One of the most overlooked aspects of making a distribution operation work at optimal levels is improving your facility’s slotting strategy. Warehouse slotting is moving your product to the most efficient locations to increase your order pickers rates with less time used handling/searching for the product. Our slotting analysis focuses on an economic based formula which optimizes your product location by cost of the storage space, equipment required, and storage medium. This software is also used to help prevent a facility move by providing a capacity analysis. There are three core areas we focus on when looking a slotting strategy for your company:
- Picking Operation
- Cost for replenishment
- Facility’s cost to store the product
By improving these three areas we are able to help clients eliminate overtime in picking processes, accommodate seasonality, plan for current marketing promotions, reduce replenishment cycles, reduce cost of holding excess inventory, and prevent a facility expansion due to space constraints.
As part of every slotting analysis project we design your system in 3D before making physical changes to your layout. This allows your team to physically see the changes prior to implementation and gain a deeper understanding of the impact of these changes.
Key Benefits of Our Slotting Analysis:
- Real time information on SKU inventory levels is provided
- SKU order volume for order history and forecasting are identified
- Product dimension and weight information are documented and stored in the system for proper sizing of storage locations
- Floor space costs are calculated to help identify the true value of each storage location in the facility
- Travel distances are minimized, resulting in higher pick efficiencies and lower equipment use
- Ergonomics are gains by placing high velocity and heavy products in the “Gold Zone” and assigning them to lower storage locations.
- Labor cost to pick a SKU is simulated giving it a true cost for the picking operation
To learn more about if your company is a candidate to improve efficiency with a slotting analysis please contact us using the consultation form below.