How Do You Categorize Goods In A Logistics Warehouse?

For the proper functioning, but especially to facilitate the traceability of your goods in your storage warehouse, you must adopt a particular management and organization technique. To do this, you must know and master everything there is to know about the basics of storage in a logistics warehouse. To help you, follow our complete guide below

The basic rules for the optimal design of a logistics warehouse


In the professional world, products are categorized according to their type and sales dynamics.

1. Mastering the ABC storage method

The ABC method works by categorizing goods in order of importance. In order to facilitate this categorization, rely on the turnover rates that you must carry out with each type of merchandise by making a ratio between the outputs and the stock:

    • A-goods are the goods that undergo 80% of turnovers, compared to 20% of SKUs. They are the most valuable and are placed in the middle of your shelving spaces, near your entry and exit points.
    • B-goods correspond to 30% of the references and have an average of 15% of rotations. These products are of average value and do not come out of stock often. They can be found at the bottom of the shelves.
    • The C goods make only 5% of rotations, against 50% of references. They are of very low value and are located high up on the shelves that are less easily accessible.

2. Optimization of storage space

To facilitate your logistic flows, it is essential to optimize your storage spaces while trying to keep a handling game for your teams:

    • For the management of your archives: the clearance must be almost zero to optimize your logistics storage
    • For manual handling: a few centimetres are enough for a lateral clearance (L) and a high clearance (H) for the seizure of the goods
    • For handling with machines: give preference to a lateral clearance of 75 mm and a high clearance of 100 mm.

Logistics flow management with FIFO and LIFO systems

1. The principle of the FIFO system (First in- First out)


The FIFO principle consists in following a chronological order of arrival when picking goods. This method is very efficient in better managing perishable food products.

2. The principle of the LIFO system (Last In First Out)

Contrary to the FIFO principle, the LIFO system consists in taking out first the last products that have entered your stock. This method avoids a double access handling game. This method is very practical for traders of non-perishable products that have no use-by date.

The technique of managing storage space in a warehouse

There are several storage solutions. However, you need to know the best storage method suitable for your type of warehouse.

1. For manual handling of type B and C goods

For goods that require very few rotations, you can opt for these three storage systems:

  • On shelves in aisles
  • On mobile shelving with steering wheel and manual
  • Mass storage on pallets.

2. For manual handling of type A goods

For fairly hectic goods, you can choose from the following types of storage:

  • storage on shelving in aisles
  • dynamic storage on rails for assembly on station
  • Level storage on aisles, on a single level or mezzanines.

3. For automatic handling with machines



For automatic handling, the following types of storage are possible

    • Storage on pallets with extensions: for products requiring seasonal supplies
    • Storage on aisle racks
    • High bay storage: for narrow aisles
    • LIFO or FIFO storage: commonly used for beverages
    • Mobile base storage is the most expensive and most suitable for cold storage.

Sound off in the comments section below and tell us what you want to read next and if you want to read more about warehouses.

You may also like