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Operations Best Practices
Benefits of Inventory Slotting
The purpose of profiling (slotting) the inventory is more than just making sure that heavy items are not located in the back of the warehouse or on the highest shelf, but to evaluate the size, storage media, mix and velocity of product being stored in the facility.
Sizing
Profiling will evaluate product size, weight, cube, storage media, pick media, case picks, piece picks and pick frequency. Obtaining the accurate cube and weight of each product is critical. Many companies do not maintain an accurate data base that includes dimensional information and product weight.
The best solution is to collect data electronically using a CubiScan manufactured by Quantronix based in Utah. This device accurately collects cubic data and weight of each item. An easy to use software package is included to speed up the process of capturing and recording cubic data and weight.
Storage
Now that the cube and weight of the product has been acquired, you need to determine the storage media. This discussion is based on the more common storage media found in a typical operation, such as shelving, pallet racking, decked rack and pallet and carton flow modules.
When selecting storage media and types of product to be stored within, there are simple rules that apply. When utilizing shelving with your facility, locate fast movers closer to the main aisle or conveyor systems and slower items further away or on second levels of mezzanines. Pallet flow is utilized for high cube fast movers of case pick quantities. Carton flow modules are well used for fast to medium inner pack picks or each picks from cartons. For medium movers of high cube product, decked racking is a good candidate.
Velocity
By looking at the inventory over a 3-month 6-month, or even better a 12-month period of time, develop the inventory movement analysis. If your business has a large seasonal impact, it is recommended you evaluate the inventory based on those seasonal times of change in inventory.
When this analysis has been completed, determine the amount of inventory that is to be dedicated to each of the storage media types located within the facility. This can be broken down further based on the family groupings of the inventory. Knowing the total pieces moved in a 3, 6 or 12-month period of time, convert total pieces to total daily piece movement.
Product Mix
Your operation may require keeping like family groups together, allowing for ease of picking for those items that are often sold together. Some items may need to be grouped in a particular storage area because of a kitting operation.
There are many combinations of solutions for product mix and storage rules. Many times working along side a picker for the day provides insight into how product is moved through the facility. Understand the order filling requirements of the product to reduce problems of incorrect product mixing.
Completing the Task
With the daily piece movement completed, convert the movement to the number of inner pack and pallet quantities moved in a day. This will help identify the number of storage locations required. Determine the percentage of inventory to allocate to each of the storage media types. To gain efficiency from slotting the inventory, decide on the number of days of product to be held in a pick location. This will help minimize the amount of replenishments that will be required on a day-to-day process.
Once you have established the cube of the inventory, you can determine the amount of space the inventory will occupy within the storage media.
In Conclusion
Slotting will increase productivity, order accuracy and customer service. Profiling your inventory should be given top priority. Profiling your inventory should not be considered a one-time process, but an ongoing inventory control operation. Make sure that all of your project team members understand the need to properly profile your inventory and the rules to follow.
The preceding was a synopsis of a discussion was with Steve Trommer, Vice President at Trommer and Associates, a facility planning company located in Akron, OH.
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