Best Practices in Slotting - Smart Best Practices in Slotting Author: Kevin Collins Subject: Best...

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Transcript of Best Practices in Slotting - Smart Best Practices in Slotting Author: Kevin Collins Subject: Best...

  • Copyright 2014 DiCentral. All rights reserved.

    Kevin Collins, Director Product Marketing, SmartTurn

    Best Practices Slotting

    Affordable Enterprise-Class Inventory and Warehouse Management Software

    Smart Anytime

    Simple Anybody

    Safe Any Warehouse

    Real-TimeLow TCOFast TTV

    Intuitive Best Practice

    Unlimited Users

    Secure Reliable

    No Risk Subscription Model

    http://www.smartturn.com

  • Copyright 2014 DiCentral. All rights reserved.

    Best Practices IntroSlotting

    Agenda

    SmartTurn Background

    Product DemoQ & A

    http://www.smartturn.com

  • Copyright 2014 DiCentral. All rights reserved.

    Company Background

    Software-as-a-ServiceJim Burleigh, CEO(ex VP Products & Marketing of Salesforce.com, Remedy, Oracle)

    Technology ExcellenceMiguel Pinilla, CTO(ex VP Engineering, Informative, Navis LLC., Stanford PhD)

    Sales ExecutionMike Pyle, Sales VP (Citrix, Stanford AB, 8-YR SaaS)

    MarketingJim Bell, Marketing VP (ex VP Electric Cloud, Actuate Corp., Kellogg MBA)

    Chairman of the BoardJohn Dillon, Chairman(original CEO of Salesforce.com, Navis, Hyperion)

    Founded in 2004 as a division of Navis, (acquired by Zebra: Nasdaq ZBRA)

    Spun off December 2007 Quality investors: NEA and Emergence CapitalSeasoned executive team Deep engineering talentStrong supply chain domain knowledgeLeader in Software as a Service WMSHeadquartered in San Francisco, CA

    SmartTurn Inc. Domain Experience

    http://www.smartturn.com

  • Copyright 2014 DiCentral. All rights reserved.

    What is a Best Practice Series?

    Tools Leading SaaS Application, Webinars, eBook, Blog

    Pain Points Tips, Recommendations, Guidance

    Experience Seasoned, Professional SmartTurn Team

    Leadership Trusted Advisor, Facilitator

    Preparation Help You to Engage, Plan and Execute

    Access SmartTurn Forum, Community Sharing, Test Drive

    A series of Best Practices for Inventory ManagementSolutions (IMS) & Warehouse Management Software (WMS)

    http://www.smartturn.com

  • Copyright 2014 DiCentral. All rights reserved.

    Slotting for Efficient Warehouse Operations

    Slotting BenefitsSlotting TechniquesSlotting StrategiesCustomer ExamplesDeveloping Your Own Slotting Strategy

    What You Will Learn From This Series

    http://www.smartturn.com

  • Copyright 2014 DiCentral. All rights reserved.

    Reduces DamageHeavy item placementFragile/glass/sensitive itemplacement

    Optimizes SpaceCube UtilizationFewer Pallets

    The Benefits of Slotting

    Improve EfficienciesReduce extra handling with fewer touchesIncrease inventory turnsIncrease Putaway Performance

    Fewer on-off fork activitiesIncreased efficienciesFull pallets, cases, masters, etccan now fit

    Increase Replenishment PerformanceStocker doesnt need to guesswhether product/pallet will fit

    Increase Picker PerformanceOptimize pallet building, packingReduce travel timeReduce injuryReduce hourly labor

    http://www.smartturn.com

  • Copyright 2014 DiCentral. All rights reserved.

    Slotting Techniques

    Slotting 101 BasicsWhere do you Slot Each Item? Fixed Method (Least Efficient)

    Find the first empty slot Slot without Analyzing:

    Workflow Labor

    Spreadsheet/Database (Better)- Help you Sort Dig through Data

    Manual Software (Best) - Slot by Physical Characteristic,

    Unit of Measure, Weekly Velocity

    You Control/Monitor/Approve Optimize Picking/Putaway

    31% - Efficient Slotting Plan Minimizes Picking Travel Times

    51% - Using Software / Database to help Slotting Plans.

    Majority Do not use Forecast Data to Support Slotting Plans.

    Supply Chain Consortium March 2007 Survey

    http://www.supplychainconsortium.com/resource_center.asphttp://www.smartturn.com

  • Copyright 2014 DiCentral. All rights reserved.

    Slotting Strategies

    Strategies Slot by Velocity

    Fast Movers closest to dock area or slotted in front of Aisle or Pick/Pack area Slot by Fit

    Weight, Cube, Height, Commodity, Vendor Balancing Slots

    1. Leave room for emergency items (2% - 5%) per zone, aisle or group

    2. Keep rack height consistent to avoid confusion

    3. Separate items based on a category bags, cans, glass, chemicals, liquid, etc.

    4. Use standard naming convention

    5. Slot and re-slot when needed - dont wait until its too late

    6. Slot when no activity is taking place

    7. Keep your aisles and zones balanced

    http://www.smartturn.com

  • Copyright 2014 DiCentral. All rights reserved.

