Efficient warehouse layout optimisation can reduce operational costs, speed up processes, and improve customer satisfaction. Whether you operate a small warehouse for your eCommerce business or a large logistics centre, proper space optimization is key to productivity.

In one of our previous guides, we explained why efficient storage is essential for eCommerce operations. If you’re a larger company working in B2B and managing your own warehouse space, our new guide brings you the best strategies for warehouse optimization.

Assessing the Current Warehouse Layout Optimization

The first step in optimization is evaluating your current setup, mainly how your space is being used. Ask yourself: Can unused space be minimized? How fast does inventory move through the warehouse? Are workstations optimized?

It’s important to maximize space usage and organize it to make navigation easy for staff. Optimization also means placing fast-moving inventory closer to loading/unloading zones for quicker processing.

Structuring the Warehouse Layout

Clearly define warehouse zones: receiving area, storage, packing and distribution, and returns. Use the receiving area for incoming goods inspection. Organize the storage area based on usage frequency. Place the packing and distribution zone near the exit to reduce unnecessary walking.

Don’t forget vertical space. If possible, use pallet racking to increase capacity by up to 50%. Mark zones with clear signage and label products for easy identification.

Inventory Management Optimization

Use the ABC inventory analysis method. Category A items – your highest-demand products that generate around 80% of revenue – should be stored close to the packing and distribution zone. Category B items (about 15%) go in moderately accessible areas and Category C items (about 5%) in the least accessible zones.

Also, consider FIFO and LIFO methods. FIFO (First In, First Out) is ideal for perishable goods like food and pharmaceuticals. LIFO (Last In, First Out) is used in industries without expiration concerns (e.g., construction materials).

Automate your inventory processes where possible. A quality Warehouse Management System (WMS) can simplify tracking, reduce manual errors, and save resources.

Implementing Technology and Automation

Warehouse Management System (WMS)

A digital WMS improves inventory accuracy and speeds up order fulfillment. Popular WMS platforms include: SAP EWM, Oracle WMS, and Odoo. Learn more about the WMS system in our blog post.

Barcode and RFID Technology

These tools enable faster identification and tracking of inventory. RFID scanners can reduce inventory management errors by over 90% and improve order accuracy significantly.

Automated Warehousing and Robotics

Using AGVs (Autonomous Guided Vehicles) and robotic arms speeds up handling processes. Companies like Amazon and Alibaba use robotics to optimize their warehouse space and efficiency.

Boosting Warehouse Safety and Efficiency

Safety is a top priority. Installing CCTV cameras can deter theft and enhance movement monitoring. Additionally, restricted access for authorized personnel improves security.

Ensure the aisles between racks are wide enough for forklifts and transport carts. As mentioned earlier, signage and labels help reduce the risk of accidents. Finally, train your staff in material handling, safety protocols, and tech usage to enhance performance and reduce mistakes.

Key Strategies for the Warehouse Layout Optimization

The most crucial element in warehouse optimization is understanding your processes. Analyze your needs and design your layout based on item frequency and flow. Apply FIFO and LIFO where applicable for smarter stock management. Depending on your budget, implement smart tech like WMS, and strengthen safety with surveillance and controlled access. If you need more information or help with storage, let us know.