Slotting is a process to allocate storage locations and space for different skus in warehouse inventory. Slotting many skus in their correct places results in faster stock selection times, higher productivities, and greater satisfaction for customers.
SIGNS OF POOR SLOTTING
There are many indicators that your current product slotting may need attention, including:
- Inefficient use of storage space;
- Excessively large facilities and high facility costs;
- No space to accommodate new SKUs;
- Low productivity of order picking and replenishment operations;
- Frequent ergonomic related injuries.
There are three main types of information required to perform a slotting optimization:
- SKU Information – Information related to the dimensions, weight, demand, and other characteristics of the SKUs in inventory.
- Storage Information – Information related to the existing (or desired) configuration of the storage equipment, pick zones, and pick paths.
- Slotting Rules – Definition of the criteria used to determine the improved slotting plan.
BENEFITS OF WAREHOUSE OPTIMIZATION
With efficient slotting to improve your warehouse operations, you can:
- Avoid the cost of moving to a larger facility to handle more SKUs or higher inventory levels;
- Compress the footprint required by your existing operation, creating free space for other value-added activities;
- Improve the productivity and ergonomics of your order picking and replenishment processes.