What is Slotting Optimization

The process of assigning SKUs to forward pick locations. The assignment is often based on velocity – for example, putting full cases of fast-movers nearer to shipping areas, or placing fast moving piece pick SKUs in the chest-high “golden zones,” with slow-movers at the bottom-level that take longer to access. But there are many other potential considerations. For example, it may be better to assign some fast-moving SKUs to multiple locations in forward pick areas to minimize congestion. It may also be smart to slot items closer together that are frequently ordered together.

In case picking, some companies slot products from heaviest to lightest to minimize product damage. Some slotting processes can be very simple, but others require significant mathematics to optimize the result. Not all WMS solutions support advanced slotting applications, which can also offer cost-benefit analysis about the value of making slotting directives from the WMS.