How to Improve Warehouse Productivity with Better Layout and Fleet Planning
Most warehouses don't have a speed problem. They have a distance problem. Every extra foot a lift truck travels between receiving, storage and shipping costs labor time, energy and equipment wear. Those hours are harder to replace than they used to be. In the 2026 MHI Annual Industry Report, supply chain leaders ranked workforce and talent shortage as the second-biggest trend affecting their operations.
Last Updated: October 6, 2026
Research on order picking shows how much time travel consumes. A review in the European Journal of Operational Research puts travel at roughly 50% of an order picker's time. Forklift work isn't identical, but the lesson carries over: travel is usually the largest block of time you can remove without adding people or space.
This guide covers six ways to cut that travel, and how to tell whether your fleet is the right size for the work.
Signs Your Layout Is Costing You Productivity
- Products that are usually ordered together are stored far apart because of size or storage requirements.
- Your SKU count has grown, and new product lines went wherever there was open space.
- Aisles are congested with trucks, people and staged product.
- Dead-end aisles force trucks to turn around and backtrack.
- Damaged floors force detours or slower travel.
- Poor lighting slows travel and picking.
- Operators wait for a free truck, or a single truck makes repeated round trips.
If three or more of these sound familiar, the steps below will likely pay back quickly.
1. Map Your Product Flow
Start with a floor plan and draw arrows showing how product moves from receiving to storage to shipping. Where arrows double back, cross each other or run in opposite directions, you've found wasted travel. Walk the route with an operator, too. They know the detours that never show up on a drawing.
Then quantify it. Count trips and estimate distance for a typical shift in your busiest areas. That baseline tells you which change will pay off most and lets you prove the result afterward.
2. Re-Slot Products Based on Activity
- Place fast-moving items closest to where they go next, whether that's shipping, a production line or a pick zone.
- Store heavy and high-demand products at or near floor level.
- Spread high-velocity SKUs across aisles so trucks and pickers don't crowd into one.
- Re-slot before seasonal peaks, not after congestion appears.
3. Cross-Dock Where it Fits
Cross-docking moves product directly from inbound receiving to outbound shipping with little or no storage in between. It eliminates the putaway and retrieval trips entirely.
It works best for products with high volume and predictable demand, for shipments that arrive already labeled for their outbound destination, and for operations with reliable inbound and outbound schedules. It is a poor fit for items that need inspection, kitting or repacking, or whose demand is hard to predict.
4. Use Vertical Space and Narrower Aisles
Taller racking and narrower aisles put more storage locations within a shorter drive. That reduces travel and can delay the need for more buildings. Two cautions:
- Racking must be engineered for the location. Rack installed along side walls, over dock doors or above travel aisles should be designed to the ANSI MH16.1 standard for steel storage racks, with posted load capacities and required sprinkler clearances. OSHA also requires sufficient headroom under overhead installations and fire aisles kept clear (29 CFR 1910.178(m)(8) and (m)(14)).
- Narrow aisles need equipment built for them. Reach trucks and stand-up counterbalance trucks turn in much less space than a sit-down counterbalance forklift. Confirm aisle widths against your trucks' specifications before re-racking.
5. Fix Floors, Lighting and Traffic Flow
These are the least glamorous improvements, and often the cheapest.
- Floors: cracks, broken joints and debris slow trucks, wear tires and destabilize loads. Repairing the worst stretches of your busiest routes can raise travel speeds at little cost.
- Lighting: OSHA requires auxiliary directional lighting on the truck wherever general lighting is less than 2 lumens per square foot (29 CFR 1910.178(h)(2)). Good lighting throughout also speeds picking and reduces errors.
- Intersections: OSHA requires operators to slow down and sound the horn at cross aisles and other places where vision is obstructed (29 CFR 1910.178(n)(4)). Every blind intersection slows every trip through it. One-way aisles, separated pedestrian walkways and fewer blind corners keep traffic moving safely.
6. Right-Size Your Lift Truck
Fleet size is the other half of productivity. Too few trucks and operators wait, loads queue at the dock and each truck makes more round trips. Too many and capital sits idle while extra trucks add congestion. To find the right number:
- Measure real utilization. Hour meters and telematics show how much of a truck's time is spent traveling and lifting versus sitting keyed on or parked. Low utilization on some trucks alongside operators waiting for others usually means the wrong mix, not the wrong count.
- Plan for peaks, not averages. Size the core fleet for normal volume and cover seasonal spikes with short-term rentals.
- Match truck types to tasks. Pallet trucks for horizontal moves, reach trucks for narrow-aisle putaway, stand-up counterbalance trucks for tight dock areas and sit-down counterbalance trucks for general handling and trailer loading.
- Account for maintenance and charging. A fleet that looks right on paper falls short when trucks are down for service or waiting on a charge.
- Use your inspection records. OSHA requires trucks to be examined before being placed in service, at least daily (29 CFR 1910.178(q)(7)). Trends in those checklists show which trucks are costing you uptime and may be near the end of their useful life.
Metrics to Track
| Metric | What it tells you |
| Average travel distrance per move | Whether layout and slotting changes are working |
| Pallet moves per operator hour | Overall material handling productivity |
| Truck utilization (travel and lift time vs. key-on time) | Whether your fleet is the right size and mix |
| Operator wait time for equipment | Whether you have too few trucks at peak |
| Dock-to-stock time | How quickly receipts become available inventory |
| Product and equipment damage incidents | Whether congestion or floor conditions are causing problems |
For more information or tips on reducing your forklift fleet’s travel time, contact your local Cat Lift Truck dealer here.
Sources
1. MHI and Deloitte, "Rewiring the Future: A Supply Chain Playbook for Innovation," 2026 MHI Annual Industry Report. Summarized in MHI Solutions, June 26, 2026 and Business Wire, April 2026.
2. de Koster, R., Le-Duc, T., and Roodbergen, K. J. (2007). "Design and control of warehouse order picking: A literature review." European Journal of Operational Research, 182(2), 481–501. doi:10.1016/j.ejor.2006.07.009
3. U.S. Occupational Safety and Health Administration, 29 CFR 1910.178, Powered Industrial Trucks.
4. Rack Manufacturers Institute, ANSI MH16.1, Specification for the Design, Testing and Utilization of Industrial Steel Storage Racks. rmiracksafety.org
Frequently Asked Questions
The most common causes are layouts that force backtracking, poor product slotting, dead-end aisles, congestion at intersections, damaged floors and unnecessary handling steps, such as storing product that could be cross-docked.
Layout determines how far product, people and trucks move to complete each task. A layout with a clear one-direction flow and fast movers near their destination reduces travel, congestion and labor hours.
Compare truck utilization with operator wait time. If operators regularly wait for equipment at peak times, you may need more trucks or a different mix. If many trucks show low utilization, you may have too many.
Cross-docking moves products from inbound receiving directly to outbound shipping with minimal or no storage time. It works best for high-volume items with predictable demand.
Spread high-velocity products across aisles, set one-way traffic patterns, separate pedestrian walkways, remove dead ends and keep staging areas out of travel aisles.
They increase storage density and can shorten travel, but only with trucks designed for narrow-aisle work and racking engineered for the space.