What is Warehouse Slotting & How it is Relevant for your eCommerce Business

 

Introduction

We live in the era of eCommerce, where eCommerce companies sell everything from pins and hair clips to air conditioners and washing machines. Customers only need to browse the catalog and hit the purchase button. The convenience of getting high-quality products without moving out of one's home has increased eCommerce business popularity. 

But is the soaring popularity of online purchases a blessing for eCommerce companies? Or does it lead to an ever-increasing product base with no space for keeping them well-stacked? The answer lies in warehouse slotting. 

The following sections answer every question you may ever ask about eCommerce warehouses and ecommerce warehouse slotting. You will also understand the relationship between inventory & warehouse and learn about the benefits of the process.   

What is Warehouse Slotting?

Warehouse slotting refers to the creative way of managing the available space inside an eCommerce warehouse. A warehouse is where sellable products are kept. 

An eCommerce warehouse has three main components - items, slots, and pallets. Items refer to the goods waiting to be delivered to customers on receiving an order. Slots refer to the shelf where the goods are stacked. And, pallets are frames designed specifically for storing the items for loading into trucks. Generally, pallets are transferred to trucks with a forklift, and the transport process kicks off.  

The inventory is stacked on slots in warehouse slotting as per their order of importance and size. So, everyday essentials and fast-moving consumer goods are kept at slots nearer the loading deck for faster loading and unloading. Such efficient planning improves the efficiency of inventory & warehouse and reduces time lag. 

Warehouse slotting is an expert affair since the planner has to keep in mind the unique characteristic feature of each item. They evaluate the delicate nature of each item before placing it in a slot. Moreover, each slot must be evenly balanced to safeguard the workers' lives.  

An efficient warehouse manager juggles between consumer needs and workers' feedback. Interacting with all stakeholders is crucial for minimizing traffic jams inside the warehouse. And, proper warehouse management is vital for achieving optimal efficiency, faster delivery, and improved customer satisfaction.  

Now that you know the meaning of warehouse slotting let us learn about the benefits of the process for eCommerce companies. 

The Top Benefits of Warehouse Slotting for eCommerce Businesses

Warehouse slotting is a vital process for eCommerce businesses. It optimizes the relationship between inventory & warehouse and makes order fulfillment super easy. Mentioned below are the top benefits of warehouse slotting:

Faster Order Fulfillment and Better Cost Optimisation

Efficient warehouse slotting streamlines order picking for delivery agents and warehouse workers. The warehouse manager usually assigns easily-accessible slots to high-volume products. This means products that fly off the shelves quickly are placed near the loading deck for faster pickup and delivery.  

Workers can pick up more orders a day when your warehouse space is optimized. This also eliminates the need to hire additional workers during surge days, such as festive sale periods. And, since a streamlined and carefully organized warehouse optimizes employee output, it can positively affect your eCommerce business bottom line.   

Makes The Process Error-Free

When the inventory is aligned with the warehouse management plan, all stakeholders know about product location. This can save the warehouse manager and workers from the hassles of finding an item when the need arises. 

For example, if you sell red t-shirts, you can categorize the red t-shirts according to their size. Now, if a warehouse worker searches for a 42' red t-shirt, they can look at the appropriate slot and find it easily. It is also important for the warehouse manager to allocate safe spaces for delicate, fragile items. Appropriate storage reduces inventory shrinkage and facilitates a smooth operation. 

Hence, a proper warehouse slotting plan allows an eCommerce business to keep its warehouse management process error-free and achieve optimal efficiency.

Fantastic Utilization of Available Space

The biggest challenge an eCommerce business faces is finding a suitable location for the warehouse. eCommerce companies generally prefer setting up their warehouses in centralized locations. A warehouse in a centralized location helps them minimize the delivery costs and maximize profits. However, the land is perhaps the costliest thing on earth, a reason why eCommerce companies need to utilize the available space efficiently. Hence, proper space utilization is crucial.

Warehouse slotting enables you to maximize the available space. The warehouse manager must carefully evaluate the warehouse layout and assign correct slots to individual items. Hence, warehouse slotting can reduce your overhead expenses by optimizing the available space. 

Enhances Employee Productivity

A structured warehouse saves employees from running from corner to corner and sifting through loosely organized products. Not only does warehouse slotting save employee time, but it also increases employee productivity. 

When the warehouse is properly structured, employees develop a clear understanding of the slots. A well-laid-out slotting strategy, coupled with a carefully-designed pick-list, allows employees to maximize time utilization and saves them from cart collision. Hence, warehouse slotting can help employees enhance productivity and reduce employee turnover. 

Satisfied Customers Lead to More Business

The primary goal of an eCommerce business is to satisfy its customers. The more loyal and happy customers, the better the order volume and the higher the profits. Since warehouse slotting streamlines order picking up and delivery, it enhances customer trust. 

Although customers are not directly linked to warehouse slotting, they are the prime beneficiaries of a properly managed warehouse. A well-structured warehouse can deliver products earlier and make them satisfied. 

Shape Up Your Warehouse Slotting Strategy and Reap Rich Dividends

Warehousing slotting is no rocket science; you can slot the warehouse better by emphasizing the customers' needs. Explore Pickrr to experience next-gen shipping and order fulfillment services. Pickrr cloud-based shipping solutions software and wide serviceability offer you the right leverage to spread your wings beyond the ordinary and achieve spectacular results.