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Product Slotting in the Distribution Center - A Guide to Warehouse Slotting

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The pick line is the heart of your distribution operation. Its design affects labor productivity and all functions of the warehouse. These best practices will help you establish a picking strategy, assign items to the proper locations and then set up the rules to keep your pick line humming.

Published in: Food

Product Slotting in the Distribution Center - A Guide to Warehouse Slotting

  1. 1. Product Slotting in the Distribution CenterDistribution Center Webinar Product Slotting & Methodology
  2. 2. Webinar Agenda Why Slotting is KeyWhy Slotting is Key Slotting MethodologySlotting MethodologySlotting MethodologySlotting Methodology Pitfalls & ComplicationsPitfalls & Complications 2April 2013
  3. 3. Product Slotting The most efficient placement of products The most efficient placement of productsplacement of products (SKUs) along a pick line placement of products (SKUs) along a pick line 3 Strike the perfect balance betweenStrike the perfect balance betweenStrike the perfect balance betweenStrike the perfect balance between picking and replenishment laborpicking and replenishment laborpicking and replenishment laborpicking and replenishment labor within your four wallswithin your four wallswithin your four wallswithin your four walls April 2013
  4. 4. Slotting & Warehouse Labor ReceivingReceiving 50% of Direct Labor50% of Direct Labor50% of Direct Labor50% of Direct Labor... ... Time traveling pick line is half of that 25% of Direct Labor25% of Direct Labor25% of Direct Labor25% of Direct Labor... ... Re-palletization efforts at receiving ... Pallet consolidation at shipping SlottingSlotting ShippingShipping Fork Labor Fork Labor PickingPicking April 2013 4 line is half of that ... Ergonomics ... Pallet building 25% of Direct Labor25% of Direct Labor25% of Direct Labor25% of Direct Labor... ... # of putaway tasks ... # replenishment tasks ... Pallet vs. Case replenishment
  5. 5. Slotting & Warehouse Labor 25% - 50% of SKUs in a 25% - 50% of SKUs in a Bad slotting imposes a 5 to Bad slotting imposes a 5 to April 2013 5 SKUs in a foodservice warehouse are in the wrong slot SKUs in a foodservice warehouse are in the wrong slot imposes a 5 to 15% penalty on direct labor productivity imposes a 5 to 15% penalty on direct labor productivity
  6. 6. Slotting Methodology Data Collection & Validation Data Collection & Validation Preslot AnalysisPreslot Analysis Operating Factors – Shift of operation & Process Flow Order Profiles & Family Grouping & Sequencing Family Grouping & Sequencing Rack Profiles & Slot Creation Rack Profiles & Slot Creation Slot AssignmentsSlot Assignments 6 Order Profiles & Routing Profiles Inbound – lumping, putaway and replenishment IT support (WMS) April 2013
  7. 7. Data Collection Layout (AutoCAD)Layout (AutoCAD) Item Master FileItem Master File • Item Number & Description • Temperature Zone • Customer (for customer specific SKUs) • Case Weight • Case Dimensions (Length/Width/Height) • Pallet Ti x Hi• Pallet Ti x Hi • Packaging Type (e.g., glass, bag, etc.) Inventory Snap-Shots (6 to 52 weeks)Inventory Snap-Shots (6 to 52 weeks) • Item Number • Quantity on Hand • Snapshot Date Order File (6 to 52 weeks)Order File (6 to 52 weeks) • Customer Number • Item Number • Quantity Ordered / Shipped • Ship Date • Route Number & Stop Number 7 Ideal data April 2013
  8. 8. Preslot Analysis Algorithm that determines the optimal slot size for each itemAlgorithm that determines the optimal slot size for each item • Based on the item’s shipping profile and physical characteristics Define a number of slot typesDefine a number of slot typesDefine a number of slot typesDefine a number of slot types • Bulk Slots • Double / Triple Deep • 1 Level Selection • 2 Level Selection • Case Flow Rack / Handstack / Shelving Balance Minimum Pick Travel against Excessive ReplenishmentBalance Minimum Pick Travel against Excessive Replenishment 8April 2013
  9. 9. Family Grouping & Sequencing Grouping • Items with similar properties are grouped together into slotting families Sequencing • Sequence families to build up pick line • Sequenced based on 9April 2013 slotting families • Grouping primarily based on: • Crushability / stackability (e.g., cans & glass / bags) • Customer-specifics (e.g., Chains) • Food safety (e.g., chemicals) • Sequenced based on building outbound pallets that: • Limit / Eliminate product damage • Require no re-palletizing for stability • Driver and Customer Friendly
  10. 10. Example of Family Sequence Layout & Numbering 10April 2013
  11. 11. Rack Profiles & Slot Creation RackRackRackRack ProfileProfileProfileProfile Family 1Family 1Family 1Family 1 Family 2Family 2Family 2Family 2 A 5 4 B 6 12 C 2 8 D 0 4 Each family assigned to a set of racks on the pick line Each family assigned to a set of racks on the pick line D 0 4 Total 13 28 Within the family, racks are profiled to provide the necessary slots for the SKUs in that family Within the family, racks are profiled to provide the necessary slots for the SKUs in that family All pick and reserve slots are created, based on the numbering system All pick and reserve slots are created, based on the numbering system 11 The slot file can be uploaded the WMS. It will contain every pick and reserve location within the DC. LIDD provides a layout with each rack’s designated profile for the rack installers. April 2013
  12. 12. Slot Assignments Assign each SKU to its proper slot type within its family Assign each SKU to its proper slot type within its family ConsiderationsConsiderations LIDD produces a file of the slot assignments for each SKU that can be uploadedConsiderationsConsiderations • Case Height Sequencing • Minimize Cross-Aisle Travel • Ergonomics (Max. Weight on 2nd Beam) • “Like-Product” segregation • Glass • Sprinklers / Insurance Requirements 12 can be uploaded into your WMS April 2013
  13. 13. Pitfalls & Complications ItemItem velocity • Inventory levels of perishables (risk of oversized pick line) • Handling of slow-movers • Picking technology (RF scanning vs. voice/check-digit) I.T. • Picking technology (RF scanning vs. voice/check-digit) • Capabilities of WMS (numbering & pick slot sequencing) Growth • Understanding implications of volume vs. variety growth April 2013 13
  14. 14. Thank You We would be happy to answer any questions We would be happy to answer any questions contact@lidd.ca (514) 933-8777 contact@lidd.ca (514) 933-8777 14April 2013

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