In fulfillment centers, "slotting" is the process of assigning the designated storage and picking locations for each SKU in your inventory. For most facilities that decide to reevaluate their approach to slotting, the goal is usually to bolster picking times. However, what many don't realize is that slotting improvements can also yield operational advantages that impact the entire warehouse, such as:
- Operating costs – Effective slotting can improve intra-warehouse transit times across the board, lowering the net costs of any SKU moving activities.
- Overall space efficiency – optimized slotting improves warehouse space utilization, which in turn can often delay an expensive facility expansion or move.
- Picking accuracy – reevaluating your current slotting arrangements is also an opportunity for better delineation of similar products or variants to reduce picking errors.
- Picking efficiency – optimized slotting is not only about shortening distance; accessibility improvements should also be considered. Slotting fast-moving SKUs into locations that are easier to pick from (i.e. with no bending or reaching) can reduce replenishment trips and speed up put-away and picking times.
- Equipment demand and personnel routing – better slotting can help reduce traffic congestion in your warehouse's active zones and contention for material handling equipment.
To start making improvements to your warehouse's slotting, there is information about your SKUs you should collect first. Product criteria such as sales velocity, order frequency, size, weight, and other data points will all help inform how products should be slotted in relation to each other and in relation to your warehouse's major activity zones.
By aligning that data with your operational goals, you'll have necessary information to revamp your slotting assignments. In our next blog post, we'll go over some best practices to keep in mind for developing your slotting strategies.
According to research from the National Retail Federation, 73% of consumers ranked “sales and price discounts” as top factors for deciding where to shop. In the heyday of brick-and-mortar retail, it was common for stores to attract these prudent shoppers with highly-publicized mega-sales (typically held on a “Sunday, SUNDAY, SUNDAYYY!”). With the instantaneous nature of internet shopping, today’s ecommerce equivalent would probably be “flash sales.”
Like their predecessors, flash sales are great for attracting consumers’ attention, driving brand awareness, and boosting sales. However, the surges in traffic to your site and order volume can strain your internal resources and hamper customers’ experience. To ensure a successful flash sale that satisfies your customers, use the following tips to prepare.
Get the word out
Besides good deals, flash sales are known for their hype! Take the time to analyze your target audiences and develop a marketing strategy to stoke those fires so your flash sale is truly effective at engaging consumers and driving business.
A good flash sale quickly cycles through lots of different discounts, which engages shoppers who stick around to see what deals come next. Your assortment should be large enough to entice the widest variety of customers.
Flash sales foster a sense of competition to seek and find deals faster than other consumers. If your site search bar is ineffective at finding products, you stand to lose the many mobile users who are accessing your flash sale throughout the day. Make sure your ecommerce site's search functionality has mobile-friendly features, such as autocomplete and search refinements (e.g. brand, color, size, price, etc.) with tap-friendly dropdown lists.
Ease of Transaction
The checkout process should just as speedy as your flash sale. Make sure to eliminate as much checkout friction as possible. The longer it takes to checkout, the more likely that shoppers' excitement from scoring a deal will wear off and they'll abandon their carts.
When it comes to order fulfillment, the weight and volume measurements of products are a major factor that affects shipping costs, warehouse capacity planning, and more. With this in mind, more and more fulfillment centers are "dimensioning" their inventory – using specialized technology to determine the exact cubic and weight measurements for each SKU, recording that data, and incorporating it into a warehouse management system (WMS). After dimensioning each SKU in your inventory, you'll have valuable data for optimizing your facility. By leveraging your dimensioning data strategically, you can greatly improve areas such as:
Shipping cost estimates
Because the process provides exact data, dimensioning can dramatically improve the accuracy of your shipping cost estimates - making them more akin to shipping cost quotes. By eliminating the inaccuracies of manual measurements, you may also see a decrease in accessorial fees and other freight charges (even on small packages).
