Location codes and zoning: faster counts and faster picking

Without location numbers, finding goods depends on memory, and so does counting. A long-serving employee carries a map in his head, while newcomers and outside counters are lost. When that employee takes leave, warehouse efficiency halves. Location codes and zoning are not the preserve of large automated warehouses. A modest trading warehouse can set them up in a few days, and recoup the effort at every later count and every pick.

Zone first: one job per area

Start from the floor plan and divide the warehouse into functional zones, each with a single job and a letter. The point of zoning is a fixed home for goods: when the same kind of goods is always in the same area, finding and counting follow a pattern.

• Receiving buffer: new arrivals wait here until checked and put away.
• Main storage: can be split further by speed of turnover or by product category.
• Picking and dispatch: close to the exit, where goods due to leave are gathered.
• Returns and pending: customer returns, damaged goods and items awaiting inspection are kept apart.
• Quarantine: expired goods, goods with quality problems and goods of unclear ownership.
• Valuables or hazardous goods: locked, with restricted entry.

Put fast sellers near the exit, heavy goods on lower levels and light bulky goods higher up. These principles make picking easier and safer.

Coding racks and locations

A coding rule should be simple enough for a newcomer to read after one look. A common form is zone-rack-level-position, for example B-05-3-02, meaning zone B, rack 5, level 3, position 2.

Follow these principles when coding:

• Use a fixed number of digits with a leading zero, 05 rather than 5, so that sorting stays in order.
• Number from the entrance, in the direction of walking, near to far and left to right.
• The code stands for the position only and carries no item information, so the same position can hold different goods over time.
• Leave spare numbers, so that new racks do not force a complete renumbering.
• One location has one code, and one code points to one location.

Printing labels and loading them into the system

A code on paper is not enough. Print it as a label and fix it to the beam or upright of the rack. The label should be large enough to read as you walk past, with low-level labels near the floor and high-level labels tilted down towards the aisle. You may add a barcode so that a phone or handheld can scan it later. Even if you do not scan yet, print the human-readable code clearly first. Once the labels are up, someone should check them each month and replace any that have fallen off or been covered.

At the same time load a location list into your system (1C, Excel or ERP): location code, zone, type (storage, picking, quarantine), capacity or size, and whether it is active. When goods are received, record the location they go to, and when goods move, update the location straight away. Only then can each stock quantity in the system be tied to one definite place on the floor.

How location codes help a count

• Count sheets sorted by location let counters walk one route, with nothing missed and nothing counted twice.
• A difference falls on a specific location, so a recount or a trace goes straight to that spot.
• Empty and mixed locations show up at a glance.
• New staff and outside counters do not need a veteran to guide them.

An invented example

Suppose zone B has 8 racks of 4 levels with 6 positions each, 8 × 4 × 6 = 192 locations. If each location takes about 3 minutes to count and record, 192 × 3 = 576 minutes, about 9.6 hours. One person needs more than a working day, while two people sharing the work need about 4.8 hours, a little over half a day. (The times are assumed; please measure them in a trial zone.) Only with codes does such an estimate make sense, because you must know the number of locations to work out how many people and how much time are needed.

In short

Location coding is a one-off effort with lasting benefit. UzWarehouse's warehouse audit reviews goods-in and goods-out, locations, documents and access control, and gives practical recommendations. A warehouse with clear locations is counted faster and recorded more clearly.