Articles - L Squared

Digital Signage: The Key to Smarter Warehouse Planning

Written by Gregg Forsberg | Feb 6, 2025 6:51:24 AM

In the early 1900s, Sears Roebuck became the Amazon of its time, pioneering catalog shopping. The secret? A warehouse system so efficient and smart it could handle thousands of orders with minimal errors.

But a smart warehouse layout isn’t just about shelving orders; it’s about optimizing every inch for maximum productivity, safety, and adaptability. 

Enter digital signage. With real-time updates, 3D modeling, and advanced automation, these digital displays ensure your warehouse layouts maximize their efficiency.

In this article, we will cover some of the important warehouse designs and layouts used in the industry, as well as some best practices you can follow to make the most use of them.

Understanding The Different Warehouse Designs and Layouts

Before going deeper into understanding how warehouse design ideas help improve operational efficiency, let's familiarize ourselves with the different types of warehouse designs and layouts.

1. U-shaped layout: A versatile classic

The U-shaped layout is one of the most common warehouse design ideas, featuring receiving and shipping docks positioned on opposite ends of the "U" while storage occupies the back.

Key benefits:

  • Efficient material flow: Products move seamlessly from receiving to storage, then to picking and shipping
  • Streamlined workflows: Minimizes the distance employees need to travel
  • Space utilization: Ideal for small to medium-sized warehouses

2. I-shaped layout: A straight-line efficiency model

The I-shaped layout plan of the warehouse arranges receiving on one end, storage in the middle, and shipping on the other. It’s particularly effective for high-volume operations.

Key benefits:

  • Simplified processes: Goods move linearly, making it ideal for assembly-line-style workflows
  • Optimized for automation: Works well with conveyor belts and AGVs
  • High throughput: Great for warehouses with high-volume shipments

Also Read: Navigating the Top 5 Manufacturing Challenges of 2025

3. L-shaped layout: The corner specialist

The L-shaped layout plan of the warehouse places receiving and shipping docks at adjacent ends, with storage nestled in the corner. This design is commonly used for cross-docking operations.

Key benefits:

  • Quick transitions: Minimizes handling time for goods that don’t require storage
  • Effective zoning: Keeps receiving, storage, and shipping logically separated
  • Compact design: Ideal for warehouses with limited floor space

4. Grid layout: A modular approach

The grid warehouse planning organizes storage into a systematic, aisle-based grid. It’s a favorite for warehouses with diverse product lines or large inventories.

Key benefits:

  • Flexible storage: Easily accommodates various product sizes
  • Maximized capacity: Makes the most of vertical and horizontal space
  • Ease of navigation: Defined aisles reduce the likelihood of misplaced goods

Recommended Warehouse Layouts

Best For

Why It Works

U-shaped layout

Small to medium warehouses with balanced receiving and shipping needs

Maximizes storage and ensures efficient material flow

I-shaped layout

High-volume operations requiring a straight-line workflow

Simplifies processes, making it ideal for fast-moving goods

Grid layout

Warehouses with diverse inventories or large-scale operations

Optimizes space and navigation, with clear zones for storage and picking

L-shaped layout

Cross-docking or warehouses with limited space

Streamlines handling and shipping processes

How to choose the right warehouse layout?

Selecting the ideal layout involves analyzing your warehouse’s workflow, inventory types, and operational goals.

Key considerations:

  • Volume and variety: High-volume operations may favor I-shaped warehouse planning, while diverse inventories might benefit from a grid layout
  • Space constraints: Smaller warehouses may find U-shaped or L-shaped layouts more practical
  • Technology integration: Digital signage can enhance any layout by improving communication, safety, and productivity

By combining these layouts with digital signage, warehouses can achieve smarter designs that adapt dynamically to their evolving needs.

How Digital Signage Helps in Optimizing Warehouse Designs 

Digital signage’s real-time alerts, instant notifications, and safety alerts help optimize warehouse operations. Let’s break down how it ties into different warehouse designs and types.

1. Real-time updates for streamlined operations

Digital displays provide live updates on inventory stock levels, helping prevent costly overstocking or shortages. For example, in U-shaped layouts, signage near the receiving area can display incoming shipments and current storage capacity, ensuring smooth material flow.

Also Read: Top 6 Benefits of Using Digital Signage in Warehouse Operations

Managers can also use digital signage to make on-the-spot schedule updates or reroute tasks. In I-shaped layouts, where high-volume operations demand precision, signage at key checkpoints can inform employees of delays or priority changes, minimizing downtime.

2. Enhanced navigation for better-managed processes

Navigating large or complex warehouses can be challenging, but digital signage simplifies the process.

Signage with clear maps and directions helps employees quickly locate items. In grid layouts, where zones for storage and picking are well-defined, digital displays can guide workers to specific sections, reducing travel time.

In busy warehouses, like those with L-shaped layouts, digital signage helps manage forklift and foot traffic. Displays positioned at intersections can alert operators to high-traffic zones or suggest alternate routes, reducing congestion and accidents.

3. Safety improvements for risk reduction

Real-time notifications on digital displays highlight areas with high forklift activity or equipment malfunctions. For instance, in I-shaped layouts, where straight-line workflows increase equipment movement, signage can warn of potential hazards.

Also Read:  Standardizing Training Across Shifts: How Digital Signage Ensures Consistent Knowledge Transfer 

Strategically placed displays reinforce safety protocols, such as wearing helmets or gloves. In U-shaped layouts, safety reminders near receiving and shipping bays ensure employees are protected while handling heavy machinery or materials.

If you’re looking to transform your warehouse operations with digital signage, book a demo today and elevate your efficiency!

Best Practices and Tools for Optimizing Warehouse Designs 

  • Leverage real-time technology: Use digital signage and WMS platforms like L Squared or SkuNexus to display live inventory levels and manage traffic flow in real-time for layouts like U-shaped or grid designs
  • Maximize vertical and horizontal space: Implement modular shelving and tools like SmartDraw or AutoCAD to utilize vertical storage effectively and plan traffic-friendly paths, especially for small or L-shaped warehouses
  • Enhance navigation and wayfinding: Use digital signage with wayfinding aids and IoT devices to guide employees, reduce congestion, and ensure efficient workflows in high-traffic zones of I-shaped layouts
  • Prioritize safety and compliance: Integrate safety tools like SafetyCulture iAuditor and OSHA-compliant digital signage to display hazard alerts, PPE reminders, and emergency protocols across the warehouse
  • Use data-driven decisions for continuous improvement: Rely on analytics tools like Tableau or Power BI alongside automated systems such as AGVs and RFID to refine layouts, picking routes, and resource allocation based on real-time performance metrics

Put Your Warehouse Woes on Pause with L Squared

Whether you’re working with a U-shaped design to streamline workflows, an I-shaped layout for high-volume efficiency, or a grid structure to manage diverse inventories, having the right tools is key to optimizing every inch of your space.

Digital signage is your one-stop solution for this.

With instant updates and multiple integrations with industry tools, digital displays do more than just look cool—they offer real-time guidance to improve workforce efficiency, reduce production errors, and enhance productivity. 

This is where L Squared steps in as a difference maker.

With over 17 years of experience and a proven track record with Fortune 500 companies, L Squared delivers the digital signage solution you’ll ever need.

With 24/7 live support and customizable features, you’ll have everything you need at your fingertips.

Ready to take the leap? Get in touch with L Squared today!

Frequently Asked Questions

1) What are the 4 types of warehouse layout?

The four types of warehouse designs and layouts commonly used are U-shaped, I-shaped, L-shaped, and grid layouts. U-shaped layouts are versatile and optimize material flow, while I-shaped layouts suit high-volume operations with straight-line workflows. L-shaped layouts are ideal for compact spaces or cross-docking operations, and grid layouts work best for warehouses with diverse inventories by maximizing storage and navigation efficiency.

2) What is the best layout for a warehouse?

The best warehouse plan depends on specific operational needs. For small to medium-sized facilities, a U-shaped layout offers efficient material flow and streamlined workflows. High-volume warehouses benefit from an I-shaped layout, which supports linear processes and automation. Meanwhile, diverse inventories or large-scale operations thrive with a grid layout, thanks to its well-defined zones and space optimization.

3) What are the five primary functions of a warehouse?

The five primary functions of a warehouse include receiving, storage, picking, packing, and shipping. Receiving involves inspecting and logging goods, while storage focuses on organizing inventory efficiently. Picking retrieves items based on orders, packing prepares them for shipment, and shipping ensures they reach their destination. A well-structured plan of warehouse operations ensures each function integrates seamlessly.

4) How to incorporate technical aspects in your warehouse layout?

Incorporating technical aspects into your warehouse planning involves leveraging tools like digital signage, WMS platforms, and IoT devices. For instance, digital signage can provide real-time updates on inventory levels or display navigation aids, ensuring efficient workflows. Automated systems like AGVs and RFID enhance the plan of warehouse operations by reducing manual tasks and improving accuracy. Integrating analytics tools like Tableau can further optimize layouts and picking routes for continuous improvement.