Dynamic slotting: How your WMS uses AI to halve picking time

Logistics has never been so demanding.

Between the multiplication of distribution channels, the explosion of e-commerce and the constant pressure on delivery times, the performance of your warehouse is directly linked to the efficiency of your internal processes.

But have you ever measured their true cost?

Have you noticed that your picking teams are spending too much time traveling long distances to assemble a single order preparation?

This is where slotting (or space allocation) comes into play, going far beyond simple routine storage management. It's no longer about placing a product wherever there's space, but about strategically positioning it to minimize movement and maximize space utilization.

Dynamic slotting represents the evolution of this approach. Thanks to the integration of a WMS (Warehouse Management System) software, powered by Artificial Intelligence (AI), this technique allows you to reassess and optimize the locations of your SKUs (Stock Keeping Units) in real time.

This roadmap will reveal how this approach can transform your supply chain, reduce your operating costs and improve your productivity.

Are you ready to take your logistics performance to the next level?

From static to dynamic slotting: Gaining flexibility in the face of seasonality and activity peaks

slotting : low) and positions them accordingly: "A" products near order preparation and delivery dock areas, "C" products in more distant storage areas.

It's effective... as long as demand is stable.

But in today's business world, stability is an illusion. Consider:

• Seasonal activity peaks (Christmas, Black Friday).
• Unexpected promotions.
• New product launches.
• Unpredictable fluctuations in demand related to e-commerce .

This is where dynamic slotting comes in. It offers the flexibility needed to react instantly to these changes.

Warehouse Management System software becomes the brain of the warehouse. It no longer simply records the position of a product, it dictates it to optimize the logistics flow.

This inventory management uses algorithms to reassess and suggest new storage locations based on incoming orders and sales forecasts . In short, it's no longer the operator who adapts to the warehouse, but the warehouse that adapts to the order flow.

The ABC approach, the basis of slotting, revisited

The ABC method remains the foundation. However, in a dynamic approach, the category (A, B, C) is not fixed; it is recalculated.

A SKU that was "C" can become an "A" during a promotional week, and the warehouse management software should immediately suggest moving it to a more accessible area (e.g., near the picking area or a fast palletizing area).

Dynamic slotting takes into account additional criteria:

1. Physical compatibility: Weight, dimensions (for placement on shelving or palletizing), hazard level.
2. Order affinity ( co-packing ): Positioning together products that are often ordered at the same time to minimize the operator's journey during order preparation.
3. Specific strategies: Facilitate cross-docking or co-packing if necessary.

Definition and advantages of dynamic slotting

Dynamic slotting is a location allocation strategy that uses algorithms to continuously reallocate storage locations based on real-time data changes (order history, forecasts, product size, etc.).

Key business benefits:

• Reduction of picking time : Products are brought closer together, reducing travel time by 15% to 25%.
• Space optimization : The slots are adjusted to the size of the product, eliminating empty space.
• Increased productivity : Order preparation time is reduced, increasing the volume processed.
• Better peak management : The warehouse adapts instantly to seasonal variations and promotions.

The secret to operational excellence lies in the ability to make just-in-time allocation decisions, a feat made possible by the power of a modern WMS solution like our EGO WMS solution .

Actionable checklist: Evaluate your current slotting

1. Analyze picking data: Extract reports from your WMS platform. What is the average walking time per order preparation?
2. Identify the constraints: Determine the physical constraints of your warehouse (height, maximum weight, temperature zones, co-packing or palletizing locations).
3. Calculate the fill rate: What is the actual percentage of space used in your racks?
4. Evaluate "Nomadic" SKUs: Identify products whose ABC ranking changes significantly between seasons or promotions.

How AI analyzes your WMS data to suggest strategic relocations

The backbone of dynamic slotting is a high-performance WMS software. Whether it's a SaaS solution or a local installation , this system is responsible for tracking every movement, from goods receipt to the delivery dock.

WMS features for dynamic slotting include:

• Granular data collection : Accurate recording of order histories, picking frequencies, dimensions and weight of SKUs.
• Transaction history: Tracking of item movements, including those related to returns logistics or cross-docking operations.
• Interfaces with other systems : Connection to ERP, to transport management software (TMS) for more accurate forecasting, and to warehouse automation .

