In the fast-moving world of retail and e-commerce, the warehouse is no longer just a storage space—it’s a performance engine. Efficiency within warehouse operations directly influences customer satisfaction, operational costs, and overall business agility. At the core of this engine lies a well-thought-out warehouse layout and precise measurement of picking and packing speeds.
Whether you’re managing a distribution hub, a dark store, or a fulfilment centre, understanding warehouse layout metrics is essential for driving productivity and maximising space utility. Let’s delve into how to design smarter, move faster, and achieve more with modern Warehouse Management Systems (WMS), including NetSuite WMS and other cutting-edge tools.
Understanding the Value of Strategic Warehouse Design
Warehouse design is more than just deciding where racks and bins go. It's a strategic function that affects every corner of logistics—from how fast a picker retrieves an item to how efficiently stock moves in and out of the facility.
In the MENA region, where businesses often scale rapidly and must accommodate local fulfilment and cross-border shipping, space utilisation and picking efficiency are crucial KPIs. A well-planned warehouse layout ensures that:
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Storage areas are optimised for maximum capacity.
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Picking zones are easily accessible and logically structured.
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Pathways and workflows reduce unnecessary travel and movement.
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Operational costs decrease due to less handling and quicker turnaround.
Key Metrics in Warehouse Layout Performance
To truly optimise your warehouse layout, you need to track metrics that give visibility into both static design and dynamic performance.
Space Utilisation Rate
This metric shows how efficiently you are using available storage space. It compares the amount of space actually used for storing inventory against the total usable space. High space utilisation rates mean your layout and racking strategy are effective.
Formula: Space Utilisation (%) = (Used Storage Space / Total Storage Space) × 100
Inventory Cube Per Order
This indicates how much space each order consumes, which helps optimise slotting and packing zones. Lower values reflect better use of space and streamlined operations.
Dock-to-Stock Time
The quicker items are stored after receiving, the better. Long dock-to-stock times can bottleneck inventory flow, indicating layout issues or poor putaway processes.
Picking Accuracy
Accuracy is non-negotiable in modern fulfilment. A poor layout leads to mispicks, especially if items are stored haphazardly or similar SKUs are too close together.
Travel Time for Picking
Reducing the distance workers travel to pick items is a central goal of warehouse layout design. This metric shows how effectively your layout supports rapid picking.
Pick/Pack Speed
The ultimate metric for throughput, pick/pack speed is tracked in units per hour or orders per picker per shift. Smart routing and efficient layout have a massive impact here.
Using Zone-Based and Cluster-Based Picking Strategies
In high-volume fulfilment hubs, zone-based and cluster-based picking models are key to achieving faster throughput. These models benefit from layout strategies that reduce overlaps and prevent picker congestion.
Solutions like Omniful’s WMS and NetSuite WMS allow warehouse managers to create logical picking zones and automate route optimisation based on order volume and product velocity. Using handheld apps and real-time dashboards, businesses can track picker performance, scan locations, and dynamically reassign zones to balance workloads.
Leveraging NetSuite WMS and Smart Technology for Layout Optimisation
Warehouse operations in the GCC are rapidly adopting NetSuite WMS, thanks to its ability to integrate seamlessly with ERP systems, automate workflows, and provide visibility across multi-hub operations.
Benefits of NetSuite WMS for Layout Metrics:
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Dynamic Putaway and Slotting: Based on SKU velocity, dimensions, and expiry dates.
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Real-Time Inventory Tracking: Accurate data enables informed space planning.
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Picker Performance Analytics: Dashboards reveal bottlenecks and inefficiencies.
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Integration with IoT and Barcode Scanners: Ensures fast and accurate location scans.
Systems like Omniful’s WMS further enhance performance by supporting advanced zone-picking, cluster-picking, and AI-driven picking route optimisation, especially tailored for the MENA market.
Best Practices for Optimising Warehouse Layout
Improving warehouse layout is an iterative process. Here are practical steps that drive results:
Analyse Historical Order Data
Study product movement patterns to identify high-demand SKUs and place them closer to packing stations. This approach, often called the "golden zone", reduces picking time dramatically.
Implement ABC Analysis
Group products into categories:
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A items: Fast-moving, placed near dispatch.
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B items: Moderate velocity, medium distance.
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C items: Slow movers, stored further away.
This technique allows efficient space planning and reduced picker travel.
Design for One-Way Flow
Minimise backtracking and congestion by designing a layout that supports a one-way flow from receiving to storage to picking to dispatch.
Allocate Space Based on SKU Dimensions
As offered by Omniful’s system, assigning bin spaces based on SKU dimensions helps avoid underutilised vertical or horizontal space, which is often overlooked.
Use Vertical Space Wisely
Use stackable shelving and high-bay racking systems to take advantage of the warehouse's cubic volume—not just the floor area.
Measuring and Improving Pick/Pack Performance
Speed in picking and packing doesn’t just rely on worker productivity—it reflects your system and layout's intelligence.
Metrics to Monitor:
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Pick Rate per Hour: Items picked per hour per picker.
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Pack Rate per Hour: Orders packed per hour.
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Order Cycle Time: Time taken from order placement to shipment.
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Error Rate: Returns or complaints due to incorrect picking/packing.
How to Improve:
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Optimise Workflows: Use systems like Omniful or NetSuite WMS to route tasks based on order type (B2C, B2B, express, etc.).
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Deploy Picking Carts or Robots: Reduces fatigue and enhances speed.
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Use Scanning Technology: Enforce mandatory location scans to ensure accuracy.
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Train and Cross-Train Teams: Flexibility in task assignment improves adaptability in peak seasons.
Technology That Powers Smart Layouts
Modern WMS platforms are no longer just databases—they are performance optimisation engines.
Omniful WMS Highlights for Layout and Speed:
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Picker Route Optimisation: Reduces distance covered during picking.
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Real-Time Inventory Sync: Reduces mispicks and improves layout visibility.
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Manual and Barcode Entry Flexibility: Speeds up operations without compromising accuracy.
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Performance Tracking: Monitor each picker’s throughput and scan compliance.
Omniful also supports integration with handheld devices like Zebra, Honeywell, and Sunmi—empowering staff with tools to pick and pack with precision, even during peak load.
The ROI of Warehouse Optimisation
A poorly designed warehouse bleeds money—through excess labour, slower fulfilment, and lost sales due to stockouts or delayed deliveries.
When warehouse layout is optimised, businesses benefit from:
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Faster order fulfilment (critical in Q-commerce and grocery).
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Reduced returns due to higher accuracy.
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Lower labour costs through efficient workflows.
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Better space utilisation, delaying the need for warehouse expansion.
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Happier customers, which means repeat business.
In case studies from the GCC, such as Laverne in KSA, implementing Omniful’s WMS helped reduce delivery times from 4–6 days to just 2–3 hours in Riyadh through smarter layout and dark store fulfilment models.
Final Thoughts
A warehouse’s physical design and digital intelligence go hand-in-hand. By tracking key metrics like space utilisation, pick speed, and packing efficiency, you gain the insights needed to transform operations from chaotic to streamlined.
The right warehouse layout—supported by tools like NetSuite WMS and Omniful’s WMS—empowers your team, improves performance, and sets the stage for scalable growth across the MENA region.
If you're serious about elevating fulfilment in your supply chain, start with your layout—and measure everything.