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Zones and zone groups


Zones and zone groups are optional and used to organize warehouse locations and items based on their physical location within a warehouse.

A zone is a specific area within a warehouse that is designated for a particular purpose, such as receiving, picking, packing, or shipping. Zones are used to optimize warehouse operations by enabling more efficient movement of goods and reducing the time required for order processing.

A zone group is a collection of zones that are grouped based on their physical location within the warehouse. This grouping allows for easier management of inventory and more efficient movement of goods between zones within the same group.

In Dynamics 365, zones and zone groups can be used to define various parameters, such as item storage policies, put-away and picking strategies, and item replenishment rules. They are typically used to set up rules for location directives and wave templates, which are used to guide warehouse operations and optimize the use of warehouse resources. For example, when warehouse work is required to pick raw materials, it is possible to specify a zone or zone group to pick from rather than a specific location or aisle.


Zones and zone groups are configured in Warehouse management > Setup > Warehouse > Zones and Warehouse management > Setup > Warehouse > Zone groups respectively. an example of zones with their respective zone groups is shown below:

Zones are then applied to the locations via Warehouse management > Setup > Warehouse > Locations:

Learning with Microsoft

Further information related to zones can be found on Microsoft Learn within the Configure warehouse management in Dynamics 365 Supply Chain Management learning path via the URL below.

Configure the warehouse layout – Training | Microsoft Learn