Bin Location Best Practices and Common Mistakes

Bin locations are powerful, but when poorly implemented they can create more work than they solve. This friendly guide highlights the most common pitfalls beginners face and offers practical best practices to keep your bin location system accurate and valuable over time.

Common mistake #1: Overly complex codes.

Some teams try to encode too much information into a bin code (material type, weight class, owner, etc.). While descriptive codes can be useful, complexity increases training time and human error.

Best practice: keep codes predictable and short. Use the WMS to store additional attributes rather than packing them into the location code itself.

Common mistake #2: Inconsistent labeling and signage.

If a label fades or a barcode is missing, staff may guess the location, leading to errors.

Best practice: use durable, standardized labels with both human-readable text and a barcode. Inspect labels regularly and replace damaged ones promptly.

Common mistake #3: Not matching software to reality.

When updates are made on paper or only in people’s heads, the WMS becomes unreliable.

Best practice: require scanning for all put-away, transfers, and picking moves. Enforce a policy that physical moves must be recorded in the system immediately.

Common mistake #4: Ignoring ergonomics and safety.

Assigning heavy items to top shelves or narrow aisles can slow picking and create hazards.

Best practice: consider weight, size, and handling equipment when assigning bins. Place heavy or frequently-accessed items within comfortable reach and ensure aisles and bin spaces meet safety clearances.

Common mistake #5: Poor slotting strategy.

Storing fast-moving and slow-moving items together or placing frequently picked SKUs far from packing slows operations.

Best practice: perform an ABC analysis (A = fastest movers, C = slowest) and slot A items near picking and packing areas. Re-slot seasonally or when demand patterns shift.

Common mistake #6: no plan for growth.

A bin location system that works for 1,000 SKUs may break as you expand.

Best practice: design naming and labeling systems with extra capacity. Reserve ranges of codes for future aisles or new rack heights so you can scale without renaming everything.

Best practices summary

• Keep naming simple and consistent — use a clear pattern and avoid unnecessary complexity.
• Label clearly and durably — include barcodes and readable text, and protect labels from wear.
• Use technology for accuracy — barcode or RFID scanning minimizes manual entry errors.
• Implement slotting — place fast movers for efficient picking, group related SKUs together, and respect size/weight constraints.
• Enforce update discipline — require transactions to be recorded at the time of physical movement.
• Train and coach staff — make sure everyone understands location codes and scanning procedures.
• Audit regularly — run cycle counts by zone and track inventory accuracy over time.

How to recover when things go wrong

If you find many discrepancies, start with a physical audit of one problem zone and compare the WMS to reality. Stop new movements into that zone until discrepancies are resolved. Use root-cause analysis: was it mislabeling, poor receiving, or incorrect put-away? Fix the process (for example, enforce scanning at put-away) and conduct a targeted retraining session.

Metrics to monitor the health of your bin location system

• Inventory accuracy — percentage of counts that match WMS quantities.
• Pick accuracy — errors per thousand picks.
• Time per pick — minutes or seconds taken from list to packed order.
• Space utilization — percentage of bin capacity used effectively.

Small, consistent improvements make a big difference. For example, adding barcode labels and enforcing put-away scanning often cuts pick errors by half within weeks. Re-slotting a small number of top A SKUs closer to the packing area can raise picks-per-hour noticeably with minimal cost.

Finally, remember that bin locations are a living system. Product mixes change, volumes shift seasonally, and warehouse layouts evolve. Schedule regular reviews (quarterly or after major product changes), keep training fresh, and make the system easy to use — that’s the best way to ensure your bin locations continue to deliver benefits over the long term.