GlossaryEN1 min readUpdated: Jun 22, 2026

Warehouse Segmentation Strategy

A distribution centre managing tens of thousands of active SKUs faces a concrete question: how to optimally allocate space, travel routes, and staff.

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Last updated: 22 June 2026Published: 19 June 2025

Source: https://www.inboundlogistics.com/cms/article/warehouse-segmentation/

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Definition & Explanation

A distribution centre managing tens of thousands of active SKUs faces a concrete question: how to optimally allocate space, travel routes, and staff. A warehouse segmentation strategy provides the conceptual framework to answer it. The strategy defines the criteria by which items are assigned to specific storage zones: common approaches rely on ABC classification by turnover velocity, item weight and volume, or order-profile-based clusters. Fast movers go to positions close to the dispatch area with short travel distances; slow movers occupy more remote locations. A consistently applied strategy measurably reduces picking times, lowers error rates, and lays the groundwork for future automation, since well-defined zones provide a clean basis for conveyor systems or autonomous mobile robots. Unlike the warehouse segmentation process, which covers the operational steps of implementation, the strategy sets the conceptual rules by which zones are defined in the first place.

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Warehouse Segmentation Strategy

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Related Terms

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