Efficient warehouse management is dependent of a ton of factors, ranging from external, extrinsic, global, national factors to internal factors.
Each one has an impact on the running of a warehouse. This has led to the development of the warehouse optimisation industry.
It involves implementing processes that improve the efficiency and profitability of warehouse operations. These include physical utilisation of space, doors, picking locations etc. It’s also applied to operations to optimise crossdocking, putaway, picking, slotting etc. One process that is grossly under-utilised in the UK is slotting.
Slotting is be defined as the process of organising items in the distribution centre for accurate order picking purposes. Many warehouse managers confuse slotting with Inventory control, but they are two different aspects. Slotting makes you actually think through and plan the placement of goods in order to improve on productivity; whilst inventory control is about receiving the goods that come into the warehouse.
In warehouses across the UK, some of the benefits of slotting include:
1. Assigning of products to appropriate storage media,
2. Storage of products is in line with prompt delivery to customers,
3. Minimisation of product losses due to occurrence of damage,
4. Maximisation of labour productivity.
With these benefits, (slotting can reduce employee’s warehouse travel time by up to 35% alone), why are more warehouses not implementing it?
Some argue that the potentially confusing task of making the slotting decisions for hundreds or thousands of products in a distribution centre may just stump some managers. Add that to the task of deciding which products are stored in which modes, which ones are stored or ordered together etc. When you can save and shave of costs in multiple places in your operation, it adds up to significant savings and a healthier profit margin.
Types of Slotting
Ideal slotting patterns can be determined by examining existing sales data to determine which products are fast movers and should be placed ‘closer to the front’ of the warehouse. Slotting can also come in handy when you are restocking the warehouse.
Generally, slotting is classified as Fixed Slotting where items are assigned to fixed locations for picking. This is used for products that are frequently ordered together, dispatched together etc. The other form is Dynamic or Random Slotting. Here, there are no fixed slots and it addresses the the need to keep up with constantly changing inventory.
Other slotting considerations include the weight of the goods being stored, characteristics that require some slots more acceptable than others, if the goods are hazardous in nature, require cold storage etc.
Should you use slotting?
In one word, YES. The real question here is how often should you implement it? Depending on the goods handled, distribution centres may slot yearly, monthly or even weekly. Regardless of the frequency chosen, start by analysing your sales data, picking data, even the pick path, and see how you can rearrange and save time on the steps. Implementing an incremental approach over time leads to improved efficiency of delivery and bottom line profits.
At Monarch Shelving Limited, we stock pallet racking systems that work for any style of slotting your warehouse. From high pallet racks to low shelving units, our products can help improve your distribution centre productivity. Call us today for a quote.
