Setup Guide for Locations, Bins, and Policies – Discrete Manufacturing

Real-World Example: Discrete Manufacturing for Cars (EV Manufacturing).

Industry: Automotive – Manufactures electric cars (EVs), including battery packs, drive units, and vehicle bodies.

Warehouse Structure:

• Main Plant (FREMONT) – Vehicle Assembly, Battery Assembly, Raw Material Storage, WIP
• Parts Distribution Center (PDC-FRESNO) – Finished components, shipping, export logistics
• Rework & QA Facility (RENO) – Re-inspection, quality analysis, parts salvaging

Main Plant (FREMONT)

└──  Location: PLT-FREM (Fremont Vehicle Assembly Plant)

           └──   Zone: BAT-IN (Battery Cell Receiving Area)

└──  Bin: BAT-C1-S01 (Column 1, Shelf 1)

└──  Bin: BAT-C1-S02 (Column 1, Shelf 2)

└──   Zone: WIP-ASSY (Work-In-Progress Assembly Line)

└── Bin: WIP-BODY-A1 (Body Shell Staging, Aisle 1)

└──  Bin: WIP-DRIVE-A2 (Drive Unit Staging, Aisle 2)

└──   Zone: FAST-TRACK (High-Priority Urgent Parts)

└──  Bin: FP-A1-S01 (Fast-moving ECUs, Shelf 1)

└──  Bin: FP-A1-S02 (Mounting Screws, Shelf 2)

Parts Distribution Center (PDC-FRESNO)

└──​Location: PDC-FRESNO (Parts Distribution Center – Fresno)

└──​ Zone: INBOUND
└──​ Bin: INB-D1-S01 (Dock 1, Shelf 01)
└──​ Bin: INB-D2-S01 (Dock 2, Shelf 01)
└──​ Zone: BULK-STORAGE
└──​ Bin: BLK-R01-P01 (Row 01, Pallet 01)
└──​ Bin: BLK-R01-P02 (Row 01, Pallet 02)
└──​ Zone: PICK-FACE
└──​ Bin: PF-A1-B1 (Aisle 1, Bin 1)
└──​ Bin: PF-A1-B2 (Aisle 1, Bin 2)
└──​  Zone: OUTBOUND
└──​ Bin: OUT-D1-S01 (Dock 1, Shelf 01)
└──​ Bin: OUT-D2-S01 (Dock 2, Shelf 01)

Rework & QA Facility (RENO)

└── Location: QA-RENO (Rework & QA Facility – Reno)

└──Zone: QA-INCOMING
└──Bin: QA-IN-A1 (Aisle A1 – Received Components)
└──Bin: QA-IN-A2 (Aisle A2 – Batteries & Wiring)
└──Zone: REWORK
└──Bin: RW-BAY1 (Bay 1 – Engine Modules)
└──Bin: RW-BAY2 (Bay 2 – Drive Units)
└──Zone: QA-HOLD
└──Bin: HOLD-01 (Pending Re-inspection)
└──Bin: HOLD-02 (Pending Supplier Response)
└──Zone: QA-APPROVED
└── Bin: QA-OK-A1 (Ready-to-Ship – Shelf A1)
└── Bin: QA-OK-A2 (Ready-to-Ship – Shelf A2)

Step 1: Define Warehouse Locations

Navigation:
Business Central → Search → Locations → New

Location Setup:

Naming Tip:
Use [ROLE]-[CITY CODE] for scalable, multi-location logistics.

e.g., PDC-FRES = Parts Distribution Center in Fresno

Real-World Insight:
some of car manufacturers use clear codes across multiple plants to track global inventory movement efficiently.

Step 2: Configure Warehouse Zones

Navigation:
Search → Zones → New → Assign per Location

VoltDrive Zones by Location:

Warning:
Zones must reflect actual workflows — placing WIP and finished goods in the same zone risks quality failures and confusion in pick/ship operations.

Pro Tip:
Use priority-based zones like FAST-TRACK to handle urgent vehicle components (e.g., semiconductors or ECUs) with a separate workflow.

Step 3: Set Up Bins with Real-World Naming Conventions

Navigation:
Location → Select → Bins → New

VoltDrive Bin Labeling Strategy:

Best Practice:
Mirror bin code structure to facility layout (columns, racks, shelves).

Automotive logistics teams use standard bin naming for handheld device scanning and AGV (automated guided vehicle) routing.

🚫 When NOT to Use Bins:
In WIP-ASSY area of PLT-FREM, bins are skipped to allow free transfer of frames and body shells via conveyor belts and AGVs — trying to track bins here adds no operational value and slows production.

Step 4: Apply Warehouse Policies Based on Role

Navigation:
Location → Select → Warehouse FastTab

Real-World Insight:

PDC-FRES implements Directed Put-away and Pick to optimize space usage and reduce walking time during high-volume picking.

This is aligned with practices seen in different cars manufacturing parts distribution centers.

Pro Tip:

Enable Breakbulk for parts that arrive on mixed pallets (e.g., bolts, wires, and fuses shipped together), but need separate storage.

Summary of the Real-World Car Manufacturing Setup

Zone:

• FAST-PICK: Contains bins for fast-moving items like screws and sensors.
• REWORK: Where defective parts go for testing or disassembly.

Bins in FAST-PICK:

• FP-A1-S01: Shelf A1, Slot 01 with wiring harnesses
• FP-A1-S02: Shelf A1, Slot 02 with mounting screws

Operations:

• Warehouse workers pick orders only from the FAST-PICK zone during rush assembly.
• System assigns them to bins like FP-A1-S02 inside that zone.

Pro Tips:

If you’re using barcode scanners, match bin naming conventions to reduce scan errors.

Further Readings:

• Warehouse Picks in Business Central: Fulfill Orders Fast
• Inventory Put-Away Made Simple
• Microsoft Docs: Set Up Warehouse in Business Central
• If you’re planning for implementation, support or upgrades in Microsoft Dynamics 365 business central or NAV, check out our Business Central consulting services for tailored implementation and support.

💡What you have learned in this post:

• How to configure bins and zones in Business Central
• What is directed put-away and pick in Business Central
• Can I use multiple zones in a single location in Business Central?
• How to structure warehouse bins for efficient picking in Dynamics 365
• What’s the difference between “Use Bins” and “Directed Put-away”?