Live from NCOF: the joys of ABC slotting

Nashville, TN–To improve picking productivity and reduce the distance your pickers travel every day, consider the ABC method of slotting. That was the suggestion of Michael Wohlwend, director of alliances for supply chain provider Atlanta-based Manhattan Associates, during an April 30 session at the National Conference on Operations and Fulfillment (NCOF) here.

Wohlwend advised using the 80/20 rule–which says that 80% of your sales come from 20% of your products—to determine where to store inventory in the warehouse. Put your fastest movers, the A products, in the front. Then put your B products behind the “A” products. Your slowest-moving products, the C merchandise, should be stored at the back of your distribution center.

ABC slotting requires monitoring and continual evaluation, Wohlwend added. “As reorders occur,” he explained, “an item you thought was once a fast mover could drop to a B or C item.”

Cosponsored by “Operations and Fulfillment” magazine and the Direct Marketing Association, NCOF runs through Wednesday at the Opryland Resort here.