Order Fulfillment
August 2, 2023

Warehouse storage: Bin locations and its benefits

Bin locations are an important part of modern, efficient warehouse logistics. Behind every successful business is a well-managed warehouse. This comprises attentive stock, space, and order fullfill management made possible through automation using our Shopify app EasyScan. Bin locations are a significant part of this.

It is possible that you might not have set up any yet, as a small business. But know that bin locations are useful and have many advantages for warehouse logistics. For those opening an online store, you might want to implement these measures, at early stages.

In this article we will explain what bin locations are. And we will show you the benefits of this storage system to fulfill orders.

We will show you how to maximize space, efficiency, and order processing in your business warehouse with this easy storage system.

Whatever your situation, locations for you racks, bins etc. are beneficial.

What are bin locations?

Bin locations are designated spaces where inventory items are stored. Contrary to what its name might suggest, it is not always a physical box, it can also be shelves, racks etc.

The bin location is the physical space in the storage facility where each product is stored. They are usually, one of the smallest storage units in a warehouse.

They simplify inventory management and ensure that retailers know where to keep and locate their goods. Bin locations allow you to locate a product in a warehouse and give each storage bin a unique name (address). The warehouse organization relies heavily on this.

You can use them to monitor and record an extensive amount of data. This system allows you to keep track of your stock with any number of product items no matter its size. The bin locations contribute to better the fulfillment process, improving organization storage, stock knowledge, picking pace and decrease order processing mistakes.

Also, the advantage of implementing bin locations is that they help making picking orders simpler and more productive. Follow our step by step guide to assign bin locations with EasyScan.

What type of storage methods are available?

There can be a number of different storage options accessible depending on the size on your warehouse. A typical bin location might look like a shelf, pallet, a designated space or area, or an actual bin. You can organize them in many different ways to suit your type and size of stock.

You can designate some different types of bins for different uses.

Fixed bins

They are locations that remain in the same place even if stock runs out. You can use multiple for a single product, or have multiple fixed bins with different products in them.

Random bins

These are not for any specific product. You can use random bins for temporary storage or if another location is not available, whenever you receive stock for example. You can also keep them spare in case you need to expand the number of fixed bin locations. This is ideal if your business grows and you add to your stock.

Holding bins

You can use them when you have new or unavailable stock that needs packing. You can also use them when the stock needs returning or changing before sending it to customers or suppliers.

How to organize warehouse storage systems?

1.Segment your storage unit by categories

You can divide your storage facility into distinct segments depending on its size and the amount of stock you keep.

  • Zone / Section: An area or part inside a warehouse that differs in terms of categories, storage requirements, and so on.
  • Aisle: This is the physical gap between merchandise rows.
  • Rack / Bay: This term refers to the physical structure that holds vertical inventory.
  • Level / Shelf: These are the layers of the vertical units.
  • Position: It is the specific area where each shelf or level is divided.

2.Assign locations codes

Designating storage centre locations varies depending on the facility itself, the scale and the type of item stored.

For example, a warehouse selling bathtubs is unlikely to require to identify location based on the unit/rack. A warehouse that sells small products, like electronic parts, must be well-organized to find items easily among many products.

3.Label everything correctly

Bin locations must be labeled. Typically, businesses use an alphanumeric code with different digits representing different parts of their warehouse.

For example, each warehouse floor, shelf, and bin might have a letter or number. Have a logical organization system for your bin locations and codes so employees can know exactly where items are. This is necessary for helping pickers find bins when fulfilling orders.

What are the top 5 benefits of a good bin storage system?

There are plenty of benefits to having well-organized bin locations in your storage unit. We will take you through the top 5 best benefits of this storage system. And we will give you some information on how to set-up and manage bin locations with EasyScan.

1.Know where products are

First, knowing exactly where products are is important. This is part of a wider process of inventory management that EasyScan makes extremely simple.

Barcode your stock, label its location, scan it to create inventory reports, and fulfill orders using the app. Then you can manage your different stock locations using these inventory reports. It will help you know exactly where products are in your single or multiple locations.

This organization structure, using bin locations, means you are less likely to misplace or lose stock due to human error. You will be able to track everything easily. Which means you will know what products are in stock for your customers to purchase and where they are stored.

2.Keep your warehouse organized

Second, using bin locations keeps your warehouse organized. As I’ve already mentioned, with EasyScan, you can track exactly what inventory you have in your warehouse. Combining this with the use of bin locations means you have designated spaces for everything you sell. This allows you to maximize space in your warehouse, minimize clutter and unnecessary mess at the same time.

Optimizing your storage space and your warehouse layout using bin locations is extremely important as both a small or bigger business. Maximizing space allows you to store and stock more products without needing rapidly increasing space as you grow. Remember to have spare bin locations to ensure your business can grow into your warehouse space whilst maintaining efficiency and organization.

3.Have an accurate stock

Keeping an accurate stock count is essential in order to ensure you have the necessary space for your products. Bin locations are invaluable when it comes to inventory management! They make finding things faster and help keep track of inventory.

It also helps to prevent overstocking and ensure your warehouse is always well-stocked. By using bin locations, you can easily identify which items are in short supply and need restocking.

4.Optimize warehouse space

Optimizing warehouse space is also important to maximize efficiency and productivity. A system that helps you find bin locations quickly and accurately can optimize your warehouse space.

To make the most of your space, you can also make use of warehouse optimization tools. Racking systems, automated storage and retrieval systems are very useful. Planning and optimizing your warehouse space is essential for the smooth running of your business. This will also ensure that your warehouse space is used efficiently.

5.Pick quicker with bin locations

Bin locations help warehouse employees pick products much more quickly. Employees can use the codes on bins to quickly locate products. This saves them time from having to search the warehouse for items.

This cuts down costs as it makes order picking and packing more efficient. It means you are able to fulfill orders faster. Check out our article on how to ship more parcels as a small business to further streamline this process.


It’s very plain to see how bin locations can benefit your business. They are a simple way to organize and manage stock alongside order fullfilment software apps like EasyScan.

We can improve the efficiency of order picking and distribution by implementing a straightforward system. This system assigns bin locations to stock codes and barcodes. It helps to eliminate human error and speed up processing times on your orders.

If you haven’t already got a suitable bin system for your warehouse, it is always a beneficial idea to implement one!

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