Support > Frequently Asked Questions

1. What is slotting?
2. Does my warehouse need a slotting system?
3. Is there a minimum warehouse size or number of SKUs for considering a slotting package?
4. Is there a quick way to determine a slotting project’s ROI?
5. What is the cost justification for installing the slotting package?
6. How long does it take and what is the level of effort to complete a slotting project?
7. What is the difference between SlotLE and Slot3D?
8. Can SlotLE and Slot3D run over the network?
9. Can I use SlotLE and Slot3D to determine capacity?
10. Will SlotLE and Slot3D work with my existing Warehouse Management System?

If you are ready to start saving money through warehouse slotting today,
please contact for a Free Quote or give us a call at 502-657-2600.

1. What is slotting?

Slotting is the process of determining the most cost effective and ergonomically correct plan for storing inventory. Key considerations in finding an optimal slotting plan include understanding things like the dimensions and weight of the products you are storing, the storage technologies, labor costs, space costs, and how often and what quantities products are being picked/replenished.

2. Does my warehouse need a slotting system?

The extent of the slotting system required depends on the complexity of the operation and number of items handled. To clarify, just because your warehouse may be small and have a few items does not mean you should ignore proper slotting. It only means that the justification for a computer-based system is not as obvious. We believe that every warehouse can benefit from some form of ongoing slot maintenance program in place.

3. Is there a minimum warehouse size or number of SKUs for considering a slotting package?

The short answer is ... it depends. Slotting within a warehouse is the outcome of an analysis of the storage and material handling requirements of the items to be stored in the warehouse. This analysis, which is typically done when designing a new building (green field layout) or re-racking an existing building, is usually performed by trained industrial engineers.

The analysis, which consists of a series of calculations and trade-offs, yields a physical rack and material handling layout. The final step in the process is the assignment of individual SKUs to storage locations. This produces the optimal layout based on the data and operational constraints provided.

4. Is there a quick way to determine a slotting project’s ROI?

For a high-level ROI determination, consider the following components that tend to bring a significant ROI and cost justification:

• Deferred Capital Expenditures
  One of the primary reasons for a warehouse “running out of space” is under-utilization of the existing building cube. This may be because the full building height has not been utilized, the rack locations are over sized, or that items are in the wrong locations. A re-slotting project can extend the lifespan of an existing facility and defer the need to build additional space.
• Cost of Back Injuries
  According to the Bureau of Labor Statistics, more than one million workers suffer from neck injuries each year, and back injuries account for one in every five workplace injuries. Furthermore, one-fourth of all compensation indemnity claims involve back injuries, costing industry billions of dollars. Back injuries are caused by improper lifting-stooping, twisting and reaching. Heavy and bulky loads place extra stress on the worker’s back, increasing the probability of injury. Correct slotting can help reduce the likelihood of back injuries.
• ABC Slotting Reduces Travel Time
  The concept of ABC slotting is simple: slot the fastest moving items closest to the shipping dock to reduce selection travel time. Some operations with a layout based on product demand (specifically those that do not ship to a retail outlet where family grouping is required) can greatly reduce the travel time required to select goods and replenish the pick line.
  Item (SKU) selection activity typically accounts for roughly 50% of direct labor hours. The amount of time spent supporting the selection activity, such as replenishment, may constitute an additional 10% of direct labor. Of these hours, travel time may consume 60% or more. Consequently, if you can reduce travel time, you can increase productivity, thereby capturing cost savings and ROI.
• Product Sequencing to Reduce Damage
  The sequencing of products in the pick line is critical to minimize selection and in-transit damage. Heavy or sturdy products, like cans, should be selected prior to light crushable products, like cookies. And toxic or hazardous products require special handling. By sequencing the pick line in a logical manner, product damage can be drastically reduced.
• Reduction in Short-Picks
  Short-picks occur when there is inaccurate inventory information-when the picker gets to the primary pick slot there is not enough inventory to complete the pick. This can be caused by several factors, all related to not having the item in the right size location. Short-picks typically occur when replenishment is unable to stay ahead of the pick demand. The key to correcting this problem is to maintain the item in a location large enough that pick demand will not outstrip replenishment’s ability to refill the location on a timely basis.

