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.

1. Product Slotting in the
Distribution CenterDistribution Center
Webinar
Product Slotting & Methodology

2. Webinar Agenda
Why Slotting is KeyWhy Slotting is Key
Slotting MethodologySlotting MethodologySlotting MethodologySlotting Methodology
Pitfalls & ComplicationsPitfalls & Complications
2April 2013

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. 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. 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. 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. 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. 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. 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. Example of Family Sequence
Layout & Numbering
10April 2013

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. 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. 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. 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