What is bin tracking?
Bin tracking assigns every item to a specific bin: the smallest defined storage space in a warehouse, like a shelf, tray, rack slot, or container. It layers a precise location onto each item’s quantity, so your records answer both how many you have and where it sits. That precision matters because, per IHL Group inventory accuracy research, 78% of retailers deal with inventory inaccuracies on a weekly or monthly basis.
Key characteristics
- Location-level detail: every item ties to a specific bin identifier, not just a warehouse.
- Quantity by location: you can see how much of a stock-keeping unit (SKU) sits in each bin, so on-hand totals break down by place.
- Scan-driven updates: bins and items carry barcodes, so receiving, putaway, picking, and counts update records right away with barcode tracking software.
- Verified by counts: a routine cycle counting process confirms bin balances instead of relying on one annual count.
- Built on a naming scheme: bins follow a consistent aisle, shelf, and bin code so any worker can find a location.
Example
Mendingshed.com is a solid real-world example. After adopting Fishbowl’s warehouse location and bin features, the team cut order-picking time from two hours to about 15 minutes per 100 orders. Its Fishbowl case study has the details. Zoom out and the stakes are clear: research on inventory distortion losses shows the global retail loses $1.73 trillion annually due to inventory distortion (the cost of out-of-stocks and overstocks).
Related terms
FAQ
What is the difference between a bin and a location in a warehouse?
A location can be broad, like a whole zone or an entire warehouse. A bin is the smallest, most specific spot inside it, and bin tracking works at that granular level.
Do you need special software for bin tracking?
You can track bins on paper, but barcode scanning and inventory software keep bin balances accurate as items move. The 2025 Warehouse/DC Operations Survey found inventory accuracy is used as a management metric by 76% of surveyed DC operators, up from 70% the prior year.
Is bin tracking only for large warehouses?
No. Even a single small stockroom benefits, because bin tracking removes guesswork and speeds up picking.