Warehouse location systems

A well-designed warehouse location naming system helps your team quickly locate products, reduces picking errors, and speeds up order fulfillment. This guide covers best practices for designing and implementing storage location identifiers.

What is a warehouse location system?

A warehouse location system (also called bin locations, shelf locations, or warehouse addressing) assigns unique identifiers to every storage position in your warehouse. These identifiers are used throughout your fulfillment process to direct pickers to the exact location of each product.

Common location naming conventions

Hierarchical format

The most common approach uses a hierarchical structure with multiple components:

Format: AISLE-RACK-SHELF-BIN

Example: D-12-4-2

  • D = Aisle D
  • 12 = Rack 12 within aisle D
  • 4 = Shelf 4 on rack 12
  • 2 = Bin 2 on shelf 4

Alternative formats

Different warehouses use variations based on their layout:

  • Zone-based: Z1-R05-S3-B12 (Zone 1, Rack 5, Shelf 3, Bin 12)
  • Coordinate system: A3-B2 (Row A3, Column B2)
  • Compact notation: D12.4.2 (same as hierarchical but with dots)
  • Simple sequential: 1001, 1002, 1003 (simple numbering)

Design principles

Be consistent

  • Use the same format throughout your entire warehouse
  • Maintain consistent separator characters (dashes, dots, or none)
  • Keep the same number of digits/characters in each component

Make it scalable

  • Leave gaps in your numbering sequence for future expansion
  • Number aisles/racks with room to add new ones (A, B, C, D vs A, C, E, G)
  • Consider future warehouse layout changes

Keep it readable

  • Use letters and numbers that are easy to distinguish (avoid O/0, I/1, Z/2)
  • Keep location codes short enough to read at a glance
  • Consider using all caps for consistency

Optimize for picking routes

  • Number aisles in a logical flow (left to right, front to back)
  • Number positions within aisles to match your picking path
  • Consider separate zones for different product categories or fulfillment speeds

Physical implementation

Label placement

  • Place location labels at consistent heights on shelving
  • Ensure labels are visible from picking cart perspective
  • Use durable label materials that won’t fade or peel
  • Include both human-readable text and scannable barcodes

Signage

  • Install aisle markers visible from warehouse floor
  • Use end-of-aisle signs to identify rack ranges
  • Consider floor markings for main warehouse navigation
  • Add wayfinding signage for complex layouts

Integration with Scanpacker

Once your location system is implemented:

  1. Assign storage locations to product variants in Scanpacker
  2. Locations display during order fulfillment to guide pickers
  3. Optional location scanning provides verification during batch picking
  4. Use location data to optimize pick routes and warehouse organization

Resources

External resources for warehouse location system design: