Tuesday, November 25, 2008

Warehouse Slotting

A warehouse manager must keep track of not only how much inventory passes through the warehouse for retailers but also the placement of that inventory to maintain an efficient operation. This includes monitoring the location the items are placed within the warehouse, time it takes for the merchandise to be picked, assembled, and packed as well as the height of the inventory on the shelves.


There is an abundance of forethought that must go into determining placement of the incoming product to avoid waste. If you have a high volume fulfillment facility, you will need to maximize storage space, oversee shipping errors, and productivity. The best approach is to conduct a slotting analysis.


What is slotting?

In the most basic sense, it is the optimization of materials handling by strategic placement of inventory. The benefits include:

  • Increased picking and packing productivity by reducing travel time for the workers
  • Reducing labor required to replenish inventory by maximizing space. i.e. pre-selected space for specific palletized items
  • Reducing labor required to pick and pack by streamlining processes
  • Improving material flow by reducing response time to batch items
  • Shelving items according to weight so that heavy items are on the bottom and lighter on top thus reducing injuries
  • Increasing accuracy by separating similar items

What has been mentioned is only a fraction of the benefits of slotting inventory appropriately. By the use of software planning tools via a warehouse management system, you will increase space, reduce shipping errors, and increasing productivity

Sources:
CEI Logistics
Manhattan Associates

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