The WMS acts as a central brain, providing the enormous amount of data needed for artificial intelligence.

The algorithm: A high-performance decision engine

AI doesn't just duplicate the ABC method; it refines it exponentially. The algorithm takes into account a multitude of complex variables to determine the ideal location:

1. Product correlation (affinity):
   • Which products are most often ordered together? AI groups these items close to each other to optimize the picking time for a single order preparation.
   • Example: Coffee and filters, shampoo and conditioner.
2. Picking frequency vs. stock turnover:
   • A product can have a high inventory turnover (large volume) but be ordered in large quantities each time (few order lines). AI distinguishes between the frequency of product access and its total volume.
3. Size, weight and type of placement:
   • The algorithm ensures that the slotting respects the physical constraints (size of the slot, maximum weight, need for co-packing area).
   • Example: Heavy items near the ground (for safety reasons), bulky items in suitable locations.
4. Forecasts and seasonality:
   • By analyzing historical orders and data from your TMS software, AI anticipates activity peaks (Christmas season, sales) and reorganizes the warehouse before demand explodes.

According to a Gartner study, the adoption of AI and machine learning in the supply chain can reduce logistics costs by 15% by 2026. Investing in a WMS solution is therefore becoming a key factor in reducing your costs.

Checklist: The role of AI in your WMS solution

To ensure your WMS solution is AI-ready:

• Check connectivity: Is your WMS platform properly integrated with the planning system (ERP/Forecasting)?
• Qualifying the data: Is the data from your traceability software reliable and complete? AI is sensitive to "Garbage In, Garbage Out".
• Analyze the features: Does the WMS software have native WMS features for affinity analysis ( co-packing )?
• Calculate the ROI: If you are comparing WMS software or the prices of different WMS systems , make sure that the investment justifies the estimated productivity gain.

Practical implementation: When and how to physically reorganize the warehouse based on AI recommendations

Recommendations for relocating WMS software are optimization guidelines. However, the physical execution of the SKU ( reseeding or relocation ) must be managed with surgical precision to avoid disrupting ongoing operations.

Transforming theory into concrete actions on the ground

Having an AI recommendation is one thing; implementing it in the physical world of the warehouse is another. Reorganization, or relocation, is the most critical phase, as it can temporarily disrupt the logistics flow. This is where WMS software comes in, to manage this transition smoothly.

Dynamic slotting suggests not only where to place products, but also when to move them to minimize the impact on day-to-day operations.

1. The right time for reimplantation:
   • Off-peak periods: Reorganization should ideally be planned during low activity hours or at night, away from peak activity times.
   • WMS Triggering: Warehouse management software can be configured to generate restocking tasks when the stock of an item in its current location is low. This is called goods receipt management via slotting.
   • Efficiency threshold: Some WMS solutions recommend reorganization when the estimated efficiency gain exceeds a certain predefined threshold (e.g., moving a product "C" to a location "A" saves 100 hours of walking per month).
2. Optimized execution (the reimplantation task):
   • The WMS software generates priority relocation tasks for operators.
   • These tasks are often combined with existing input or output movements (mixed tasks) to avoid unnecessary back-and-forth movement. For example, an operator going to palletize might be assigned the task of moving a small SKU along their route.

The role of automation and traceability systems

The effectiveness of the relocation is amplified if your warehouse is already engaged in automation. In an environment with Goods-to-Man , AMR/AGV robots or shuttles directly manage the movement of items based on WMS instructions, making dynamic slotting almost instantaneous and without significant human intervention.

Even in a traditional warehouse, real-time traceability is essential. Once a product is moved, the operator must scan the item and its new location to instantly update the WMS. A simple oversight can lead to inventory errors and problems with inventory management.

Choosing your WMS solution: Specifications focused on slotting

Adopting dynamic slotting begins with choosing the right WMS solution. It's a strategic investment that defines the future flexibility of your supply chain. When writing your WMS specifications, the presence of advanced slotting features should not be an option, but a requirement.

