20 Aug 2025 15 min read

5 Storage Layout Mistakes Costing Your Business Time & Money

Poor storage layouts waste time, space, and money. Here are the top mistakes businesses make and how to fix them:

Unplanned Shelving Placement: Misplaced shelves lead to bottlenecks and wasted space. Use vertical storage and adjust aisle widths for better efficiency.
Overstocking: Excess inventory ties up cash and increases storage costs. Use inventory control strategies like ABC analysis and demand forecasting.
Inconsistent Labelling: Poor labels confuse staff and slow operations. Use clear, bilingual (Arabic & English) labels, barcodes, or RFID tags.
Ignoring Climate Control & Security: Bahrain's heat and humidity can damage goods. Invest in temperature control and secure storage systems.
Lack of Digital Tools: Manual systems cause errors. Upgrade to Warehouse Management Systems (WMS) for real-time tracking and automation.

Key takeaway: Fixing these issues saves time, reduces costs, and improves customer satisfaction.

Mistake 1: Poor Shelving Placement

A common error many businesses make is placing shelves without proper planning, which can create bottlenecks and result in wasted storage space. In Bahrain's competitive business landscape, where every square metre comes at a premium, such inefficiencies can directly affect profitability.

Often, shelves are installed based on convenience rather than a well-thought-out strategy for workflow and space utilisation. This can lead to issues like shelves being placed too low, aisles being unnecessarily wide, and storage areas not fully utilising available space. The result? Higher rental costs and frustrated staff struggling to locate inventory efficiently.

Strategic shelving placement is about more than just cramming more items into your storage area. It's about designing a system that enhances operations, saves employees time, and minimises disruptions.

Using Vertical Storage Space

One of the most overlooked opportunities is the underuse of vertical space. Many businesses focus solely on floor-level storage, ignoring the potential of their facility's full height. In Bahrain, where ceiling heights in commercial spaces often range from 3.5 to 4.5 metres, this represents a significant opportunity.

By adopting vertical storage solutions, businesses can increase their inventory capacity without expanding their floor area. Installing shelves that reach the full height of your facility can dramatically boost storage potential. However, this requires careful planning to ensure both safety and ease of access.

When organising vertical storage, it’s important to consider the weight and frequency of use for stored items. Heavier, frequently accessed items should be placed at waist height (around 0.8–1.2 metres) for easy retrieval, while lighter, less-used items can be stored higher up, accessed with step ladders when needed.

To maximise efficiency, implement a system where items are stored based on how often they’re used. Daily-use items should be easily reachable, while seasonal or backup stock can occupy higher shelves. This approach not only optimises vertical space but also improves workflow, as employees spend less time searching for what they need.

Reducing Aisle Widths and Grouping Items

Beyond shelving, optimising aisle width and item grouping can further enhance storage efficiency. Many businesses create aisles that are unnecessarily wide, wasting valuable floor space. For example, the common practice of leaving 1.5 to 2-metre-wide aisles often exceeds what’s actually required.

Aisle width optimisation should align with your operations and equipment. For manual picking, aisles as narrow as 0.9 to 1.2 metres work well, allowing for easy movement while maximising storage density. If trolleys or small equipment are used, aim for widths of 1.2 to 1.5 metres. Wider aisles are only necessary if your operations involve forklifts or large machinery.

In addition to aisle adjustments, strategic item grouping can significantly reduce the time employees spend navigating storage areas. Group items that are frequently used together in close proximity. For instance, if certain products are often picked together for orders, storing them side by side can save valuable time during retrieval.

Another effective strategy is zone-based storage, where specific areas are designated for different product categories or business functions. This not only reduces confusion but also simplifies training for new employees and streamlines inventory management. When employees know exactly where to find specific items, retrieval becomes quicker and more efficient.

Combining narrower aisles with logical item grouping can increase storage capacity by 20 to 30%, all while improving operational flow. In Bahrain’s business environment, where efficient use of space directly impacts profitability, these strategies can make a noticeable difference.

