The traditional perception of a warehouse often involves a vast area lined with shelving systems holding inventory. However, a warehouse encompasses far more than just rows of racks. There are multiple approaches to organising and arranging warehouse space. Initially, a warehouse begins as a blank volume—an empty three-dimensional shell. Portions of the floor are designated for various categories of goods based on their physical traits and usage frequency, and decisions must also be made regarding how much vertical space will be utilised.
The size, weight, shelf life, and environmental sensitivity of stored items shape the decisions. Some goods are required regularly, while others are accessed infrequently. Restricting storage to floor-level access increases visibility but leaves overhead volume underutilised. Conversely, stacking vertically with racking systems demands greater investment, particularly in high-reach handling tools, and results in decreased visibility.
The fundamental consideration is whether the configuration aligns with operational demands. A sensible strategy is to begin with a low-cost, straightforward setup and progressively enhance and automate based on actual operational needs. There is no universal solution for warehouse layout.
A widely adopted warehouse structure is the single-deep pallet rack system. It allows direct access to each pallet, as none must be moved to retrieve another. All rack levels can be reached with forklifts, narrow-aisle vehicles, or order pickers; however, the lowest level is most accessible and can be served by pallet jacks for full pallets or carts for individual box retrieval.
Many facilities rely solely on this model. Nonetheless, even within this framework, there are options for inventory placement. Items can either occupy fixed slots consistently or be assigned locations dynamically as they arrive—referred to as 'floating' or 'chaotic' storage. Facilities often opt entirely for one method—either fixed or dynamic storage.
When high-turnover items are placed in randomly assigned slots, they tend to be dispersed across the warehouse, only to be collected again later. Creating a dedicated area for such items simplifies flow. This not only improves the handling of that specific product but also reduces congestion when managing other stock. Further enhancement could bypass the racking system altogether by cross-docking the item—from an incoming truck directly to an outbound shipment. Ultimately, the most streamlined scenario is to eliminate the warehouse stage entirely and ship straight to production from the supplier.
There are various reasons why only one storage method is used, even when a combination would be more efficient. Often it is due to the warehouse manager's limited experience—being familiar with only one system and reluctant to explore alternatives. Another common constraint is that the Warehouse Management System (WMS) may support only a single method for handling inventory.
Effective warehouse management hinges on visibility. Surprisingly, a walk through many warehouse areas often reveals that even basic visual cues are neglected. Clear visibility is critical for maintaining efficiency, productivity, and safety. Yet common issues frequently observed include:
Again, there's no universal blueprint, as items like steel rods require vastly different storage methods than, say, paint cans or electronics. However, some foundational practices consistently prove valuable:
Most warehouses are large, open spaces supported by a network of columns. A simple yet effective method to improve communication with forklift operators is to label all sides of these columns with their grid positions. This grid can be implemented even before a digital inventory system is deployed.
However, in sections where racks are already labelled, labelling columns can cause confusion, too. In such cases, columns should either be left unlabeled or clearly differentiated from rack labels.
A widely accepted and intuitive method for rack labelling includes four coordinates: aisle, rack, level, and bin:
For example, a bin labeled as 3B-2c1l refers to: aisle 3, rack 3B, 2nd bay (column), 1st level.
Dock labels are especially helpful when doors are open, as they aid forklift operators in avoiding mistakes. Unfortunately, dock numbers are often obscured when the door is raised. Labelling the door itself is common but not ideal. A more reliable approach is to place the number where it's always visible—such as on the door's side.
Clearly marked zones are vital, particularly for floor-stored or block-stacked goods. Lines painted on the floor help designate storage areas and maintain clear travel paths. Often, labels for these zones are painted or taped directly on the floor. This approach, however, is ineffective: such markings quickly wear out, become obscured, or are hidden beneath pallets.
An improvement is to suspend signs from the ceiling structure above the zone. However, signs that swing in airflows or are only visible from specific directions have limitations. A more robust and visible method involves mounting triangular signs rigidly above racks or rafters, providing multi-directional visibility.
A Warehouse Management System (WMS) is a digital platform that facilitates control and coordination of warehouse operations. It manages the reception, storage, and retrieval of stock, optimizes picking and shipping workflows, and offers alerts for restocking or identifying slow or obsolete items.
Modern WMS solutions are mobile-friendly and compatible with barcode and RFID scanning. Barcode scanning has long been standard in many warehouses, and it is used for tasks such as linking serial numbers with orders. Often, the necessary infrastructure is already in place. In practice, handlers scan both the item and the location barcodes while placing goods, and the WMS logs the combination in a cross-reference table. This allows precise tracking of item locations (read more about: Handheld process - Identify assets with your smartphone).
While barcode scanning remains prevalent, it is increasingly being complemented—or replaced—by radio-frequency identification (RFID), offering faster and more flexible auto-identification capabilities.
What is warehouse visibility, and why is it important?
Warehouse visibility refers to the ability to clearly identify, locate, and track inventory and storage areas within a warehouse. It ensures efficient workflows, reduces errors in picking and stocking, and enhances safety for personnel by maintaining clear signage, logical labelling, and organized spaces.
How can I improve visibility in my warehouse without large investments?
You can significantly enhance visibility through low-cost measures such as implementing consistent labelling systems, using large and legible location signs, painting clear zone boundaries on the floor, and ensuring every storage position has a visible address. Even simple visual improvements can lead to major gains in efficiency.
Does warehouse visibility affect digital tracking systems like WMS or RFID?
Yes. While Warehouse Management Systems (WMS) and RFID improve digital tracking, they still depend on physical visibility for smooth operations. Clear, standardised visual labels and logical location structures support scanning accuracy, reduce confusion, and strengthen the effectiveness of these digital tools. You can also improve visibility with PTL systems.
Clear warehouse visibility is essential for maintaining efficient, safe, and organised cargo handling. From logical labelling and consistent addressing to structured storage zones, visual clarity directly supports operational success. In the second half of the process chain, particularly during picking, technologies like pick-to-light systems enhance visibility even further. By guiding workers with illuminated indicators at specific storage locations, pick-to-light reduces errors, speeds up order fulfilment, and supports high-throughput environments. Integrating such visual aids strengthens both manual and digital inventory workflows, ensuring accuracy and responsiveness across warehouse operations.
Delve deeper into one of our core topics: Real time location systems
RFID scanning uses radio-frequency identification technology to automatically identify and track tags attached to items. Unlike barcodes, RFID does not require a direct line of sight and can read multiple tags simultaneously, even through packaging. This allows for faster, more accurate inventory management in warehouses. RFID improves visibility, reduces manual errors, and supports real-time data collection. It is especially useful in high-volume or high-velocity environments where efficiency and accuracy are critical.(2)
References:
(1) M. Baudin & T. Netland (2023): Introduction to Manufacturing. An Industrial Engineering and Management Perspective. Routledge.
(2) Finkenzeller, K. (2010). RFID Handbook: Fundamentals and Applications in Contactless Smart Cards, Radio Frequency Identification and Near-Field Communication (3rd ed.). Wiley.