Implementing a new warehouse location scheme can be a time consuming and difficult task. First, a scheme must be designed and laid out on paper to fit the warehouse at hand. Next, each location, shelf and aisle must be physically labeled to match the diagram. Finally, maintenance must be done to ensure all labels are clearly legible long-term and any new locations are labeled in compliance with the location scheme to maintain warehouse efficiency.

Planning

The goal of your location scheme is to apply a consistent, logical workflow to your entire warehouse floor. This means that the aisles should be labeled in consecutive order, and that each shelf and individual location should also be labeled accordingly.

Many warehouses use a labeling scheme that looks like: XX-XX-XX-XX. The first set of numbers represents the aisle. The second set represents the section. The third set represents the shelf, and the fourth set represents the actual location on the shelf. You can also use alphabetical characters, although you should only use the alphabet to label areas where there are less than 26 options, such as shelves, because you know that there will never be more than 26 shelves in a single section of shelving. Otherwise you may have repeat characters that get confusing and will be detrimental to warehouse efficiency. Make sure you draw this out on a map so that you can find any unusual areas of your warehouse and create a contingency plan that works within your larger scheme. If you use zones, your location numbering sequence will need to include the zone as well.

Implementation

Once you have decided how your location scheme is going to flow, the next step is to actually label the locations. This can be the most challenging part because it is labor intensive and there is no simple way to get it all done at once. The best solution is often to hire a company that specializes in printing labels that can be applied directly to your shelf with a glossy finish to prevent damage over time. In addition, your computer system will need to be updated to utilize the new location numbers. After the location numbers have been input, they can be used with barcode scanners and other WMS tools. Special care should be taken to avoid keying errors during this process which can potentially disrupt warehouse efficiency.

Maintenance

Over time, labels can wear down or peel off and become unreadable. In addition, shelves may be replaced or added which require new labels. Your team should be able to keep up with maintenance as you do rolling inventory checks since your team members will be spot checking throughout the warehouse. Any labels that need to be fixed can be recorded and replaced as soon as possible to maintain warehouse efficiency. In addition, any new shelving areas should be added to your master plan and follow the existing location scheme.

With proper planning, a location scheme can revolutionize your warehouse efficiency. However, the planning process alone can take several months, and placing the labels throughout your warehouse can be time and labor intensive. Nevertheless, once the location scheme is fully in place, it offers access to better warehouse tools and it is simple to maintain.