How to Do Warehouse Location Planning?

Location planning is not about drawing a layout.

It’s about making the warehouse stable, controllable, and efficient.

1. Classify SKUs First

Group SKUs by sales into A / B / C / D:

• A: High frequency → drives efficiency

• B: Medium → ensures stability

• C/D: Low → optimize space

👉 Different flow = different location

2. Define Functional Areas

Not by space, but by operations:

• Picking area: high-frequency items

• Storage area: bulk inventory

• Staging area: inbound & replenishment

• Exception area: problem orders

  
  

3. Fix Locations

Each SKU must have:

• A fixed picking location

• A fixed replenishment source

❌ No more “put wherever there’s space”

4. Match Location Type

Based on volume + size:

• Large & fast → pallet location

• Small & fast → shelf / bin

• Slow → storage area

  
  

5. Set Replenishment Rules

Define clearly:

• When to replenish (low stock trigger)

• How much (3–5 days stock)

• How (storage → staging → picking)

👉 All operations must be scanned

6. System-Driven Execution

• Putaway: system assigns location

• Replenishment: system assigns path

• Picking: follow system route

👉 No scan = no operation

✅ Key Takeaway

Location planning is about:

👉 Fixing positions, controlling actions, and standardizing execution