Maximizing Space Utilization: Tips and Tricks for Warehouse Layout Optimization with a WMS

Planning is crucial if you want your warehouse to succeed. With the right strategies, you can ensure that goods are received, scanned and stored efficiently. With all these things in place, you can guarantee speed and accuracy and give customers a great experience.

But it’s easier said than done. Since warehouses are such dynamic spaces, you need one tool to manage all functions. A warehouse management system (WMS) maximizes warehouse space and optimizes inventory storage.

Read on to learn more about how a WMS will help you create effective warehouse layout strategies.

Why Do You Need An Optimized Layout?

When discussing warehouse layout, you must pay close attention to how the space is arranged. Consider how the layout affects the inventory, the equipment, and your workers as they carry out their tasks in the warehouse.


In warehouse layout optimization, your goal should be to improve production flow. All stations, such as picking, packing, and shipping, should be organized to improve productivity while reducing errors.

The best way to start is by using warehouse space utilization tactics. Here, you must create a smart layout that allows goods to move practically while maintaining workers’ safety.

Simply put, maximizing warehouse space lets you cut costs, increase productivity, improve customer satisfaction and maintain a smoother supply chain.

3 Reasons to Consider Warehouse Space Management

Warehouses are large, dynamic spaces, and complete organization can be time-consuming. However, the benefits of warehouse space optimization are tenfold.

With the right strategies, you can create an optimized space that takes business to the next level. Here are some reasons why you should consider warehouse space management.

space management

1. Reduce Lead Times

One easy way to guarantee customer satisfaction is by shipping products faster. But speed shouldn’t compromise accuracy. With warehouse layout optimisation, you can make the space more accessible to navigate for workers, reducing mispicks and improving productivity.

2. Improve Worker Safety

Hard-to-reach areas, insufficient equipment space, and unorganized storage can all impact a worker’s safety. Carefully designed warehouses often use ergonomic principles to create a safer work environment and reduce bodily injuries for team members.

3. Protect Inventory and Other Goods

A great way to improve customer experience is by ensuring products arrive in excellent condition. With a suitable layout, your products will remain damage-free as they move through the warehouse.

How Can a Warehouse Management System Help With Layout Optimisation?

If there’s one tool that can help you master warehouse space optimization, it’s a WMS. A warehouse management system (WMS) system is designed to manage all major functions in a warehouse.


You can add all your stored inventory here, assign categories, track its movement, and ensure it is shipped on time. With better control over your warehouse, you can use space optimisation techniques to create free-flowing movement.

Some WMS also provide warehouse space strategies that are catered to your business. Ultimately, your WMS should centralize all functions in the warehouse. Once you use this software, you’ll have a future-proof solution to increase your warehouse’s longevity.

Areas that Need Warehouse Space Optimisation

A well-run warehouse has multiple stations carrying out unique tasks. For an effective layout optimisation strategy, you need to pay special attention to these areas.

Here are some common warehouse areas to focus on and how they can optimize your daily operations.

  • Receiving Station: Often, this is the starting point for all functions in a warehouse. Here, goods are unloaded, recorded, and stored for future picking/packing. To optimize this process, ensure the receiving station is close to the storage section for easier and quicker movement. A WMS is a great help because it accurately records all inventory. With this information, you can maintain optimal inventory levels.
  • Storage Section: Since inventory is kept here, keeping the area well-organized is essential. Better accessibility will allow workers to easily reach items when they are ready for order fulfilment. Additionally, ensure the storage area is directly connected to receiving and packing stations. This layout will allow items to move fluidly in the warehouse. With WMS, you can learn more storage strategies to reduce travel times and improve order fulfilment accuracy.
  • Packing Station: A crucial area where parcels are packaged for shipment. You should create a packing station between the storage and shipping stations. This placement will create a seamless flow between the different stages of order fulfilment.
  • Shipping Bay: An optimized warehouse layout should leave ample space for machinery and other equipment. It should also provide clear access to transport vehicles and maintain the items’ safety.
  • Miscellaneous Areas: In addition to workstations, your warehouse layout should consider the best location for management offices, restrooms, and employee break rooms. Place offices near the receiving and shipping stations, as warehouse managers must process invoices and handle logistics. Additionally, restrooms should be made easily accessible to workers wherever possible.

4 Effective Warehouse Layout Strategies with a WMS

If you’re looking for a warehouse efficiency solution, consider a warehouse management system (WMS).

WMS is an excellent solution for your warehouse layout optimization worries. With this software, you can implement effective strategies to increase productivity and improve customer experience.

Here are 4 effective warehouse strategies you can practice with a WMS.

1. Accurate Inventory Storage

Knowing how much inventory you’ll store is crucial to planning your warehouse. A WMS is excellent here because it can forecast this information so you can plan accordingly.


When you analyze data on stock levels, you can identify what products are in high demand and which are moving slowly. This will allow you to make adjustments without upsetting the flow of your supply chain.

With these tools, you can reduce waste and improve the overall accuracy of your supply chain.

2. Easy Flowing Supply Chain

Sometimes, in manual tracking, miscommunication and human errors can create bottlenecks in the supply chain.

Even if you create an optimized layout, lack of visibility in the supply chain will slow down workers, leading to longer shipping times. Fortunately, a warehouse management system is excellent at tracking product movement.

