WERC surveys estimate of less than 15 percent of the items in a typical warehouse are slotted correctly and only 31% of warehouses that are surveyed think they have efficient slotting. Subsequently, most warehouses are spending 10% to 30% more per year than they should because the warehouse is not properly slotted.
The advantages of proper product slotting are: Reduced picking labor requirements by locating product in the optimal pick sequence and reducing travel paths. Reduced replenishment labor requirements by matching product unit loads to the appropriate size storage slot for forecasted or historical demand. Reduced response time and improved flow by balancing workload among operators. Increased picking accuracy by separating similar products to avoid proximity picking errors. Reduced possibility of injuries by placing product in its ergonomically best location. Reduced product damage by organizing heavier product first in the pick path, ahead of crushable product. Delay capital expansion by continuing to have the optimum warehouse layout and cube utilization, reducing the need for the building expansion. Increased store level productivity by organizing product in family groups, eliminating or reducing sorting of product for restocking at the store level (this could reduce warehouse productivity).
How often the warehouse needs to be reslotted depends on seasonality, new product introduction and product life cycle. New warehouse startups it is vital to have products slotted properly for the beginning.
Radix Consulting Alliance utilizes Slot 3DTM and proprietary methods for slotting. Note: We are not a reseller of Slot 3D to keep ourselves unbiased.