7 Benefits of Warehouse Slotting Optimization

Posted on November 16, 2020

warehouse slottingIs your warehouse a mess? Well, we have the perfect solution for you: try warehouse slotting optimization. Warehouse slotting maximizes available space through a more efficient storage process while trying to reduce costs at the same time.

There are many benefits to this operation. In fact, for your convenience, we’ve listed the best advantages to this process in order for you to see if this would be a good fit for your company.

Now, are you ready to dive in? Here’s an insider look at the benefits of warehouse slotting:

1. Excellent Pick Accuracy

Errors can frequently occur in an unoptimized warehouse. For example, packages may contain the wrong label, shipping address, or even be billed to the wrong card. Now, no warehouse wants that!

For the best customer service, have an optimized warehouse where picking, packing, and shipping is all error-free and can be picked with the utmost accuracy. That way, customers can experience a speedy shipment time. Rather than have to wait for days for their package to arrive.

2. Reduced Handling Costs

When an order is received, the time it takes for an employee to pick the order determines the handling costs. With an optimized warehouse, employees are given considerable access to the items that are likely to be ordered. For example, a company’s most popular items are likely to be front and center.

That way, employees don’t have to go to the end warehouse to find an item. Instead, an employee can quickly pick up the item and then move on to the next package, thus decreasing handling costs.

3.  Increased Lead Times

Despite the season, your employees need the increased lead times to maintain the flow of orders. That way, employees can continue to pick orders without any delay. In fact, lead times are important as they promote customer satisfaction and require employees to work efficiently to get the job done right.

Having an optimized warehouse allows employees to reduce handoffs and compress their work in order to complete the picking process. After all, employees don’t have to follow intense steps or jump through hoops to pick an item. Instead, they can pick an order, package it, and ship it for an easy and efficient process that leads to the customer having a speedy delivery.

4. Balanced Workloads For Employees

One of the consistent benefits of warehouse slotting is that it recognizes inconsistencies in the process. For example, when assigning work, you’ll be able to see who was off the week prior, who should work this week, and who is taking days the next week.

You can catalog the data and find the overlapping errors. For instance, if one person called in sick while two people are off, you can recognize the need to have more people on staff and therefore plan accordingly. As a result, employee satisfaction will rise, and overall costs and delays will decline.

5. Increased Inventory and Refill

To provide the best customer service, you must be able to fulfill all orders when a customer starts to shop. After all, 69% of customers believe it’s important to see new merchandise at a store. Thus, you need to have the right number of both new and old products in stock for the right price.

By using slotting optimization, it puts you in better control of your inventory. That way, you can see what you have and what you don’t.

Overall, it makes finding if you need to order additional shipment easy and efficient. In fact, due to slotting optimization, all consumers should be able to find what they need on the store floor, making them happy and satisfied customers.

6.  An Ergonomics Picking Process

Having an optimized warehouse decreases the risk of work-related injury and enhances workplace ergonomics. After all, since most people order the popular items or items on clearance, they’ll be stored in one location that is easy to pick.

Having orders that are easy to find and quick to pick makes employees less stressed and even less prone to injury. In fact, most employees will be happier with their jobs since they can complete their tasks quickly and efficiently.

7. Structured Seasonal Shifts

Seasonal changes can signify an entire change in your inventory. If you have an unoptimized warehouse, you may experience further delays and decreased costs during seasonal shifts. No warehouse wants to experience that!

But with a slotting warehouse, it guarantees the right items are available and prepared for the return to the vendor or distributor. That way, your inventory is always up to date, and teams can shift items without confusion about where or when they are supposed to be moved. It reduces delays and allows employees to move seasonal products with confidence.

Use Warehouse Slotting Optimization Today

Warehouse optimization is important as it helps organize your inventory and provide your employees with a more efficient way to pick, pack, and ship products. In fact, with this system, you can increase lead times, have more inventory and refills, as well as have reduced handling costs.

It’s a good way to grow your inventory, especially if your a small business or just starting out. By using warehouse optimization, you can ensure your employees are working efficiently to pick orders, pack them, and ship them to the right address to maintain a speedy delivery time. After all, the end goal is customer satisfaction!

Now, for more information about warehouse slotting optimization, contact us today. We look forward to helping you!