Slotting 101

By Bob Trebilcock, Editor at Large -- Modern Materials Handling, 1/17/2006

Vegas isn’t the only place where playing the slots can pay off big.

Slotting optimization tools can also produce big returns in the warehouse and distribution center. And it’s not a gamble.

In fact, slotting can help take a distribution center that is already running a robust warehouse management system (WMS) to the next level of operational efficiency, says Jeff Hutchinson, a partner with Accenture (312-737-8842).

“Slotting is not something you have to do to get product out the door,” says Hutchinson. “Instead, it’s one of those tools like task interleaving that can help you further enhance your operations.”

Almost every modern WMS, including the products offered by major ERP players, has some slotting capabilities. But at a base level, slotting functionality is limited to figuring the best way to put away inventory based on the available space in a facility.

Slotting optimization takes that to the next level. These solutions still take the size and weight of a product into consideration. But they also can factor in other criteria, like historical or forecasted demand for a product, seasonality or changes in demand. A slotting optimization product can also integrate with other applications, like labor management, to create new efficiencies.

“Basic slotting is concerned with space utilization,” Hutchinson explains. “Slotting optimization looks at how to putaway product to balance out a work load, build better shipments or improve the accuracy of picking.”

While any facility can implement slotting, Hutchinson says the ideal candidate is a larger facility, like a regional distribution center, especially if that facility deals with seasonal products or multiple types of picking.

“Any facility that needs to better manage resources, get fast-moving products out of the door, has some seasonality, or has a limited number of pick faces can benefit from slotting,” says Hutchinson.