5. What is the cost justification for installing the slotting package?

Once you have determined that your facility is a candidate for a slotting package, the next question is typically “what is the cost justification for installing the system?” The typical justification points are as follows:

• Bricks and Mortar – the cost of a building expansion.
• Industrial Accidents – medical costs, wages, and lost productivity from bodily injuries.
• Operational Productivity – increased efficiency due to optimal product placement and reduced travel time.
• Product Damage – reduced “charge backs” due to in-transit damage.
• Short Picks – reduced short picks due to inventory being unavailable.

Frequently, a client will respond to these cost justification points with “Why would I need to buy a slotting package when I can hire a person to maintain my warehouse slotting?” You can hire a person to manually maintain your warehouse slotting the same way you can hire a team to manually track inventory and perform the same functions as a WMS; but would it be as efficient? A slotting system is configured with the design rules and operational constraints applicable to each facility.

Slot maintenance consists of constantly comparing the current layout to the optimal configuration, making recommendations to bring the current configuration closer to the optimal layout. In the complex environments described above, manually achieving the same level of continuous slotting maintenance would not be possible.

6. How long does it take and what is the level of effort to complete a slotting project?

This question is similar to asking how long it takes to build a house; it depends on the size of the house. For a slotting project, it depends on how big the building is, how many SKUs there are, and the complexity of the operation.

A slotting project is broken into a number of parts. The following parts and timeframes are guidelines. Depending on the complexity and size of your project, your specific timeframes may vary.

• Slotting System Installation: 1 to 3 weeks
  If a slotting system is purchased, the system will need to be installed and configured. Additional configuration takes place during the data gathering phase and training on the system may be done during this phase or be deferred until post-implementation.
• Data Gathering: 2 to 6 weeks
  In the data gathering phase, interviews are conducted with operations to determine the goal of the project and the operational constraints. Item data is extracted from the host and loaded into a slotting tool.
• Data Analysis: 4 to 12 weeks
  In this phase, the data gathered is analyzed and the results presented to operations. A high-level slotting plan is developed based on the trade-offs made due to operational constraints.
• Implementation: 6 to 20 weeks
  During the implementation phase, the final slotting plan is developed. Any rack changes required are detailed, racks are ordered and installed, and product re-slotting is performed.
• Maintenance: 1 to 2 weeks
  During this phase, maintenance of the slotting system - whether manual or computer-based – is turned over to the client. Training on the system may occur during this phase, and manual processes and procedures are also developed.

7. What is the difference between SlotLE and Slot3D?

The primary difference between the two products is in the facility manager. SlotLE™ has a 2D plan view drawing capability to represent specific storage systems. Slot3D™ incorporates a fully functional and Autodesk OEM certified version of AutoCAD embedded in the graphical interface. This capability allows for a vivid 3D representation of not only the storage systems in a layout but also color coded slotting results down to the shelf level. The drawings and scenario’s can be saved in industry standard .dwg format. Both SlotLE™ and Slot3D™ have the same powerful economic based algorithms engine that is now in its 6th release.

8. Can SlotLE and Slot3D run over the network?

Yes. Both SlotLE™ and Slot3D™ have network license models available that allows multiple and concurrent users (depending on the number of licenses) to use and collaborate with the product. Standalone desktop licenses are also available.

9. Can I use SlotLE and Slot3D to determine capacity?

Yes. SlotLE™ and Slot3D™ both have a scenario manager that allows you to compare alternative slotting plans. Each plan presents key slotting results in terms of plain English and easy to understand dollars and cents. The program also provides detailed space utilization insight with each scenario and given set of constraints that you can easily save and compare to determine the best strategy for the operation.

10. Will SlotLE and Slot3D work with my existing Warehouse Management System?

Yes, even if your WMS is proprietary. SlotLE™ and Slot3D™ provide an open database SQL architecture that allows you to easily map data fields. In fact, an Excel spreadsheet is provided with the package that contains the import data structure.