Efficient warehouse management starts with an organized layout and a logical labeling system. By defining specific areas and racking systems, you ensure that your team can navigate the facility quickly and accurately.
Once your naming scheme is established, you can begin Creating and Managing Locations within the ShipHero platform.
Table of Contents
Developing a Naming Scheme for Your Warehouse Locations
The most critical aspect of location setup is a consistent naming scheme. This optimizes the picking path, allowing the system to calculate the most efficient route for order fulfillment. A standard naming scheme follows this pattern: Zone-Aisle-Rack-Shelf-Bin.
| Location Component | Definition and Use Case |
| Zone | A large warehouse section categorized by item size, velocity, or equipment needs (e.g., a Forklift Zone vs. a Manual Pick Zone). |
| Aisle | Parallel rows within the zone. Aisle width depends on product dimensions and equipment clearance. |
| Rack | Also known as bays; these are the individual shelving units located within an aisle. |
| Shelf | The horizontal level within a specific rack. |
| Bin | The final specific storage position for products on a shelf. |
Important Notes:
- Leading Zeros: Always use a zero for numbers less than ten (e.g., 01, 02). This ensures the software sorts the locations correctly in alphanumeric order.
- Consistency: Maintain a uniform length and format for all locations. Do not mix formats like A-1-1 and A-01-01 in the same warehouse.
Example:
For example, an item at Location 1-A-03-B-03 is located in Zone 1, Aisle A, Rack 03, Shelf B, and Bin 03.

Labeling Locations on Racks and Shelving
Warehouse experts generally recommend a serpentine labeling system. This allows pickers to weave through aisles in a continuous flow, reducing walking time and increasing picking rates.
Your aisle configuration determines your labeling strategy:
- Two-Lane Aisles (Blue Path): If space allows for two-lane traffic, the aisle name is determined by the racking units themselves.
- One-Way Paths (Red Path): If the path is narrow, the walking path itself serves as the aisle indicator. In this configuration, use odd numbers for one side of the aisle and even numbers for the other to create a "zig-zag" pick path.
Pro-Tip: Bottom-Up lableing: Number shelves starting from the floor. This allows you to add or adjust higher shelves without needing to re-label existing inventory.
