Warehouse Layout Tips For Optimization

Virginia Miller

August 21, 2024

In this article

Order fulfillment is the key to success when it comes to eCommerce companies. One of the most critical factors in your long-term performance is the pace and precision of filling orders. If you want to be effective, you must properly store and arrange your inventory to be selected, packed, and delivered with the utmost quality, pace, and accuracy. It is where warehouse optimization steps in.

Warehouses come in a variety of sizes and forms, and many are used for particular purposes. Cold storage warehouses, for example, excel in temperature-controlled processing for perishable items, so the procedures and practices vary from those of a warehouse relating to a particular retail company, an electronic goods warehouse, or a commercial storage warehouse. As a result, there is no one-size-fits-all warehouse layout optimization solution. Nonetheless, there are several common steps in the method to follow and best practices to follow.

Warehouse optimization improves customer loyalty and experience by using time, space, and resources in a warehouse more productive through efficiency and meticulous planning. Warehouse optimization is not a method that you should undertake hastily. Before you can refine your warehousing layout and operation, you must first recognize what you're dealing with and its limitations. After you've identified your shortcomings and unmet needs, you can get into the specifics of improving your new warehouse layout.

Recognizing that you could improve the warehouse operations is just half the struggle: the next move is to examine the current state and determine concrete actions to improve. Every warehouse is unique, but there are some things you can do straight away to start making a significant improvement in your operations.

Optimizing Your Warehouse Layout for Maximum Efficiency

Assess Your Available Space

The first step in improving warehouse layout is performing a thorough assessment of the available space. Consider the building's HVAC, lighting, doorways, loading bays and existing racks. Ensure the space meets the environmental and storage needs of your inventory.

Audit and Categorize Your Inventory

Conduct an inventory audit to identify specific storage requirements. Establish storage zones based on factors like:

Climate needs
Racking/shelving needs
Weight and dimensions
Turnover rate

Create a Logical Layout

Divide your warehouse into labeled sections, aisles, rows and bins. Place fast-moving goods near packing stations to minimize picking time. Assign storage locations strategically based on inventory velocity and demand.

Incorporate Software and Analytics

Use inventory management software and data analytics to optimize product placement. Continually analyze the distance traveled and frequency of orders to adjust layout when needed. This boosts picking efficiency over time.

Regularly Re-Evaluate and Improve

Warehouse optimization is an ongoing process. As inventory changes, continually assess if your storage layout can be improved to save costs and better meet business needs.

Next article: How to Choose the Best Fulfillment Warehouse Locations Near Me

FAQs

What are the benefits of optimizing warehouse layout?

An optimized warehouse layout results in faster order fulfillment, lower labor costs, improved inventory accuracy, and more efficient use of space. It also reduces wasted movement and time spent by staff picking and packing orders.

How can I create inventory storage zones in my warehouse?

Divide your warehouse into labeled storage zones based on factors like turnover rate, climate needs, dimensions and weight. Place fast-moving goods near packing areas and use specific storage types like pallet racks for pallets.

How do I account for traffic flow when planning layout?

Analyze your order data to identify your fastest moving SKUs. Position these highest velocity items closer to sorting and shipping areas to reduce travel distance. Also designate wide aisles for busy routes.

How can warehouse management software help?

WMS software provides real-time inventory visibility and analytics on product velocity and placement. This allows you to strategically locate items based on frequency of orders and picking routes.

Should I modify my layout regularly?

Yes, continually reassess your warehouse layout over time as inventory levels, velocities and business needs change. This ensures it remains optimized as products and order volumes evolve.

What are some key metrics to track?

Key performance indicators include travel distance, pick time per order, inventory turns by location, and picking accuracy. Tracking these metrics helps identify improvement areas.