Mistake 2: Overstocking and Poor Inventory Control

Having enough stock to meet customer demand is crucial, but many businesses in Bahrain fall into the trap of overstocking. The assumption that keeping more stock on hand prevents shortages often leads to costly inefficiencies instead.

Think of inventory management like organising your shelves at home - when done right, it saves space and reduces waste. Overstocking happens when businesses buy or produce more inventory than they can realistically sell within a reasonable period. In Bahrain's fast-changing market, where consumer preferences shift quickly and seasonal demands fluctuate, holding onto excess inventory can quickly become a financial headache. Globally, inventory inefficiencies cost $1.9 trillion in 2022 - a 12.7% jump from 2020 figures. For businesses in Bahrain, these inefficiencies could mean lost opportunities to reinvest in growth or improve operations.

Problems with Overstocking

Excess inventory isn’t just about having too much stock - it ties up valuable cash that could be used elsewhere. It also drives up storage costs, insurance expenses, and the risk of losses from damage, theft, or shrinkage. Overcrowded storage spaces can slow down operations, making it harder to retrieve items and reducing overall productivity.

Another issue is obsolescence. Products with expiration dates, seasonal items, or tech-related goods can quickly lose their value. For instance, nearly 8% of online sales are abandoned because items are unavailable. On top of that, storing sensitive items that require climate control adds another layer of expense.

Smarter Inventory Management

To tackle these challenges, businesses need to adopt smarter inventory control strategies. By following best practices, companies can cut inventory carrying costs by up to 20%.

ABC Analysis: This method helps businesses focus on what matters most. Inventory is divided into three categories: A items (high value, low quantity), B items (moderate value and quantity), and C items (low value, high quantity). For Bahraini businesses, prioritising high-value A items while streamlining systems for lower-value items can optimise stock levels effectively.
Just-in-Time (JIT): JIT aligns inventory orders closely with demand, helping reduce storage costs and avoid excess stock. However, the pandemic exposed some risks of relying solely on JIT, prompting many businesses to adopt a hybrid model that includes a safety stock of critical items.
Reorder Points and Minimum Thresholds: Setting automatic triggers for replenishment based on factors like lead times and average demand ensures a steady supply without overstocking. For example, using historical sales data can help businesses calculate more precise reorder points.
Demand Forecasting: Combining historical sales data with market trends and external factors can improve inventory planning. AI and machine learning tools have shown to increase inventory accuracy by 35%. Even smaller Bahraini businesses can benefit by analysing seasonal trends, promotional impacts, and broader economic indicators.
Regular Audits and FIFO: Conducting regular inventory checks and using the First-In, First-Out (FIFO) method can help prevent obsolescence and maintain accurate records.
Inventory Management Software: Technology can be a game-changer. Software solutions provide real-time stock visibility, automate alerts for reorder points, and offer insights into item movement patterns, helping businesses make better decisions.

The key to successful inventory management is finding the right balance for your business. Whether you’re dealing with fast-moving consumer goods or industrial components, understanding your market, customers, and supply chain is essential. For Bahraini businesses, these strategies provide a clear roadmap to cut costs and streamline operations while maintaining high service levels.

Mistake 3: Poor Labelling and Signage

Clear labelling is just as crucial as proper shelving and inventory control when it comes to keeping operations smooth and cutting down on labour costs.

Imagine trying to find a single item in a chaotic storage area - it’s a time-consuming task that drains productivity and drives up costs. When labels and signs are unclear, the confusion spreads across your entire operation, slowing down workflows and increasing the chances of mistakes. In Bahrain, where many businesses have multilingual teams, unclear labels can make things even more complicated.

The consequences go far beyond inconvenience. If warehouse staff spend extra time hunting for items, labour costs rise. Mislabelled products can lead to shipping errors, unhappy customers, and costly returns. In some cases, poorly labelled sensitive items might be stored incorrectly, resulting in damaged goods and financial losses.

Picture this: an employee needs to grab a specific component but faces inconsistent labelling. Some shelves use product codes, others have descriptions, and date formats vary. A task that should take two minutes stretches into ten. Multiply that by dozens of retrievals a day, and the inefficiency adds up quickly.

