In any warehouse, stockroom or distribution centre, pickers make hundreds of small decisions every shift. Clear shelf labelling turns each of those decisions into a quick glance rather than a search. Get it right and picking speeds up, errors fall and new staff find their feet faster. Get it wrong and the cost shows up in mis-picks, returns and wasted time.
Why labelling has such a big impact
Most picking errors come down to two things: picking from the wrong location or picking the wrong item from the right location. Both are often caused by labels that are unclear, damaged, missing or inconsistent. Because labelling is cheap compared with almost any other warehouse improvement, it is one of the fastest ways to raise accuracy.
Build a logical location system first
Labels can only be as good as the system behind them. Before printing anything, settle on a consistent location code, typically aisle, bay, level and position. Every label in the building should follow the same format, read in the same order and sit in the same place on each shelf.
Best practices for clear shelf labels
- Use large, high-contrast text. Dark characters on a light background are easiest to read from a distance and in low light.
- Keep the format consistent. The same font, size and layout across the site helps pickers scan quickly.
- Add barcodes where you scan. Barcodes reduce keying errors and speed up confirmation.
- Position labels at a predictable height. Ideally the label sits directly below the product it identifies.
- Use colour coding with care. Colours can indicate levels, zones or product types, but keep the scheme simple and documented.
- Choose durable holders. Labels in clear holders or channels stay readable and are easy to swap when locations change.
Plan for change
Stock moves, ranges change and seasonal lines come and go. A labelling system that is hard to update quickly falls behind. Using label holders and channel strips, rather than adhesive labels stuck straight to the racking, makes changes quick and tidy. Ranges of shelf labels and indexing systems designed for racking let teams update locations in seconds without leaving residue or damaged signage behind.
Think about lighting and safety
Even the best label fails if pickers cannot see it. Check lighting levels at every level of racking, including the top and bottom shelves. Good visibility also supports wider workplace safety, and the HSE guidance on workplace safety is a useful reference when reviewing the warehouse environment as a whole.
Audit and maintain regularly
Labels get scuffed, peeled and knocked off. Build a simple audit into routine checks: walk each aisle, look for missing or damaged labels and confirm a sample of locations match the system records. Encourage pickers to report problems straight away, since they notice issues first.
Train with the system, not around it
New starters should learn the location code on day one. A short walkthrough showing how to read a label, where to look and what to do if a label is missing saves far more time than it takes.
Measuring the impact
Once a new labelling system is in place, measure the results. Track pick rates per hour, error rates and the time it takes new starters to reach full speed, then compare them with the figures before the change. Even small improvements add up across thousands of picks each week. These numbers also make it easier to justify further investment, such as extending the system to bulk storage areas, overflow locations or a second site.
Clear, consistent and easy-to-update shelf labels are one of the simplest ways to make picking faster and more accurate.
FAQs
What information should a shelf label include?
At minimum, a clear location code. Many warehouses also add a barcode and, where useful, a product description or SKU.
Should I use colour-coded labels?
Colour coding can help pickers find levels or zones quickly, as long as the scheme is simple and consistent across the site.
How often should shelf labels be checked?
Include labels in routine audits, ideally monthly, and replace damaged or missing ones immediately.
Are label holders better than adhesive labels?
Holders make labels easier to change and protect them from damage, which suits warehouses where locations change often.
What is the best location code format for a warehouse?
Most warehouses use an aisle, bay, level and position format, such as A-03-2-B. The exact structure matters less than using it consistently across every label and in the warehouse system.