- Zone: A section or area within a warehouse that’s separated from one another based on attributes such as package types, sales velocity, or warehouse activities
- Aisle: Parallel rows of products. The space between these rows will depend on many factors like the type of products you sell, their sizes, or the equipment needed to pick these items.
- Rack or Bay: A row of shelves stacked on top of each other where you store your products
- Shelf or Level: The layer of your racking system. Having multiple shelves on an inventory rack increases the number of products you can store in your warehouse.
- Bin: The smallest unit of space where your items are stored
Your warehouse location numbering will reflect all levels of your warehouse, starting from the largest to the smallest levels.
For example, if you set up the 5 inventory levels, your bin location will be Zone-Aisle-Rack-Shelf-Bin. Location 1-B-03-04-05 means your item is at Zone 1, Aisle B, Rack 03, Shelf 04, and Bin 05.
These item “coordinates” are unique to make sure your warehouse staff can always find and pick the correct items.
Next, let’s investigate how retailers can use bin location during warehouse operations.