Locations and Sub-Locations Explained

Last updated: January 22, 2026

Context

Depending on the current state of affairs at your company, location naming conventions and use may or may not already be defined. Below we discuss how Arda thinks about locations and how we go about setting up when we do onsite installs where one doesn't exist.

Answer

Definitions

  • Location: A real physical area someone can point to (building, warehouse, shop, cage). Keep these few and stable.

  • Sub-location: The exact “put it here” spot inside a Location (rack, shelf, bin, drawer).

  • Card: Moves through the ordering and restocking workflow.

  • Label: Stays on the shelf/bin.

  • Breadcrumb: A label at point-of-use that tells people where to go get more.

Rules for defining and setting

Rule 1: One “truth” location per inventory loop

Default: Pick one central stocking Location (“supermarket”) where the reorder loop lives.

  • Set the item’s home to that Location.

  • Put breadcrumbs at point-of-use spots that point back to the central stocking Location.

When to split into two loops:

  • If two areas are too far apart to share one restock path, treat them as separate loops (often separate items/cards).

Rule 2: Locations are for people; Sub-locations are for precision

  • Create Locations that match how people talk.

  • Create Sub-locations only when it saves real time or reduces errors and when organization is relatively stable.

Examples:

If using Sub-location

  • Location = Supply Room, Warehouse, Tool Crib, Bathroom,

  • Sublocation = A-03-02-B

If not using Sub-locaiton

  • Location: Hardware shelf, Tool Crib, Bay 3

Rule 3: Use a naming system that prints well

Your names should be:

  • short

  • readable from a distance

  • stable over time

Recommended format:

  • Location: SITE / AREA

    • Examples: HQ / Warehouse, HQ / Shop Floor, Site B / Warehouse

    Sublocation: ZONE-AISLE-BAY-LEVEL-BIN (only include what exists)

    • Examples: A-03-02-B, FLOW-02-07, CAGE-01

Start simple if needed:

  • SHELF-1, BIN-12, DRAWER-4

Rule 4: Design around the workflow

Create Locations that match the flow:

  • Receiving

  • Putaway / Storage

  • Pick area (if separate)

  • Pack / Ship

  • Returns / Quarantine

  • Supplies staging

Rule 5: Use breadcrumbs for point-of-use chaos

Use breadcrumbs when:

  • Many people consume the item at benches/work cells.

  • You want fast access without managing inventory at each bench.