How To Layout Your Warehouse Locations

Why is Warehouse Layout important?

If you’re running a business that involves storing and shipping products, then the layout of your warehouse is crucial to the success of your operations. Poorly organized storage can lead to wasted time, effort, and money. In this article, we’ll discuss the most important aspects of warehouse layout and offer practical tips to optimize your storage spaces.

The layout of your warehouse affects many aspects of your operations, including:

1. Efficiency

A well-designed layout can save time and effort in product handling, order picking, and shipping, which translates into faster turnaround times, higher productivity, and lower costs.

2. Safety

A poorly designed warehouse can increase the risk of accidents, such as slips, falls, collisions, and injuries from heavy equipment or falling objects.

3. Space Utilization

An efficient layout can maximize the use of available space, which is especially important if you have limited storage capacity or need to accommodate a growing inventory.

4. Customer Satisfaction

A fast and accurate order fulfillment process can improve your customers’ experience and increase their loyalty.

Safety stock is an additional inventory that manufacturers keep to mitigate the risks of stockouts. It is the buffer inventory that manufacturers keep to ensure that they can fulfill customer orders, even during unexpected demand spikes or supply chain disruptions. Safety stock management is crucial for manufacturers because it helps them maintain a high level of customer service and avoid lost sales.

Steps to Layout your Warehouse

Here are the steps to follow to create an effective warehouse layout:

7 Steps to layout warehouse

1. Define Your Objectives and Constraints

Before you start designing your warehouse layout, you need to clarify your goals and limitations. Ask yourself these questions:

  • What types of products do you store?
  • What are the dimensions and weight of your products?
  • How often do you receive and ship products?
  • What is your peak season?
  • What is your budget for equipment, shelving, and other storage solutions?
  • What are the safety regulations and standards that you need to comply with?

2. Measure Your Space

To design an optimal warehouse layout, you need to know the exact dimensions and features of your space. Use a tape measure, laser distance meter, or floor plan software to get accurate measurements of:

  • Ceiling height
  • Floor area
  • Columns, beams, and other obstacles
  • Doors, windows, and loading docks
  • Utilities, such as electricity, water, and ventilation

3. Plan Your Storage Zones

The next step is to divide your warehouse into storage zones based on your products’ characteristics, frequency of use, and handling requirements. Here are some examples of storage zones:

  • Bulk storage: For large, heavy, or bulky items that don’t require frequent access, such as pallets of raw materials or finished goods.
  • Rack storage: For smaller items that can be stored on shelves or racks, such as boxes, cartons, or containers.
  • Pick zones: For products that need to be picked and packed for orders, such as small parts, tools, or accessories.
  • Shipping and receiving zones: For loading and unloading trucks, inspecting products, and managing paperwork.

4. Select Your Storage Solution

Once you have defined your storage zones, you need to select the appropriate storage solutions that match your products’ requirements, volume, and frequency of use. Here are some common storage solutions:

  • Pallet racking: For large, heavy, or bulky items that can be stored on pallets and accessed by forklifts or pallet jacks.
  • Shelving units: For smaller items that can be stored on shelves or bins and accessed by hand or with a ladder.
  • Mezzanine floors: For expanding your storage capacity vertically and creating additional workspace.
  • Conveyor systems: For automating the movement of products between storage zones or production lines.
  • Automated storage and retrieval systems (ASRS): For storing and retrieving products automatically using robots or cranes.
  • Vertical lift modules (VLM): For storing small parts in a compact, vertical system that maximizes space utilization and improves picking accuracy.

5. Design Workflow

Once you have chosen your storage solutions, you need to plan how to move products through your warehouse efficiently. This involves designing your workflow, which includes:

  • Receiving products: Plan where to receive incoming products, how to inspect and verify them, and how to record them in your inventory management system.
  • Storing products: Plan how to transport products from the receiving area to their designated storage zones, how to label and organize them, and how to ensure their accessibility and safety.
  • Picking products: Plan how to retrieve products from their storage zones, how to package them for shipping, and how to verify their accuracy and quality.
  • Shipping products: Plan how to transport products from the picking area to the shipping area, how to verify their destination and mode of transport, and how to generate and print shipping labels and documents.

6. Test and Adjust Layout

Before you implement your new warehouse layout, you should test it with a pilot project or a simulation software to identify any potential issues or bottlenecks. You can also ask for feedback from your employees or customers to see if the layout meets their needs and expectations. If necessary, you can adjust your layout by changing the placement of storage solutions, modifying your workflow, or adding new features.

7. Maintain Layout

Once your new layout is in place, you should establish a maintenance schedule to ensure that your storage solutions are clean, safe, and functional. This includes inspecting your racks, shelves, and other equipment for damage, replacing worn or broken parts, and training your employees on how to use and maintain the storage solutions properly. You should also review your layout periodically to see if it still meets your business goals and to identify any opportunities for improvement.


In summary, the layout of your warehouse is a critical factor in the success of your business. By following these steps and guidelines, you can create a warehouse layout that maximizes efficiency, safety, space utilization, and customer satisfaction. Remember to define your objectives and constraints, measure your space, plan your storage zones, choose your storage solutions, design your workflow, test and adjust your layout, and maintain your layout. With the right layout, you can optimize your operations and grow your business.

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