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.

Quick answer: Optimised ABC slotting reduces picker travel distance by 20–40%, increasing picks-per-hour by 15–30%. On a 20-picker operation at $20/hr: 25% efficiency gain = $200,000/year in labour savings.

📦 Warehouse Slotting Efficiency Calculator

ABC slotting typically delivers 15–35% gain
Analysis, WMS reconfiguration, physical relocation
Annual Labour Saving
Daily Saving
Slotting Program Payback

How to Use This Calculator

  1. Enter picker count, hours, and rate — fully loaded picker labour cost.
  2. Set efficiency gain — ABC slotting (fast-movers in golden zone near dispatch) typically delivers 15–35%. Start at 20% for a conservative estimate.
  3. 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.

  1. Daily labour: 20 × 7.5 × $20 = $3,000
  2. Daily saving (18% of labour): $541
  3. Annual saving: $135,164
  4. New PPH: 103.7
  5. 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.