In modern logistics, speed and efficiency are everything. Whether fulfilling e-commerce orders or supplying retail outlets, a well-designed warehouse layout can make the difference between meeting customer expectations and falling behind competitors.
But optimising warehouse layout isn’t just about squeezing in more racking or shortening travel distances. It’s about designing an environment where people, processes, and technology work together seamlessly.
Here’s how to approach warehouse layout design strategically to improve throughput, reduce costs, and enhance operational control.
1. Start with Data, Not Guesswork
Before changing a single aisle, collect and analyse the data that shows how your warehouse really operates. This includes:
- Order profiles – What are your typical order sizes, line counts, and pick frequencies?
- SKU velocity – Which items move fastest and which are slow movers?
- Storage requirements – How much space does each SKU type require, including seasonal variations?
- Material flow – How do goods move from receiving to dispatch, and where do bottlenecks form?
Using these insights allows you to design a layout around actual movement and demand patterns rather than assumptions.
A data-driven layout reduces wasted motion, minimises congestion, and aligns space with value-generating activity.
You can read more about the importance of data in warehousing in our blog post ‘The Future of warehouse design’.
2. Apply the Golden Principles of Flow
Every efficient warehouse follows three universal flow principles:
- Minimise travel – The fewer metres a product or picker travels, the faster the process.
- Avoid cross-traffic – Keep inbound, outbound, and internal movements separate wherever possible.
- Follow a logical sequence – Arrange operations so goods move in one direction from receipt to storage to pick to dispatch with minimal backtracking.
Think of your warehouse as a continuous production line where each zone should naturally feed the next.
We further explore the themes of warehouse flow in our blog posts, ‘Warehouse Design – 5 Tips for Success‘ and ‘5 Steps to Effective Warehouse Design’
3. Slotting - Put the Right Items in the Right Place
A well-planned slotting strategy that puts the right items in the right place can transform efficiency:
- Start by placing fast movers near dispatch by putting your highest-velocity SKUs closest to the packing and shipping areas.
- Put heavy or bulky items low and near aisles to reduce lifting risk and picking time.
- Slow movers should be higher up or further away to maximise prime picking real estate for the products that matter most.
- Finally, group items by affinity and store items commonly ordered together nearby to speed up multi-line picks.
- Slotting should never be static. Seasonal trends, promotions, and changing product lines mean you should review slotting data regularly and re-optimise when necessary.
4. Design for People and Technology
The best warehouses are designed for collaboration between human operators and technology and have the following features:
Ergonomic design
Ensure pick heights, workstation setups, and travel distances are optimised to reduce fatigue and risk of injury.
Automation zones
If you use conveyors, AMRs, or pick-to-light systems, integrate them into the layout early as retrofitting them later often causes inefficiencies.
Clear visibility
Maintain open sightlines for supervisors and ensure logical labelling, signage, and lighting support fast navigation and safety.
Charging and maintenance stations
For electric trucks, robots, or handheld scanners, position charging points in low-traffic areas to avoid disruption.
We, again, further explore about how you can design your warehouse for the everdeveloping technology in our blog post about The Future of Warehousing
5. Use ABC Analysis to Prioritise Space
A classic but still powerful approach is to classify your SKUs based on their contribution to overall order volume or value.
- A-items – Top 20% of SKUs that account for 80% of movements should be placed closest to picking and dispatch.
- B-items – Medium-velocity SKUs are located slightly further out.
- C-items – Slow movers should be stored higher up or in less accessible zones.
This ‘Pareto logic’ ensures you focus space and labour where it counts most.
6. Build Flexibility into Your Layout
Modern supply chains demand agility. Your layout must adapt to changing product ranges, order profiles, and fulfilment models. We would suggest the following:
- Use modular racking and adjustable shelving to handle changing SKU dimensions.
- Design multi-purpose zones that can switch between overflow storage, value-add services, or seasonal returns.
- Create temporary pick faces for peak periods using mobile racking or floor storage.
- If you deploy automation, prioritise scalable systems like AMRs or shuttle systems that can expand as volumes grow.
We further explore the theme of flexibility in warehousing in our article ‘How to Improve Warehouse Storage’
7. Don’t Neglect the ‘Invisible’ Factors
A warehouse layout is more than just walls and racks. Operational performance depends on softer factors too;
- Signage and visual management such as clear directions and visual cues help staff navigate and avoid errors.
- Lighting and environment including bright, evenly distributed light improves accuracy and morale.
- Ensure safety first with wide aisles, marked pedestrian zones, and safe crossings between forklift routes to protect both people and productivity.
- Allow maintenance access and sufficient room for service equipment without halting operations.
8. Simulate Before You Build
Before committing to physical changes, use digital modelling or simulation software to test scenarios.
You can model travel paths, bottlenecks, and throughput to see how layout adjustments affect performance under different demand conditions.
Digital twins of warehouse layouts can reveal hidden inefficiencies long before a single pallet is moved.
9. Review and Iterate
Warehouse layout optimisation isn’t a one-off project; it’s an ongoing process. Continuous improvement ensures your warehouse layout evolves with your business. We would suggest that you do the following regularly:
- Conduct regular audits to measure travel time, pick rates, and utilisation.
- Gather feedback from warehouse staff as they often spot inefficiencies before the data does.
- Continually update your slotting and flow models based on new product lines and customer behaviour.
How to Optimise your Warehouse Layout - Speed and Efficiency Come from Smart Design
An optimised warehouse layout is the foundation of operational excellence. It reduces travel, improves accuracy, and enhances throughput without necessarily requiring heavy automation investment.
The goal is simple – design a space that moves as fast as your customers expect, powered by intelligent data, efficient flow, and a team set up to succeed.
If you need expert support in optimising your warehouse design and layout, Paul Trudgian provides independent, data-driven consultancy to help you deliver measurable efficiency gains. Get in touch today