Warehouse: Setup & Labeling Best Practices

🏢 Warehouse Layout: Key Zones

• Receiving Area
  • Dedicate a clearly marked space for inbound shipments
  • Ideally placed near the loading dock
  • Should not double as a long-term storage area
• Storage & Picking Area
  • Maximize rack usage with fast-moving items near the processing zone
  • Use vertical space efficiently
  • Reserve bottom shelves for bulk or slower-moving items
• Packing & Shipping Area
  • Allocate a space for order checks, labeling, and handoff to carriers
  • Ensure smooth pick-pack-ship flow
  • Keep the packing station clear; label-ready products should be staged separately
• Free Zone (Buffer Area)
  • Acts as overflow for peak periods
  • Can later be repurposed into new storage or processing space
• Returns & Damaged Goods Area
  • Keep these sections small and isolated to avoid traffic bottlenecks

🏛️ Warehouse Labeling: Principles & Efficiency

• Labeling Hierarchy Example: Aisle-Rack-Level-Position (e.g., 01-AA-1-03)
  • Aisles numbered: 01, 02, 03...
  • Racks coded: AA, AB, AC...
  • Levels: 1 (bottom), 2 (middle), 3 (top)
  • Positions: 01–04 per level
• Labeling Guidelines:
  • Use sequential codes mixing letters and numbers
  • Add color coding for levels (e.g., red for bottom, yellow for middle)
  • Ensure visibility and consistency across all shelves
  • Use materials suitable to your budget: adhesive, magnetic, or metal
• Place directional arrows on labels if needed

🚜 Efficient Shelving & Product Placement

• Place high-turnover items at eye level near the processing area
• Store slow-moving or bulk stock higher or further from main aisles
• Keep aisle width sufficient for two-way traffic if needed

🧰 Picking Routes: Optimization Tips

• Design routes for one-way flow to minimize backtracking
• Group picks that are located close together
• Separate online and wholesale order sessions
• Ensure routing can be followed by any worker (no memorization required)
• Use even/odd aisle logic for clarity (e.g., IKEA-style)

⚠️ Final Notes

• Small setup decisions significantly impact labor costs and fulfillment speed
• Plan for flexibility: Free zones and modular racks help scale operations
• Consistent labeling and thoughtful routing enable faster training and fewer errors