When does dynamic slotting make sense?
Dynamic slotting is not necessarily relevant for all warehouses. The method delivers the greatest value in environments where demand changes over time, and where picking activities make up a significant part of total operating costs.
Dynamic slotting is typically used in companies with:
Many orders and high order volume
Products with very different picking frequencies
Seasonal fluctuations or campaign-driven sales
A strong focus on fast order processing and delivery
In more stable warehouses with low variation in demand, fixed storage locations may be sufficient, while dynamic principles provide greater flexibility in more complex setups.
How does dynamic slotting work in practice?
Dynamic slotting is based on continuous analysis of warehouse and order data. Using historical data and current movement patterns, the system assesses which items should be stored where in the warehouse.
A typical dynamic slotting process includes the following steps:
1. Analysing product movement
The system analyses data such as picking frequency, sales volume, and order patterns to identify high- and low-frequency items.
2. Prioritising storage locations
High-frequency items are placed closer to packing stations or in easily accessible zones, while slower-moving items are moved further away.
3. Continuous adjustments
Storage locations are continuously adjusted as demand changes—for example ahead of peak seasons or campaigns.
4. Execution in the warehouse
Relocations are carried out as part of daily warehouse operations, often planned during low-activity periods to minimise disruption.
To work effectively, dynamic slotting requires a clear overview of the warehouse layout and up-to-date data on product movement.
Benefits of dynamic slotting
When applied correctly, dynamic slotting can deliver noticeable improvements in daily warehouse operations:
Shorter picking routes
By optimally placing the most in-demand items, the distance employees need to walk is reduced.
Faster order processing
Less time spent per pick means more orders can be handled in less time.
Better use of warehouse space
The warehouse layout is based on actual usage rather than static assumptions.
Greater flexibility
The business can quickly adapt the warehouse layout to changes in demand.
These benefits are closely linked to efficient inventory management and a smooth order flow.
Dynamic slotting and its connection to warehouse processes
Dynamic slotting affects not only where items are stored, but also the collaboration between warehouse operations, picking, and planning. The method requires that relocations, picking, and replenishment are coordinated to avoid unnecessary work.
That is why dynamic slotting often ties closely into both order management and purchasing management, as changes in demand can quickly impact which products should be prioritised in the warehouse.
Examples of dynamic slotting in practice
An e-commerce business experiences that certain products sell significantly more in the lead-up to Christmas. With dynamic slotting, these items are moved closer to the packing area during peak season and moved back again when demand drops.
In a wholesale business, sales data may show that certain items are picked more frequently on specific weekdays. In this case, dynamic slotting can be used to temporarily optimise item placement and reduce congestion in warehouse aisles.
How does dynamic slotting relate to Rackbeat?
Dynamic slotting is closely linked to the use of a WMS, where data on product movement, storage locations, and orders forms the basis for decisions about warehouse layout.
By working in a structured way with warehouse data and order flow, companies can create the conditions needed to continuously adjust storage locations and improve picking efficiency—without losing overall visibility of the warehouse.
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