Guide to Moving Warehouses

Chapter 3: Warehouse Layout

In this chapter, we’ll examine how to set up a warehouse layout, specifically how to organize aisles, racks, levels, and bins and keep your new warehouse efficient.

How Does Warehouse Shape Impact Layout?

There are three main warehouse shapes:

• L-shaped—Layout resembles an ‘L,’ with two perpendicular sections. Useful for separating warehouse operations.
• U-shaped—Resembles a ‘U,’ with entry and exit on the same side, facilitating easy access and circulation.
• I-shaped—Linear design with straight pathways. Ideal for streamlined processes with a straightforward flow.

A good warehouse layout shape has the following benefits:

• Speeds up fulfillment—An efficient warehouse layout makes it easier and quicker for workers to pick, sort, and ship orders.
• Reduces inventory errors—As inventory is easier to access and manage, fewer mistakes are made.
• Happier customers—A well-organized warehouse will result in fewer order errors, meaning fewer customer returns.
• Improves inventory monitoring—Tasks like cycle counts become significantly easier.
• Reacting to supply and demand changes—It is easier to reorganize space according to demand changes.
• Improves efficiency—Designing an efficient warehouse layout will positively impact all other aspects of your business.
• Reduces costs—The above benefits directly impact business costs.

Conversely, a bad warehouse shape reduces productivity and increases the likelihood of damaged and destroyed inventory.

Best Warehouse Layout Practices

There are five key things to consider:

1. Inventory storage.
2. Racks.
3. Levels.
4. Aisles.
5. Movement and access.

Best Practices for Inventory Storage

Before designating space for inventory storage, it is vital to know your total storage capacity. This must be calculated before you start using your new warehouse and ordering inventory from suppliers.

Best Practices for Warehouse Racking

Warehouse racks are structures that use levels to efficiently organize and store inventory. If you must invest in new racking, determine if it is possible to uninstall the racking in your old warehouse and reuse it in your new warehouse.

Best Practices for Levels

Levels are the different vertical spaces in a racking unit. Each level can house multiple bins. Stacking vertically with levels is a best practice for increasing space.

Best Practices for Aisles

Aisles are often laid out in a similar fashion to grocery stores. A good practice for planning aisles is to ensure that they are straight. Ideally, avoid having corners in your aisles. Aisles should also be wide enough for large equipment, such as forklifts.

Best Practices for Movement and Access

Your warehouse layout should avoid ‘motion waste,’ where time is wasted by workers traveling to and from things—it is a major contributor to inefficiency.

How to Strategically Place Bins in a New Warehouse?

Bins are the designated containers on level racks where items are placed. The area you designate as a bin doesn’t have to be on a level on a warehouse rack.

What Are the Different Types of Bins?

The three most common types of warehouse bins are:

1. Picking bins—Used to organize and store items for easy access during the picking process.
2. Receiving bins—A place where you can put received inventory that just arrived at the warehouse.
3. Temporary bins—Can be used for a wide variety of purposes.

What Are Primary Bins and Non-primary Bins?

• Primary bins—These are the easiest-to-access bins where workers should pick inventory.
• Non-primary bins—Usually stored on levels above primary bins that are harder to reach.

Bin Capacity

When planning your new warehouse layout, it is good to know the exact capacity of every bin. For example, depending on the item, can a bin hold 5 or 5,000 items?

Why Are Naming Conventions Vital for Racks, Aisles, Levels, and Bins?

Naming conventions are often simple alphanumeric combinations used to identify a location. This is particularly beneficial if you have a large warehouse or if an order item is located in an area staff don’t usually travel to.

How to Keep a New Warehouse Efficient? 4 Ways

1. Lighting—Good lighting improves picking efficiency.
2. Labeling—Invest in clear labeling and signage for easy navigation.
3. Worker Comfort and Safety—Ensure the environment is safe and comfortable for workers.
4. Always Work Towards Improvement—Identify bottlenecks and seek to optimize layouts.

Key Points

• Warehouse layout directly impacts how efficient your warehouse is and has a knock-on effect on many other areas of your business, so it must be taken seriously.