What are bin location labels?

Warehouse bins are used in rack labeling schemes to manage and locate inventory quickly. Bins are at the end of the trail when employees are looking for a product needed for either a customer or one that will be used in the manufacturing process. Just like zones, aisles, racks, and shelves, bins also need to be labeled with what the industry calls a bin location label.

These location labels can take on a number of different forms, whether that be paper labels, oil and dirt resistant labels, magnetic labels, etc. However, they always include a barcode for scanning to keep track of how much inventory is being replaced or taken away. Bin location labels also include human readable letters and numbers in the case of manual inventory management where people have to find products stashed away on racks, bins and shelves. In some cases, location labels with human readable content are not necessary as sometimes these processes are entirely automated in technology driven facilities that are seeking to improve their efficiency. Regardless, a labeling system that uses bin location labels relies on clear communication for workers to be able to find product quickly and reduce the number of errors.

How to Read a Bin Label

It is recommended that bin location labels use both letters and numbers to make distinguishing SKU numbers and the location easier. Aside from that, an example of a bin number may look as follows:


This number can be read as:

Zone B, Aisle 7, Bay 11, Shelf 2, Bin 5

Depending on how large the facility is, the building may not have a need for either zones or bins. However, once a labeling system is chosen, it is best to stick with it to make sure everything is consistent for employees to be able to rapidly find needed materials.


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