living room. One cubby has a box that holds finished hats in the back that are for sale on etsy and in the front are the most used skeins or at least I plan on using them next. The order in which I do my projects changes frequently. I also have another box that holds my jewelry supplies and buttons and the smaller bows and such hat are finished.
While I know where things are mostly I would not say that it is organized well but that it is working for the moment. I find it best (from the organization for those with ADD book) not to be the most organized possible but to make it easiest for me to put things in a designated place. If I have to walk upstairs to my craft room to put it away I'm likely to leave it somewhere out and annoying but if I have a designated place in the room I'm working in most I will likely put it where it goes eventually.