Believe it or not, item slotting has an influence on virtually every direct labor function on your warehouse floor.
...and yet the importance of consistent slot maintenance - or even routine evaluation - is often underestimated, even when common symptoms of sub-optimal slotting are present.
Low seletion productivity / increase in selection cost
Order selection is responsible for over 50% of your direct labor costs. Travel is a big component of it and a good portion of it is often unnecessary.
Product damage during selection, transportation & delivery
Stacking products out of the proper sequence during selection can cause unstable pallets, product damage and/or rework at the dock.
Low forklift productivity / increase in forklift cost
Not having enough product available for picking requires excess pallet letdowns and forklift travel, especially if reserve inventory is located far from the item’s pick slot.
Staging areas & aisles blocked by pallets
Poor capacity utilization can cause a perceived lack of capacity. This can result in disorganized and cluttered staging areas, slowing the put-away process and potentially affecting product availability.
High breakdown costs during receiving
Inadequate pallet configurations and sub-optimal pallet heights can cause excess breakdown on the dock, requiring additional labor.
Slow receiving process / low turn of inbound staging areas
Slot types not being consistent with inbound quantities and frequency and can cause a bottleneck on the dock, slowing the put-away process.
Increase in selection shorts
A selection “short” occurs when there is not enough product available for picking. This results in excess forklift labor, delayed order fulfillment and, if the product is not available in reserve, unfulfilled orders.
Low availability of open slots for new items
The inability to consistently evaluate pick slot utilization can result in poor utilization of prime storage areas and even a perceived lack of pick slot capacity.
Inability to manage an effective velocity-based slotting zone
Whether you are managing an automated pick-module, ASRS, or just a high-velocity pick zone, underutilization or mismanagement of these areas can result in disorganization, low productivity levels and, ultimately, wasted investment dollars.
Inability to properly handle item seasonal & promotional items
Seasonal peaks and lulls, SKU proliferation and handling promotional items can not only wreak havoc on facility capacity but can negatively impact labor productivity in a big way if not forecasted and managed properly.