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What is slotting and why is it an important productivity tool?

Aspects are shorthand terms for the process of allocating products, (SKUs), to locations in the Warehouse according to business rules and product characteristics. It is usually limited to pick or online positions, however it can impose some general rules for stock placement in bulk areas in order to increase additional efficiency.


There is another way to improve your warehouse productivity.


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High level of Slotting is the minimum requirement to make a new facility. Detail The approximation is relatively rare in new or existing operations. In the infrequent times that Slotting is mentioned in the trade articles claiming significant productivity benefits are realized. (See “Modern material handling January 16, 2006”).



Why should you consider this aspect of your business?



  1. You are rearranging your current warehouse layout

  2. You are building a new facility

  3. Are you trying to reduce your warehouse operating costs?

  4. You operate in a seasonal industry that drives different product demand cycles throughout the year

  5. You want to reduce the movement of warehouse workers around the warehouse

  6. You want to reduce product damage in stock


Trading profits on regular detailed programs may include:



  1. Improve order picking efficiency

  2. Reduce product damage

  3. Enhance the effect of add-on and take-away

  4. “Health check” of face design


Improve order picking efficiency


Selecting productivity can be improved by slotting products according to the motion characteristics. Rapid movers can be placed near conveyors and aisles to reduce travel and ease access to sites, (sweet spots). Items that are frequently picked together can be placed in positions neighboring location. In the larger selection of conveyor systems the selector operation can be balanced by area ensuring even product concentration and reducing congestion in the pick area.



Reduce product damage


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Product damage can be reduced by allocating locations according to SKU characteristics, (e.g. keeping fragile items away from the direct container of the carton, ensuring that heavy items are placed within sweets, etc.). Heavy items can be placed at the beginning of runs, make sure they are placed on a pallet or in a tote/carton first to eliminate crushing of other products.



Enhanced replenishment and take-away effect


A quantity rule kept at each SKU location can be set, (e.g. “There must be a minimum of one week and the slot and replenishment capacity must allow for a minimum replenishment number of lots carton”,) reduces the additional frequency and ensures that the stock does not need to be held in a temporary position due to lack of position capability.


Operations with a large number of products or family groups often have SKUs provided by one or a few vendors. Notching can allow grouping of these products in areas of the pick face reducing the travel required for direct replenishment from receipt. While inventory quantities can be held in random locations, they can also be divided into regions and vendor-specific SKUs placed randomly but in areas near the customer's pick up location. surname.



Health check” of selected face design


Continuous Slotting will highlight any mismatch between the pick-face configuration and the requirements of the SKU range, throughput, and Slotting rules. Change is inevitable and what is required when the façade is designed and installed is more likely to not fit next year's business profile. Slotting can allow companies to recognize mismatches and balance the costs of inefficiencies and the capital needed to reconfigure.



With all these advantages, why does Slotting lack from the operational management toolbox?


Slotting is not a panacea, and to be effective requires support and input from areas other than warehouse operations.


Reference: What does COD mean – What is COD shipping service and how?


Slotting requires accurate SKU analysis and transaction data. SKU data, usually Product Master File, (PMF), must be maintained, and changes in packaging, size and unit of sale etc are captured before the product hits the floor.


This in turn entails the implementation and enforcement of vendor standards and protocols for the introduction of new products. Buyers/marketers should provide likely demand estimates for all new products. The S&OP must be on the ball so no surprise promotions etc. Accurate data on the configuration of the pick face with its position size, type and numbering system is essential.


Slotting is a valuable tool; However, except for the base campaign sales support, it is not an ongoing requirement. Usually notching can be done at seasonal or quarterly changes. The anomaly of this requirement often makes it easy to place Slotting on the rear burner until there is no fire to fight, and unsurprisingly this never happens.


Re-aspecting the entire selection side is an expensive time consuming business. The approach should be that only the worst positioned SKUs are identified and re-slotted in each slotting exercise. Seasonal changes, (for sunshade products with cold and flu SKUs), should be planned in advance and requirements factored into the initial selectivity configuration.



What tools are available to me?


There are software tools available. Major WMS vendors usually have a notch module in their software suite. There are stand-alone programs, of varying capabilities, available.



What can I do for my business?


Grooved applications can be expensive to purchase and require high technical skills to operate. But rewards are available to those who persevere. At LB we can offer a fully outsourced service that can give you aspect recommendations depending on the type of activity you're running. If you'd like us to test your new warehouse design, come and do a review of your existing setup, or provide seasonal support to deal with your business changes, we can support you.Solar power solutions for manufacturing plants


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Diệp Quân
Nguyen Manh Cuong is the author and founder of the vmwareplayerfree blog. With over 14 years of experience in Online Marketing, he now runs a number of successful websites, and occasionally shares his experience & knowledge on this blog.
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