How to Code Racking Locations|Logistix Simplified

1. Why Location Coding Matters

A clear and consistent location coding system is one of the foundations of warehouse accuracy.
Without a logical structure for naming aisles, bays, levels and positions, operators waste time searching for products,
picking errors increase, and inventory reliability drops. Many small and medium warehouses try to improve operations
by reorganizing shelves or adding more space, when in reality the biggest gains come from standardising how
locations are identified.

Warehouse managers often ask how detailed a coding system should be or which format works best for SMEs.
The truth is that a good location code does not need to be complex; it only needs to be structured, predictable,
and easy to read at high speed during daily operations.

A well-designed code reduces ambiguity, supports efficient putaway, accelerates picking, and prepares the warehouse
for future digitalisation or WMS implementation.

2. Basic Structure of a Location Code

A simple and effective location code usually follows a left-to-right logic:

Aisle – Bay – Level – Position

Example:
A03-12-02-B

A03 → aisle 03
12 → bay 12
02 → level 2
B → picking position B (optional)

This structure keeps the warehouse predictable and allows operators to instantly know which direction to move.

Another lightweight variant for SMEs is:
A-12-02

aisle A
bay 12
level 02

Shorter codes are more readable in fast-moving or low-complexity warehouses.

3. How to Design a Practical Coding Logic

3.1 Use a logical one-direction layout

Start coding locations from the main entrance or from receiving.
This makes training new staff significantly easier, because the codes follow the actual physical flow.

3.2 Keep numbers ascending along aisles

Aisle 01 → Aisle 02 → Aisle 03.
Avoid random jumps or mixed numbering.

3.3 Make levels always two-digit

Even if you only have 3 levels, use:
01 – 02 – 03
This keeps codes aligned and prevents errors during scanning or typing.

3.4 Use letters for picking faces

For example:

level 01 = picking
level 02+ = reserve
Picking positions can be labelled A, B, C for multi-slot bays.

4. Practical Example for SMEs

Here is a simple coding model used in many small warehouses:

A01-05-01 → Aisle 01, Bay 05, Level 01 (picking)
A01-05-02 → same location, reserve
B03-12-03 → Aisle B, Bay 12, Level 03

Another variant includes the zone:
Z1-A02-08-01

Z1 = fast-moving zone
A02 = aisle 2 in zone A
08 = bay 8
01 = picking level

This supports ABC zoning and replenishment logic.

5. Where Errors Usually Come From

Warehouse teams often ask why picking mistakes happen even when codes exist.
The reason is usually one of the following:

inconsistent labelling
codes not aligned with the physical direction
mixed use of letters and numbers
bays not numbered on both sides
missing “leading zeros” (1, 2, 3 instead of 01, 02, 03)

Fixing these small details increases accuracy more than rearranging the entire layout.

6. Designing the Coding for Future WMS

Even if the warehouse does not yet use a WMS, a solid coding structure prepares the ground for digitalisation.
A WMS requires:

unique location IDs
predictable logic
fixed length for codes
no duplicate or temporary locations
clear mapping between physical and logical structure

When location codes follow a consistent pattern, WMS configuration becomes fast, clean, and error-free.

Warehouse supervisors often ask how many characters a code should have.
The answer: as few as possible, but long enough to avoid duplicates. Most SMEs use 8–12 characters.

Another common question is whether locations should include the product type or category.
No — location codes must describe the place, not the product. Products move; locations must stay consistent.

7. Best Practices for Fast Implementation

keep codes short and readable
use large, high-contrast labels
label both sides of the aisle
use arrows on label plates to indicate direction (left/right)
avoid handwritten labels
use reflective materials for high levels
never reuse old codes — archiving is better than renaming

These rules save hours of training and drastically reduce mistakes.

8. See also :

Coding locations app instructions

Structure of a Racking Location Code

In our web-app and video tutorial, we use the format:

Rack – Foot – Level – Slot

Where:

Rack = the row or rack number
Foot = the vertical column or upright within the rack
Level = the shelf height (1 = bottom, increasing upward)
Slot = the horizontal position on that level

👉 Example: R02-F03-L02-S01
(Rack 2, Foot 3, Level 2, Slot 1)

This structure is intuitive for small and medium warehouses and aligns with our web application.

📌 Note: Larger warehouses or WMS systems sometimes use Zone–Aisle–Rack–Level–Slot, but the principle is similar.

Instructions :

Opening the application

The application opens directly in the browser : Chrome, Edge, Firefox .

Code for locations opens a form where you can enter:
- The rack number (1, 2 …)
- The column number of the rack (1, 2 …)
- The level number (1, 2 …)
- The number of locations in a cell (slot).
If there are picking locations in that slot, you can check the Picking Storage option and enter the number of picking locations.
Press Generate code, and the list on the right side of the screen will be populated with the locations.

Note :

the storage location code ends with a number
the picking location code ends with a letter

You don’t need to enter columns or levels in order.
The list can be exported as a csv.file using the Download CSV button .

Note :

A work session is the interval between opening and closing the browser. After closing, the data in the list is lost,
so don’t forget to export the list to .csv first.
if you have lists generated in multiple browser sessions and downloaded in .csv, you can use the web-app from
page ” Concatenate CSV files for Master Data Imports ” application to concatenate them into a single list
The exported list can then be processed in Excel or Calc from LibreOffice.

Access the application by pressing the button “Coding locations”

Coding locations

For more details watch the video :