Creating Standard Labels and Signs

A consistent labelling system can turn a messy storage area into a well-organised, efficient space. For businesses in Bahrain, this means designing labels that cater to diverse teams while maintaining clarity.

Bilingual labels: Include both Arabic and English text to make sure all team members can navigate the system confidently. This reduces miscommunication and speeds up item retrieval, no matter the shift or department.
Consistent date formatting: Stick to the DD/MM/YYYY format for all dates - whether for expiry, receipt, or inspection. This eliminates the risk of using expired items or missing maintenance deadlines.
Colour-coding: Assign colours to different categories or priorities. For instance, use red for high-priority items, blue for standard inventory, and yellow for items needing special handling. These visual cues make it easier to locate items quickly.
Label size and placement: Ensure labels are large enough to read from a normal working distance and positioned consistently - ideally at eye level or slightly below. Laminated labels are a great choice for durability in busy environments.
Numeric coding: Combine numbers with descriptive labels to create unique identifiers for items and locations. For example, a code might start with zone digits, followed by aisle and shelf numbers. This system reduces errors and simplifies retrieval.

Once you’ve established a consistent manual labelling system, technology can take it to the next level.

Using Barcode and RFID Technology

Modern tools like barcodes and RFID tags can turn a manual labelling system into an automated, error-resistant workflow. These technologies are becoming increasingly accessible and practical for businesses in Bahrain.

Barcode systems: Barcodes are cost-effective and easy to implement. Assign each item a unique barcode linked to your inventory database. With a quick scan, staff can access details like description, location, quantity, and handling instructions - no need to decipher handwritten labels. This speeds up retrieval and is especially helpful during busy periods or for new employees.
RFID technology: RFID tags go a step further by allowing items to be tracked without direct scanning. They can be read from several metres away, making it easy to perform bulk inventory counts or monitor item movement in real time. This is particularly useful for high-value goods or items requiring strict chain-of-custody tracking.
System integration: Pairing barcodes or RFID with your inventory management system ensures real-time updates. When items are scanned in or out, stock levels adjust automatically, reorder alerts are triggered, and location records stay accurate.
Mobile compatibility: Many modern systems work with smartphones and tablets, so staff can access inventory data, update records, or even print new labels from anywhere in the facility.

Investing in digital labelling technology often pays for itself by reducing labour costs, cutting errors, and improving inventory accuracy. For Bahraini businesses handling diverse products or managing multiple locations, these tools provide the consistency and reliability that manual systems alone can’t achieve.

Mistake 4: Ignoring Climate Control and Security

Overlooking climate control and security measures can wreak havoc on stored inventory, especially in Bahrain's challenging environment. Without proper systems in place, businesses risk financial losses due to damaged goods, theft, or deteriorated products. These aren't just operational hiccups - they can disrupt supply chains and strain customer relationships.

Bahrain’s high temperatures, fluctuating humidity, and potential security gaps create a perfect storm for inventory damage. For instance, electronics might malfunction, documents could degrade, and pharmaceuticals may lose their effectiveness if not stored under the right conditions. Imagine temperature-sensitive medical supplies left in an uncontrolled storage facility during the scorching summer months - excessive heat could render them unusable. Add insufficient security, and the risk of theft or tampering with high-value items multiplies.

Why Climate-Controlled Storage Matters

Bahrain's climate poses unique challenges, making environmental control a must for inventory protection. The extreme summer heat can warp or damage sensitive items like electronics and pharmaceuticals, while inconsistent humidity levels - common in coastal areas - can lead to rusting metals, deteriorating paper, or failing adhesives. On the flip side, overly dry conditions can make some materials brittle.

To avoid these issues, maintain stable temperatures and humidity levels as per manufacturers' recommendations. Temperature-sensitive items like perishables, electronics, and pharmaceuticals should be stored in conditions that protect their quality, reduce waste, and extend shelf life.

Investing in climate control systems, such as HVAC units, proper insulation, and monitoring tools, can significantly reduce the risk of product loss. While the upfront cost may seem high, the long-term savings from preventing inventory damage often outweigh the initial expense.