With this feature, you’ll know exactly where items are and where they’re going in the warehouse. All team members can access this information so everyone in the warehouse is on the same page.

3. Faster Shipping and Receiving

Receiving and shipping are two key areas in a warehouse that ensure a smooth workflow. In a smart warehouse, the incoming and outgoing stations must maintain fluidity. One slight hiccup here can be disastrous for the entire supply chain.


With analytics and data, warehouse managers can pinpoint inefficiencies and identify bottlenecks for improvement. You can use this data to create an optimized space that allows easy movement throughout the warehouse.

4. Increase Productivity

One easy way to measure whether your layout optimization is working is by checking productivity levels. After all, the main goal for warehouse layout optimization is to increase work efficiency, so it’s crucial that your plan takes this into account.

An organized warehouse makes the space more manageable for workers, allowing them to find items faster and without errors. Additionally, workers will have enough space to move around safely and reduce the risk of workplace injuries.

With an optimized layout, you’ll increase productivity and boost morale amongst your team members.

6 Tips for Warehouse Layout Optimisation

Organizing your warehouse can seem daunting. With so many things to consider, you might need help figuring out where to begin. Don’t worry; we’ll break down 6 steps to help you create the perfect warehouse optimisation plan.

1. Define The Overall Goal

Before you start creating a plan, identify your goals. What is your business model, and what is the warehouse used for? Consider the goods you store and the amount you’ll need for the future.

How will stock go in and out of the warehouse? All these questions and considerations will help you build a solid strategy for space optimization.

2. Check Storage Requirements

Map out your warehouse using visual aids to get a better idea of its layout. With a model or diagram, you can plot precisely where to place each station and create optimized pathways for quick movement.

Check your warehouse’s dimensions to understand how much space you’ll use. With these details, you can avoid running out of space or have ample room for future scaling up.

3. Choose The Right Storage System

The next thing you need to consider is the type of storage system. Will you use a shelving unit, pallet racks or a combination of these two? Whichever storage system you use, there are 3 things to keep in mind:

  • It should maximize productivity
  • Allow workers to reach items easily
  • Provides safe storage so items don’t sustain damages

Once you consider these factors, you can find the right storage system to maximize the use of your warehouse.

4. Assess The Space

Earlier, we mentioned common stations in a warehouse. Now is the time to assess where to place these stations to maximize efficiency. You should provide ample space in these areas to avoid bottlenecks and congestion.

Additionally, consider the foot traffic in your warehouse and how it will affect these spaces. Are the pathways clear? Do they allow easy movement without safety concerns? Use visual aids to understand better how your proposed layout will work.

5. Install A Warehouse Management System

Warehouse space utilization has several moving parts that can be hard to manage. Fortunately, a warehouse management system is well-prepared to handle all these tasks.


Once you have a basic idea of your new warehouse layout, use a warehouse management system to digitize your facility. With WMS’ automated tools, you’ll have a better handle on your warehouse’s operation.

6. Conduct A Test

You spent hours creating the perfect warehouse optimization plan. That’s great! Now it’s time to test it.

Create mockups of various stations in the warehouse and use tape to build pathways around the space. Conduct thorough testing to determine your strengths and weaknesses. This will help you know exactly what works and what to fix.

With these tips, you can create an optimized layout that boosts productivity without sacrificing efficiency. Remember to review your space regularly to make sure everything is running smoothly.

How Does Canary7 Help With Warehouse Layout Optimisation?

Canary7’s WMS is an excellent option for businesses looking to create a smart warehouse. Our WMS is designed with innovative tools to handle daily tasks and more complex problems.

layout optimization

You will also have access to quality data insights crucial for decision-making. But that’s not all – here are some more great features of Canary7’s WMS:

  • 360° Operation View: Visibility is crucial for warehouse layout optimisation. Canary7’s WMS takes a bird’s eye approach to your daily operation so you can map out everything in your warehouse.
  • Responsive Design: Data and analytics are only helpful if they’re easy to access, and we at Canary7 understand that. Our responsive design lets you quickly peruse all data to make the best decisions for your business.
  • Improved Productivity and Efficiency: Canary7’s WMS simplifies warehouse tasks and provides tools to create a smooth workflow.
  • Real-time Reporting and Visibility: Our WMS provides access to real-time reporting with accurate details and measurable KPIs. With this level of visibility, you can make informed decisions and optimize your inventory.
  • Scalability: As your business grows, Canary7’s WMS will scale up with you. Our scalable WMS will be a future-proof solution for your warehousing needs.

Maximize Warehouse Space Utilisation with Canary7 WMS

Warehouse layout optimization is crucial to improving efficiency and driving business growth. This is why you need the best of the best regarding warehouse management.

Canary7’s innovative WMS is the perfect tool for any warehouse looking to optimize its space and boost productivity. Our user-friendly WMS software is designed to improve organization and visibility while providing you with data that will measure these improvements.

Our software is designed to give you a 360-degree view of your inventory with accurate insights to make informed decisions. With all these tools, you can improve efficiency while cultivating your brand.

So don’t wait; get started with Canary7 today!



Colleen Ballantine

Colleen Ballantine


UPDATED ON: 22nd May 2024

Colleen is a marketing specialist at Canary7, writing in-depth blog content on warehouse management, inventory control, and logistics. With extensive industry experience, Colleen focuses on delivering informative and insightful posts

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