How to Scale: How to Optimize Warehouse Layout for Mixed Product Sizes in Growing Warehouses
As building material distributors expand, warehouse space becomes a precious resource. But unlike retail or packaged goods, the construction supply industry deals with extreme product diversity—from pallets of bricks to loose fasteners, steel beams to buckets of paint. Scaling warehouse operations means learning how to store everything from tiny SKUs to massive inventory without slowing down your team or increasing handling errors.
This guide will walk you through how to optimize your warehouse layout for mixed product sizes as your operations grow.
Step 1: Segment Products by Size, Weight, and Handling Needs
You can’t apply a one-size-fits-all storage strategy. Divide your inventory into clear categories based on physical traits:
Small, boxed SKUs: nails, screws, fittings, fasteners
Medium palletized SKUs: tile, bagged cement, drywall sheets
Oversized or long items: lumber, rebar, steel pipes
Liquid or hazardous materials: adhesives, paints, sealants
Each category should have its own dedicated zone, tailored to how the material is stored, picked, and transported.
Tip: Use color-coded zones and signage so staff can easily navigate to each type of storage area.
Step 2: Use the Right Mix of Racking Systems
A growing warehouse needs flexibility. Incorporate a blend of racking types to accommodate your product mix:
Pallet racking: Great for palletized items or uniform SKUs
Cantilever racking: Ideal for long materials like piping or lumber
Bulk floor storage: For oversized inventory like stone, roofing, or rebar bundles
Shelving bins: For smaller, high-turnover items that are picked by hand
Investing in modular racking systems allows you to expand or reconfigure zones as your SKU count grows.
Step 3: Design for Movement Efficiency
The layout must support safe, efficient movement of both people and equipment:
Wide aisles for forklifts and side loaders in lumber/piping areas
Narrow aisle shelving for smaller SKU pick zones
Clear staging areas near loading docks for mixed orders
Flow-through design where receiving and shipping zones don’t overlap
Every step your staff takes is labor cost. Lay out your space to minimize unnecessary movement.
Step 4: Prioritize High-Turnover Zones
Group your most frequently picked SKUs near shipping docks and main aisles. This reduces travel time and avoids congestion during busy hours.
Store high-demand fasteners and fittings closest to pickers
Place special-order or seasonal items in remote locations
Re-slot every quarter based on movement data from your ERP
Use ABC analysis to identify A-tier (fastest moving) inventory and update storage accordingly.
Step 5: Integrate Layout with ERP and WMS Systems
Your warehouse layout should be reflected in your ERP/WMS system. This means:
Digital bin locations mapped by zone
Mobile picking devices guiding staff to optimal routes
Alerts for inefficient slotting or storage congestion
A growing warehouse needs real-time system visibility—not just physical organization.
Step 6: Plan Vertical, Not Just Horizontal, Growth
As square footage maxes out, go up. Use:
Tall racking with forklift access
Vertical lift modules for small items
Hanging racks or overhead storage for piping and conduit
Make sure load limits and safety requirements are clearly labeled and staff are trained in safe vertical access procedures.
Step 7: Review and Reoptimize as You Scale
As your warehouse scales, your product mix and flow patterns will evolve. Schedule quarterly reviews to:
Analyze picking and storage KPIs
Identify bottlenecks in movement
Reslot SKUs based on changes in turnover or seasonality
Continuous optimization is key to keeping costs down and service levels high in a growing environment.
Final Thoughts
Optimizing layout for mixed product sizes isn’t just a one-time project—it’s an ongoing process of adjusting space, tools, and technology to match your business needs. With the right zoning, racking, and ERP integration, you can build a warehouse that scales as smoothly as your operations do.