Here are the key questions to ask your future WMS software provider:

• Is dynamic slotting integrated natively? Some WMS systems only offer dynamic slotting with a separate, expensive module. Look for a WMS solution that includes this functionality.
• What are the slotting parameters? Does the system take into account product affinity, seasonality, physical characteristics (weight, size, need for co-packing), and return logistics?
• Does the WMS manage transport logistics? Seamless integration with TMS software (or a native Transport Management System) allows you to anticipate needs based on delivery destinations and packing requirements.

The economics of logistics software: WMS pricing and ROI

Investing in WMS software, which can be expensive, may seem daunting. However, don't neglect to calculate the actual ROI (Return on Investment) generated by dynamic slotting.

• Reduced labor costs: Every percentage point of picking time saved translates directly into wage savings. A 20% reduction in travel time can mean thousands of hours saved per year.
• Space optimization: Improving your warehouse fill rate (up to 10% of space recovered) can delay or eliminate the need to expand or lease new storage space.
• Improved service quality: Reduced picking errors (thanks to clear locations) and faster shipments result in better customer satisfaction, a key element of the perceived value of your supply chain.

Ultimately, the purchase of a WMS solution is often quickly offset by the reduction in operational costs and the elimination of common logistical errors (bad packing, order preparation errors).

Actionable checklist: Choosing your WMS for slotting

1. Demand a slotting demonstration: Don't settle for a promise. Request a live demonstration of the dynamic slotting functionality based on your own data (if possible).
2. Evaluate the integrator's expertise: The integrator or publisher (link: publisher) of the warehouse management software must have proven expertise in logistics and logistics flow optimization.
3. Consider the SaaS model: A SaaS WMS solution generally allows for faster updates of AI algorithms and better scalability to meet your future activity peaks.

Dynamic slotting: your sustainable competitive advantage

Dynamic slotting is not just a technological trend, but a component of the digital transformation of the supply chain. By leveraging the capabilities of WMS software and AI, you move from simple reactive storage management to a proactive and predictive placement strategy.

The objective is clear : to make every step of the logistics flow shorter, more precise, and less expensive. From goods receipt to the delivery dock, the path is optimized, reducing picking time, improving packing, and ensuring highly accurate inventory management.

So, is your warehouse stuck in the past, or is it already an intelligent ecosystem that adapts in real time?

Contact our team of experts to obtain an audit of your logistics flow.

FAQ: Everything you need to know about dynamic slotting

What is slotting in logistics?

slotting is the strategic process of determining the ideal location (the slot ) for each item ( SKU ) in your warehouse, based on criteria such as order frequency (inventory turnover), dimensions, and order affinities ( co -packing ). The goal is to minimize handling time and costs, particularly picking. Companies have seen a 30% to 50% reduction in distances traveled through effective optimization.

What is the difference between static and dynamic slotting?

Static slotting assigns fixed locations to products based on historical data (such as ABC analysis), and these locations rarely change . Dynamic slotting , driven by an advanced WMS solution, uses real-time analytics and AI to adjust storage management locations regularly (sometimes daily or based on activity peaks) to adapt to fluctuations in demand, thus optimizing the logistics flow.

What is the role of the WMS in dynamic slotting?

The Warehouse Management System (WMS) software is the central tool. It collects all the data (order history, SKU , location, etc.), hosts the AI/optimization algorithms, calculates the WMS functionalities to suggest optimal relocations, and generates the work orders to execute them. This warehouse management software makes the dynamism and traceability of storage slots .

How is ABC analysis used in dynamic slotting?

The ABC method is the foundation, but it's made dynamic . In this context, the A (high inventory turnover), B (medium), or C (low) classification is frequently recalculated by the WMS software based on sales forecasts. A SKU that is usually "C" can be temporarily reclassified as "A" during a promotion and moved to a faster picking area, then returned to a more distant storage area after the peak period.

Can dynamic slotting help with returns logistics?

Absolutely. WMS software incorporating dynamic slotting can designate temporary or optimized buffer zones for returns management. AI can even suggest the ideal location for returned products that need to be quickly reintegrated into stock or undergo a co-packing process before resale.

What type of physical constraints does slotting have to deal with?

A good slotting system must manage constraints such as: the size and volume of products to optimize palletization, the maximum weights of the racks (for safety and poka-yoke reasons), temperature-controlled areas, locations reserved for hazardous products, and areas dedicated to packing or co-packing.