Setting Up Secure Storage Practices

Once climate concerns are addressed, the next step is ensuring robust security for your inventory. A combination of access controls, secure packing, and monitoring systems can help protect high-value items.

Start with reliable electronic access controls. Key card systems, for example, offer better security than traditional keys, which can be lost or duplicated. For highly sensitive inventory, biometric locks using unique identifiers like fingerprints provide an additional layer of protection.

Secure packing is equally important. Use tamper-evident seals to safeguard items during storage. Smaller or high-value items, such as electronics, can be stored in locked cabinets or security cases within the main storage area.

Regular inventory checks are essential to catch any discrepancies early. Barcode or RFID systems can simplify this process, ensuring any issues are promptly addressed. Surveillance systems also play a vital role in deterring theft and providing evidence if an incident occurs. Position cameras to cover all entry points and critical areas, and consider systems that send alerts for unusual activity outside regular hours.

Finally, staff training is key to maintaining a secure storage environment. Employees should be well-versed in access protocols, handling procedures for valuable items, and how to report suspicious activity. Clear guidelines, such as requiring escorts for visitors, further strengthen security protocols and reduce risks.

Mistake 5: Not Using Digital Tools and Resources

Some Bahraini businesses still rely on outdated manual systems like paper-based tracking and handwritten labels. While these methods might feel familiar, they often lead to inefficiencies such as inaccurate inventory counts, misplaced items, and delayed orders. These errors can strain customer relationships and, ultimately, hurt your profits. In Bahrain's competitive market, businesses that don’t embrace modern digital solutions risk being outpaced by more tech-savvy competitors.

The good news? Digital transformation isn’t as daunting or expensive as it might seem. Many tools can integrate smoothly into your existing operations without requiring extensive staff retraining. The key is finding solutions tailored to your business size and specific needs. By upgrading to digital systems, you can eliminate manual bottlenecks and create a faster, more reliable operation.

Benefits of Warehouse Management Systems (WMS)

Warehouse Management Systems (WMS) are game-changers for inventory management. They automate routine tasks and provide real-time visibility into stock levels, replacing error-prone manual processes with streamlined, automated tracking.

With a WMS, every item is tracked from the moment it enters your facility until it leaves. This means less time spent hunting for products and fewer errors in inventory counts. Instead of manually updating spreadsheets or checking shelves, employees can scan barcodes or RFID tags to instantly update records.

These systems also offer real-time tracking, automated alerts, and insightful reports, allowing managers to allocate resources more effectively. For example, when stock levels dip below a set threshold, the system sends an alert to prevent stockouts. It can also highlight slow-moving items that take up valuable space and tie up capital.

Another major advantage is the reduction in item-picking time. A WMS calculates the most efficient routes through the warehouse and groups orders to minimise travel time, significantly speeding up the picking process compared to manual methods.

Integration is another strength of modern WMS. They can connect seamlessly with accounting software, e-commerce platforms, and customer relationship management systems, eliminating duplicate data entry and ensuring smooth information flow across your business.

Choosing Tools for Local Needs

When selecting digital tools, it’s crucial to consider Bahrain’s specific business requirements. For instance, systems must be compatible with the Bahraini Dinar (BHD), ensuring reports and invoices are formatted correctly in the local currency.

Bilingual support for Arabic and English is also essential. Many Bahraini businesses employ a diverse workforce, and offering system interfaces in both languages can improve productivity, reduce training time, and minimise errors caused by language barriers.

Metric system compatibility is another key factor. Your system should handle standard units like kilograms, metres, and litres for inventory tracking and shipping calculations, with the flexibility to convert measurements for international transactions.

Local date and time formatting (DD/MM/YYYY) is vital for clear record-keeping, especially when tracking expiry dates, delivery schedules, and inventory turnover rates.

Cloud-based solutions are particularly advantageous in Bahrain. They ensure reliable access even during power outages, enable remote monitoring of warehouses, and automatically back up critical data. Plus, they can easily scale as your business grows, saving you from costly hardware upgrades.

