You have now decided which warehouse you want to move to. You’ve picked the right location and warehouse for your business. Now, the most important thing to do is clearly zone your warehouse for the different tasks it needs to fulfill.
In Chapter 2, we’ll explain why warehouse zoning is essential, what zones you need to designate, why you need an incoming and outgoing dock, and any special considerations you need to consider.
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Why Is It Important to Designate Warehouse Zones?
Ideally, zones should be established before you even sign your new warehouse contract. Neglecting to zone areas of your new warehouse can be a major risk (you don’t want to move into a new warehouse only to find out it doesn’t cover all your needs).
How you designate warehouse zones will directly impact your operational efficiency, and zoning should consider the processes workers need to fulfill.
Your picking method can play a significant role in your warehouse structure. For example, warehouses that utilize a LIFO (Last In, First Out) model can have a very different layout to one that uses a FIFO (First In, First Out) model because you pick order items in a different order.
It is worth noting that when you finally move to a new warehouse, you might want to keep things the same or as close to the same as possible.
You might consider this option easier because you don’t have to retrain employees; everyone knows how it works.
Perhaps you are only upgrading to a larger warehouse, for example, but everything else is the same, so there is no clear benefit to rethinking the process you had before.
If you follow the same zoning as your previous warehouse, you can get started quickly in the new location.
You can ask how the previous owners organized the warehouse. You may decide that their arrangement was most optimal.
However, it is always worth considering experimenting with different zoning ideas as you may uncover a more efficient way of working. Not experimenting with zoning ideas could be a missed opportunity.
After all, if a well-zoned warehouse improves efficiency, it can help you remain competitive. It may take time, but it could work better for your business in the long term.
What Spaces Must I Designate in My Warehouse?
Not planning warehouse sections could mean some warehouse processes get designated to awkward, impractical areas for your warehouse operations that could be too small, oddly shaped, or too far.
Quick and easy access to and through zones must be considered. You should ask yourself, ‘What layout makes most sense to your employees?’
Zoning should prevent employees from losing time traveling between tasks. Longer travel time for picking and sorting items can also increase the likelihood of accidents. Visibility should also be considered to avoid employees missing things (which can happen in cramped zones).
The limits of these zones should be clearly marked to prevent work from these tasks from spilling into other warehouse areas. Limits can also be necessary for safety reasons.
Let’s look at the key zones you want to designate in your warehouse. Remember to consider the journey between these zones, what they should be next to, and the space they need.
Shipping Area
The shipping area (also known as ‘goods dispatch’) is where orders are prepared for shipping.
Ideally, the shipping area should be positioned next to the outgoing dock so they can be loaded straight onto trucks for shipment. Orders will be grouped for shipping.
A shipping area is where you’ll find shipping stations.
Shipping Stations
Shipping stations are found in the shipping area. It is where orders are weighed and measured, and shipping labels are applied before they are handed over to couriers.
It’s a good idea to have more than one shipping station so more than one person can work on preparing orders.
Multiple shipping stations also mean tasks can be divided by priority—one person can deal with rush orders while another with non-rush orders, for example.
With an OMS (Order Management System) like Sellercloud, you can have a shipping area with multiple shipping stations and locations.
Packing Station
A packing station is where orders are checked for accuracy, packed, and labeled for shipment. Orders are assembled if they have multiple components. They may also require protective materials.
The packing station should be located next to the shipping station so that orders can easily pass from packing to shipping.
Sorting Station
Sorting stations have multiple uses. They can be where received inventory is sorted, orders are compiled, or returns are processed.
Businesses can use Skublox’s put-to-light and pick-to-light technology to minimize order errors and increase sorting accuracy.
Find out more about Skublox.
Non-permanent Storage
You may know this space by many different names, and it is used for many purposes. Essentially, it is a temporary place to put things while working.
This can include garbage, empty boxes, and items and deliveries to be sorted. By placing them out of the way, you can get to more urgent tasks and return later to deal with what’s occupying the space.
Admin Zone/Office Space
Where management is based, this warehouse zone is where you deal with documentation and bureaucratic stuff related to running the warehouse.
This zone may also be where the company server is stored and may be used by customer services and those who work on product listings.
If you utilize a WMS (Warehouse Management System) like Skustack, you can monitor how your warehouse is being used from this space in real time.
Technical Zone for Managing Equipment
Don’t forget to consider where your warehouse equipment should be located! Equipment shouldn’t get in the way of work activities; it should have a clearly defined area where it should be kept.
This zone needs to be big enough for a forklift. If your warehouse uses electric forklifts, it should include a charging station.
Optional: Grading Area
A grading area is vital for companies that sell refurbished and secondhand products. Products will arrive at your warehouse in all conditions, so a designated space is needed to classify them.
If you only sell brand-new products, you don’t necessarily need to consider a grading area, though it can be helpful when dealing with returns to determine if the item can be resold.
Why Are Warehouse Docks Important?
Warehouse docks make moving goods to and from the warehouse and trucks significantly easier.
You should have at least two docks, one for receiving and another for shipping; this way, supplier orders can arrive and customer orders can leave at the same time.
A large business can benefit from several docks to send and receive multiple shipments simultaneously.
Incoming Dock
It’s always a good practice to have a dedicated dock for receiving inventory from suppliers to prevent any mix-ups with inventory coming in and out of the warehouse and the inventory already stored in your warehouse. This is especially important when you have large orders to process.
The incoming dock should open directly to the sorting station, where it can be checked for quality, processed, and sorted straight onto the shelves.
When the shipment is completed, the next truck can dock, and it will not affect the rest of the warehouse.
As mentioned above, you may have multiple docks dedicated to incoming inventory. Suppliers may send multiple trucks to your warehouse, or you could receive them from more than one supplier simultaneously.
Outgoing Dock
The opposite of an incoming dock, an outgoing dock is for already packaged products that are to be shipped to customers, fulfillment centers, other warehouses, wholesalers, etc.
If you only have one dock you use for both incoming and outgoing inventory, you can’t receive and ship at the same time, preventing your business from growing.
Again, you may have multiple outgoing docks. It is practical for your outgoing dock to be close to your packing and shipping stations.
Special Considerations
Last but not least, depending on your industry, you may need tightly controlled zones for specific products in your inventory.
An easy example is if you sell products that need to be thermally regulated, like ice cream or medical items like vaccines (usually kept at around 38°F) to prevent spoilage. Similarly, dry zones prevent moisture from spoiling products (usually kept at 50°F to 70°F).
Companies that sell chemicals, pharmaceuticals, and construction materials may have zones for different hazardous materials.
Each type of hazard should have its own zone and have safety parameters to prevent accidents. These can include zones for products that are:
- Dangerous chemicals
- Corrosive.
- Flammable.
- Explosive.
You may also have a dedicated zone for high-value items to keep them secure (you may even use a security cage). If you sell products far larger than anything else in your inventory, you may want to dedicate a zone for oversized storage.
Key Points
You are now well prepared to zone your new warehouse. Remember these key points.
- Zoning a warehouse is crucial because it impacts your workflow. If you don’t zone areas effectively, some may be poorly shaped, too small, or too far away from related areas.
- Some of the most important spaces to designate in your warehouse are the shipping area, shipping, packing, and sorting stations, as well as an area for non-permanent storage.
- Ideally, you should have dedicated docks for incoming and outgoing shipments so you can ship and receive simultaneously.
- Your warehouse may need special zones depending on the types of products you sell. Some items may be temperature-sensitive, high-value, or hazardous and should be stored separately.
In the next chapter, we will explain all there is to know about warehouse layout.