Warehouse Slotting Efficiency Calculator — ABC Slotting Labour Savings
Calculate labour savings from optimised warehouse slotting. ABC slotting puts fast-movers closest to dispatch — reducing picker travel time and increasing picks-per-hour.
📦 Warehouse Slotting Efficiency Calculator
How to Use This Calculator
- Enter picker count, hours, and rate — fully loaded picker labour cost.
- Set efficiency gain — ABC slotting (fast-movers in golden zone near dispatch) typically delivers 15–35%. Start at 20% for a conservative estimate.
- Enter slotting program cost — data analysis, WMS reconfiguration, and physical slot relocation — typically $10,000–$30,000 for a mid-size warehouse.
Worked Example
20 pickers, 7.5 hrs/day, $20/hr, 85 PPH, 22% efficiency gain, $15K slotting cost.
- Daily labour: 20 × 7.5 × $20 = $3,000
- Daily saving (18% of labour): $541
- Annual saving: $135,164
- New PPH: 103.7
- Payback: 1.3 months. ROI: 801%
ABC slotting is one of the highest-ROI, lowest-risk warehouse improvements available. It requires no new technology — just data analysis and physical relocation of inventory. Payback is typically under 3 months.
Frequently Asked Questions
ABC slotting assigns warehouse locations based on pick frequency: A-items (top 20% of SKUs, ~80% of picks) are placed in the "golden zone" — waist height, closest to the pick start/dispatch area. B-items in secondary zones. C-items (slow movers) in hard-to-reach locations. This minimises travel and bending time for the highest-frequency picks.
Quarterly for fast-moving operations with significant demand seasonality. Annually minimum for stable assortments. Trigger a re-slot when: new high-volume SKUs are introduced, seasonal shifts significantly change velocity rankings, layout changes, or after major product range changes. Some WMS systems automate slot recommendations continuously.