The Benefits of Using Slotting Optimization Technology
Slotting optimization is the new trend defining warehouse management. While carrying inventory accounts for 7 percent of US gross domestic product (GDP), reports Lisa Harrington of Inbound Logistics, warehouse managers still struggle to leverage modern technology. But, slotting optimization technology revolutionizes standard warehouse management processes, and your organization needs to know how this technology can benefit your enterprise.
Slotting Optimization Technology Enables Benchmarking.
Warehouse managers cannot improve what they do not understand, and this includes improving space utilization. Modern technology enables self-assessment of operations and compares your operation against internal and external key performance indicators (KPIs). Through this process, also known as benchmarking, warehouses can continuously improve.
Technology-Based Slotting Facilitates Continuous Picking Strategies, Like Order Streaming.
Random slotting opens warehouses up to wasted space and greater carrying costs. Using technology to improve slotting also allows pickers to complete orders faster, which is a prerequisite to implementing better picking Strategies, like order streaming.
Automated Optimization Technologies Leverage Analytics and Real-Time Data.
Analytics and real-time data rely on automated data identification and capture (AIDC) technologies, like Bluetooth and sensors using the Internet of Things (IoT), and this information can be leveraged to improve space utilization. With more facilities turning to robotics to move heavier products and complete pick tickets faster, AIDC will grow more important, which feeds back into better slotting strategies.
Automated Systems Create Robust, Data-Based Replenishment Strategies.
Replenishment is still a top concern for warehouse managers, and the wrong replenishment strategy can have lasting consequences. Using technology to optimize slots creates a robust replenishment strategy by providing additional insight into product cycle times and overall inventory management.
Innovative Slotting Optimization Technology Curtails the Costs of Inventory Storage.
Knowing where everything belongs and putting everything in its assigned slots are essential to reducing inventory carrying costs. However, product demand changes daily, and an effective, efficient use of space must consider the dynamics of consumers’ demands. Thus, the costs of caring inventory decrease through an increased level of visibility.
Advanced Optimization Technologies Unify Disparate Supply Chain Systems.
Visibility reduces compliance violations and optimizes supply chain systems. Newer technologies induce collaboration throughout your supply chain systems and partners, critical to coordination between your facility and transportation network.
Technology Increases Customer Service.
Customer service tends to be the stepchild in warehouse management because facility managers are not directly in touch with consumers, but slotting optimization technology introduces an element of accountability through inventory tracking. This increases order accuracy; therefore, it also increases customer service levels in your company, explains Roberto Michel of Supply Chain 24/7. Besides, the latest technologies are essential to offering same-day or next-day delivery.
Optimized Slotting Technology Propagates Omnichannel Supply Chain Strategies.
E-commerce and omnichannel shopping strategies demand better, faster operations from their supply chains and warehouses. Fortunately, optimized slots through advanced systems and technology will meet surging demands of omnichannel shoppers.