Mobile compatibility is becoming increasingly important. Managers often need to oversee operations while traveling between locations or working remotely. Look for mobile apps that offer full functionality, not just basic viewing features.

Compliance with local regulations is another must. Choose systems that generate detailed audit trails and maintain transaction histories to meet Bahrain’s record-keeping and inventory documentation requirements.

Finally, consider the total cost of ownership. Beyond the initial purchase price, factor in expenses like training, ongoing support, and integration. Many vendors offer flexible pricing models, allowing you to start with basic features and expand as your needs evolve.

Prioritising data security is non-negotiable. Your system should include encryption, user access controls, and regular security updates to protect sensitive business information and comply with Bahrain’s data protection laws.

Conclusion: Key Points for Better Storage Layout

In Bahrain's competitive market, effective storage solutions can significantly enhance both productivity and profitability. By focusing on shelving, inventory control, labelling, climate management, and incorporating digital tools, businesses can see tangible improvements in their operations.

Start by making the most of vertical space. Use taller shelving units and position items strategically to optimise accessibility. Group similar items together and keep aisles clear to speed up order picking and streamline workflows.

Next, improve inventory management with regular stock audits, demand planning, and just-in-time ordering. This approach helps you avoid overstocking, reduce handling expenses, and maintain an efficient inventory turnover. Setting minimum and maximum stock levels for each product category ensures smoother operations.

Standardise your labelling system with bilingual labels in Arabic and English. Whether you choose colour-coded tags, barcodes, or alphanumeric systems, a consistent approach minimises training time and reduces the risk of errors during picking and restocking.

Control your storage environment to protect sensitive and high-value items. Bahrain's humid conditions can lead to moisture damage, so climate-controlled facilities are essential for preserving inventory quality. Combine these measures with robust security systems to safeguard your assets.

Finally, leverage digital tools designed for the local market. Invest in warehouse management systems that support Bahraini Dinar (BHD), bilingual interfaces, and local compliance standards. Cloud-based solutions offer the scalability and flexibility needed to adapt as your business grows and evolves.

FAQs

What are the best ways for businesses in Bahrain to use vertical storage efficiently and safely?

To make the most of vertical storage in Bahrain, businesses should prioritise utilising vertical space efficiently. Options like automated lift systems and adjustable shelving units are great for saving space while minimising the risks linked to manual handling. Given Bahrain's hot and humid climate, maintaining proper climate control is crucial to protect inventory from damage and to create a safe work environment for employees.

It's equally important to adhere to local safety standards. This includes ensuring the stability of tall storage structures and providing thorough training for staff who work with vertical storage systems. Adding clear labels and arranging items based on how often they're used can further boost both safety and efficiency. By adopting these strategies, businesses can keep their storage areas secure, organised, and productive.

How can businesses in Bahrain use digital tools like Warehouse Management Systems to improve inventory accuracy and efficiency?

Bahraini businesses can greatly improve their inventory accuracy and streamline daily operations by implementing Warehouse Management Systems (WMS) and other customised digital tools. Opting for cloud-based systems is a smart move, as they provide real-time inventory tracking and integrate effortlessly with existing ERP systems. To fully unlock the potential of these tools, it's essential to ensure employees are well-trained in using digital workflows.

Many WMS options available in Bahrain come equipped with features such as space optimisation, secure data encryption, and adherence to local regulations. These features not only simplify inventory management but also help businesses cut down on errors, operate more efficiently, and save valuable resources like time and money.

How can businesses in Bahrain create effective labelling systems for a multilingual workforce?

To design effective labelling systems for Bahrain's multilingual workforce, businesses can rely on universal symbols and icons paired with text. This combination ensures clarity across various languages. Adding straightforward visuals, colour codes, and brief text makes labels easier to understand, minimising confusion.

Another key step is using a centralised labelling system. This ensures all language versions remain consistent and accurate. Such an approach not only streamlines operations but also supports inclusivity, reflecting the diversity of Bahrain’s workforce.