Order packing efficiency
With the dimensioning data loaded into your WMS, cartonization functions can be used to instantly determine the best box (carton) size, rather than relying on a human's best guess. In addition to saving time by eliminating the trial and error of finding the correct size shipping boxes, this can also reduce the waste from large, air-filled parcels and unnecessary dunnage.
Similar to the advantages of cartonization, dimensioning can make your slotting process simpler and more efficient. If your WMS also knows the dimensions of the facility's product storage areas, it can recommend the most advantageous location.
Capacity & expansion planning
Dimensioned inventory greatly assists in planning for capacity changes or future expansion. Whether you need to determine the design of a conveyor system, or what types pallet racks will best meet your needs, having your inventory's dimensioning data on hand can be an invaluable time-saver.
Emerging technologies are a hot topic in the world of distribution and fulfillment operations. From advancements in mechatronic picking to new types of cloud-based WMS software, it's easy to come away from an industry conference feeling awestruck at what the future might hold. However, the recent DC Measures Study from the Warehousing Education and Research Council (WERC) indicates that the actual adoption and integration of these technologies is slow, with little signs of popularizing any time soon.
According to WERC's survey of 549 industry professionals, more than two-thirds of warehouse managers said people (not technologies) are the most important assets in their operations. Reflective of that, 35% of the fulfillment centers surveyed said they currently do not use a warehouse management system (WMS) – instead relying on "manual means such as Excel and disparate modules" to handle typical WMS functions. When asked about technologies they expected to implement over the next 10 years, more than 25% of those surveyed said they were “not likely to incorporate” sensors (e.g. RFID) or robotics/automation equipment. More than 50% said they were not likely to incorporate 3D printing, blockchain, drones, or driverless vehicles.
So, what types of technology are warehouses using? According to WERC’s survey,
- 25.8% have installed voice-directed picking (up from 5.7% in 2008)
- 18.3% use radio frequency identification (RFID)
- 12% use pick-to-light
- 11.1% have installed automated storage and retrieval systems (AS/RS)
- 75% use some type of barcode and RF scanning system
- 42.7% plan to implement “some form of real-time data and analytics” in the next 1-2 years (it’s worth noting that certain types of WMS, like the one we offer, have these features built-in)
- 33% plan to implement mobile technology within 1-2 years
- 26.6% plan to implement Internet-of-Things (IoT) technology within 1-2 years
While warehouses’ adoption rate of technology has certainly not been fast, it may not be as slow as this report indicates. After all, technology that is growing, like WMS solutions and IoT technology, are prerequisites to successfully deploying more advanced systems like robotics and automation equipment. Perhaps this is a case of “learning to walk before you run.”
From the perspective of customers, the checkout process is the most tedious part of shopping online. With that mindset, it's no wonder that many ecommerce sites struggle with cart abandonment.
The less time and actions your checkout requires, the more likely users will be to complete their orders. While looking for ways to streamline the design of your cart and checkout pages can be very effective in this regard, there are other strategies you can deploy to improve your checkout process to make it more convenient for customers, such as:
Alternatives to account creation
If your ecommerce site requires account creation to complete a purchase, you may want to consider alternatives like Guest Checkout and/or social media login functionality. While account creation helps you collect information about your customer base, the process adds more steps to what should be the simplest part of your ecommerce site.
More convenient payment options
Alternative payment options are designed to shorten the checkout process by eliminating the multiple form fields required for credit card payments. Additionally, the more payment options you can accept, the more customers you can serve. However, there are many systems to choose from – so consider surveying your customers to find out which alternative payment options are most popular for your target audience.
Autofill form fields (even for coupons)
By streamlining the process of inputting information, you can speed up your checkout while demanding less effort from your customers. Incorporating autofill features into your forms accomplishes this while also reducing the amount of errors that come from manual user input. By autofilling the coupon field with your latest promotion, you instantly show customers your best deal so they don't have to shop around – perhaps the most common motivation for abandoning the cart.