Developing an efficient slotting plan from an in-depth slotting analysis is an essential element of effective warehouse operations. Proper slotting reduces labor costs and dramatically improves throughput by increasing pick and replenishment efficiencies, increasing order accuracy and reducing ergonomic risks. A successful slotting plan also improves inventory rotation requirements, such as First In First Out and Last In First Out.

To establish effective slotting, focus on determining the level where the product will be picked (full pallet, case pick or piece pick), storage medium (pallet rack, shelving, carton flow, etc.), tools used (paper pick sheets, voice-directed picking, pick-to-light, etc.) and method of picking. SKU information (such as product dimension, weight and on-hand quantity) are all key factors in these determinations.

Recent advances have greatly simplified this process. One such device not only calculates the length, height, width and weight of an item but also feeds these data directly into a mainframe or PC host. Collecting and entering the data can be completely automated, resulting in a significant reduction in the time, cost, labor and potential human error normally associated with performing the tasks manually.

The device uses reflected sound waves to determine the cubic dimensions of a product and an in-motion scale to weigh it. When the item first enters the device's detection zone, its bar code label is scanned. Once the product is identified, the machine emits a series of sound waves, capturing their echoes and using them to calculate its various dimensions. The device also weighs the product simultaneously. The data are displayed on a computer monitor and can be exported from the local system to a WMS or ERP system.

Another important factor in slotting analysis is product velocity, or how much and how often the SKU is picked over a period of time.

When considering SKU velocity, it's important to identify fast, medium and slow movers and place them in appropriate storage media. It's also crucial to examine both average and peak picking days and to store high-velocity SKUs in readily accessible and ergonomically friendly areas.

Lastly, know whether individual SKU velocities are affected by seasonality or special promotions.

Here are some common oversights to avoid when slotting your facility:

Lack of flexibility for changing SKU's or space needs. This can be a fatal flaw for companies with continuously changing SKU velocities or those facing significant growth.

Failure to consider product characteristics. An item's physical traits must be considered to increase pick and replenishment efficiencies and to ensure proper pallet or load-building.

Lack of a clear path for pickers. A congested route poses a safety hazard and increases order fill times.

Improper storage media. Choosing storage media without considering SKU data often proves to be an expensive mistake.