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10 Advantages of Slotting Optimization in Warehouses

As the number of products being sold has increased, the demand for superior warehouse control has grown. For your company, this means you need to make sure every space in your warehouse is maximized for efficiency and optimization. In fact, slotting optimization in warehouses can lead to the following benefits for your company.

1. Increased Picking Productivity With Slotting Optimization

When pickers have better understanding of where every product is, they can pick more orders faster. In addition, items should not be slotted randomly.

2. Better Understanding of Demand Correlation

The idea of increasing picking productivity goes back to the use of slotting optimization through demand correlation, explains Dr. Edward H. Frazelle in this short video.

Slotting Optimization at LL Bean from Edward H. Frazelle, Ph.D. on Vimeo.

By putting items that are commonly ordered at the same time together in a warehouse, your team can complete picks faster.

3. Greater Pick Accuracy

An unoptimized warehouse can lead to errors during picking, packaging, and shipping. Slotting optimization promotes greater accuracy and better customer service, building your brand and reputation.4. Better Inventory Control and Replenishment.

4. Better Inventory Control and Replenishment

Customer service hinges on the ability to fulfill orders when customers start shopping. In other words, you need to have the right products, at the right time and at the right price. Slotting optimization gives you better inventory control, which enhances replenishment and keeps customers happy.

5. Balanced Workloads for Team Members

Slotting optimization goes further by reducing inconsistencies in assigning work to your team members. As a result, employee satisfaction increases, and overall delays and costs during picking decrease.

6. Fewer Handling Costs

The time between receiving an order and picking it determines its handling cost. An optimized warehouse gives employees greater access to items that are more likely to be ordered than others. Essentially, this means handling costs decrease too.

7. Reduced Bottlenecking

During peak hours, bottlenecks can appear impossible. However, a well-thought slotting system can effectively reduce bottlenecks by allowing employees to rapidly scale up or down current picking speed to meet increased demand and reduce bottlenecks.

8. Efficient Seasonal Shifts

Changes in the seasons can mean entire changes in your warehouse’s inventory. An inefficient warehouse may experience extreme delays during seasonal shifts, but an optimized slotting system ensures the right products are available and ready for return to the distributor or vendor at the end of each season. Consequently, your team can shift products without delays or confusion.

9. Faster Lead Times

Regardless of the current season, your team needs faster lead times to keep the flow of products going. In warehouses, faster lead times can give you access to early-bird or other discounted rates among carriers, decreasing overall costs to customers.

10. An Ergonomic-Driven Picking Process

An optimized warehouse also helps reduce the risk of injury and improves ergonomics among employees. This could lead to lower health insurance and employer liability costs, depending on your insurer.

What’s Next?

As new technology evolves, slotting optimization in warehouses will grow easier. You owe it to yourself, your team and your customers to make sure your warehouse utilizes slotting optimization. If you are still unsure about it, just think about how these benefits could boost your profit margins.