    Customer ExamplesSlot Naming

    Warehouse, Zone, Aisle, Bin, Position, Level

    Example #1 (Best):Zone: 1Aisle: ALocation/Bin: 0Position/Level: 01Level/Position: A

    1A-001-A

    Example #2 (Good):Aisle: 1Location: 15Level: 04

    11504

    Example #3 (Poor):Zone/Aisle/Location/Bin: BINPosition/Level: 05

    BIN05

    You can also swap numbers with alphabet characters or vice versa

    http://www.smartturn.com

  • Copyright 2014 DiCentral. All rights reserved.

    Developing Your Own Strategy

    Prioritize, Evaluate, Implement Consult with Professionals

    SmartTurn Customer ExperienceManagersTechnology/Integration Companys

    o CMAC, Ryzex, MSA SystemsInvest in Technology

    WMS application that supports any slotnaming conventionWMS app that allows picking polices byslot identifier

    Know your ProductsKnow your product velocityReview trends and forecastsSeasonal, advertising, market

    Analyze your LocationsKnow your warehouse layoutOptimal picking pathRack typesCongested areas

    Create A Slotting Plan

    Useful TipsEfficient Slotting requires monitoring,changes, reorganization and tweakingHistorical trends or forecasted demand willrequire item slot changesWatch for huge spikes in demand that will lastfor an inventory turnPrepare for advertising, marketing,seasonality, sales forceIdentify slow movers, remove them fromprime locations move them before peakSlot & re-slot before the holidays

    Resize locations when needed items should always fit in thelocationAsk for feedback from pickers,operations staff, receivers

    http://www.smartturn.com

  • Copyright 2014 DiCentral. All rights reserved.

    Product DemoFor a FREE test Drive visit: SmartTurn Test Drive

    Affordable Enterprise-Class Inventory and Warehouse Management Software

    SmartAnytime

    SimpleAnybody

    Safe Any Warehouse

    Real-timeLow TCOFast TTV

    IntuitiveBest practice

    Unlimited Users

    SecureReliable

    No risk subscription model

    http://smartturn.com/form/form-testdrive-www.jsphttp://www.smartturn.com

  • Copyright 2014 DiCentral. All rights reserved.

    Recap: Benefits of SlottingImmediate & Long Term Benefits of Slotting

    1. Increase Efficiencies Minimize picker travel time Minimize breakdown on dock Reduce product handling - fewer touches. Increase Key Performance Indicators KPIs

    Inventory turns, picks per hour, cycle times

    2. Reduce Damages Correctly slotted items will fit in the location, build better pallets.

    3. Optimization Space utilization, fewer pallets/boards Reduces labor

    4. Improved Worker & Health Safety Heavy item placement, less bending (Reduce worker compensation claims and premiums)

    http://www.smartturn.com

  • Copyright 2014 DiCentral. All rights reserved.

    SaaS WMS vs. Traditional Licensed WMS

    http://www.smartturn.com

  • Copyright 2014 DiCentral. All rights reserved.

    SmartTurn Customers and Industry Pundits

    on SmartTurn

    on SmartTurn

    SmartTurn will shake up the WMS Industry.Enterprise-class functionalityLowest TCOPerfect for small, medium business

    Steve Banker, ARC Analyst

    Prior to SmartTurn we lost a lot of tradediscounts with our old system.in the orderof $40,000 a month!

    - Carlos Rubio, Director of Finance for Grayling Industries

    SmartTurn has been a true pioneerin this space..users of on-demandwarehouse applications are twice as likely to have the ability to quickly change ormodify business processes in theirsoftware

    Ian Hobkirk, Aberdeen Analyst

    http://www.aberdeen.com/default.asphttp://www.smartturn.com

  • Copyright 2014 DiCentral. All rights reserved.

    1 281-218-4892Question & Answer Session

    For a copy of the Q&A and this Presentation visit:SmartTurn Forums

    All questions and answers are posted anonymously to our forum at: www.smartturn.com/forums.

    http://www.smartturn.com/forums/inventory-warehouse-management-best-practices-discussion/http://www.smartturn.comhttp://www.smartturn.com/forums/inventory-warehouse-management-best-practices-discussion/http://www.smartturn.com/about/contact_us.jsp

  • Copyright 2014 DiCentral. All rights reserved.

    1 281-218-4892

    Thank you!www.smartturn.com

    http://www.smartturn.comhttp://www.smartturn.com/about/contact_us.jsp

    Best Practices - SlottingAgendaCompany BackgroundWhat is a Best Practice Series?Slotting for Efficient Warehouse OperationsThe Benefits of SlottingSlotting TechniquesSlotting StrategiesCustomer ExamplesDeveloping Your Own StrategyProduct DemoRecap: Benefits of SlottingSaaS WMS vs. Traditional Licensed WMSSmartTurn Customers and Industry Pundits Q&A SessionContact Us