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Why it’s important to create the perfect Warehouse Layout Design

Creating the perfect warehouse layout design requires carefull planning when running an effective and efficient business. If done incorrectly you may find it actually costs your business more money.

warehouse layout design

This space needs to be efficiently allocated to receive merchandise. Space should be allocated for goods receipts, order preparation, order loading and shipping, order picking and packing, order assembly, and also to the warehouse back office.

In a well-organized warehouse merchandise can be picked up and put away quickly and easily. One technique is segregating the warehouse into different zones or bins and ranking them. This way employees can ensure that merchandise in certain zones or bins need to be picked first and also put away first.

Another consideration of good warehouse layout is determining whether a bin or slot is fixed or floating. Merchandise to be stored in fixed slots or bins are pre determined and rarely changes where as with floating bins, merchandise can be stored on a need basis. A well optimised layout also helps employees to ensure on time bin replenishment to make sure the warehouse has optimum space utilization, reduce storage costs, and improve employee efficiency. So what should should you consider when it comes to desiging a warehouse?

Draw up Objectives

When drawing up plans for a state-of-the-art warehouse layout design make sure you include some main objectives and KPIS `to help increase business profits, increase labour productivity, efficient space utilization, reducing storage costs, or ultimately providing better customer service. 

Collect Information

Ensure that you gather information about the space allocation for merchandise receiving put away, loading, shipping, truck yard, office etc. This will give you a quick insight 


Once the relevant information is collected make time to analyze the information. Check that the warehouse layout meets the set objectives. If it doesn’t then you need to revise the plan to make sure it does.

Create Plan

After the layout design meets the set objectives, you will need to create a plan of implementation. A plan utilizes the information from the analysis, collected information and set objectives. A good plan should first show the big picture of a warehouse, indicating all-important tasks to be performed. These tasks are then subdivided into sub activities to be carried out. Also, necessary resources are allocated to each activity. 

 Increasing warehouse space

It is not an easy task to change or expand the existing warehouse. It costs both time and capital for the organization.

Here are some basic steps for optimizing the use of available storage space.

  • Office can be set somewhere else if possible they shouldn’t be in the warehouse itself
  • Return or discard any outdated, expired, damaged and defective items.
  • Store Empty pallets on the racks built over the doors or outside the warehouse if there is space.
  • Don’t store unnecessary material or junk in the warehouse use any space available efficiently.
  • Every centimetre in the warehouse should be effectively used. Any activities or tasks that can be performed out of the warehouse should be moved out.
  • Keep the inventory levels to minimum, still achieving service levels.
  • Ensure that slots are allocated as per the size, weight, and height of the merchandise. Product should correctly fit the slot, without wasting any space horizontal or vertical space.
  • Make use of wall space available above the doors, walls, load, aisles, space above works and pick areas, and above docks. 

If you are looking for a reputable logistics company to aid you in your warehouse design, check out the website of Gideon Hillman Consulting here.

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