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Most providers agree that slotting and LMS are complementary, with LMS metrics helping to determine when slotting might be needed, and labor management functions helping to test the labor costs of slotting recommendations.
While the debate continues over how frequently most warehouses need to reslot, vendors agree that users need to be proactive in using slotting, LMS, as well as warehouse management system (WMS) functionality to reduce travel times, boost labor productivity, and keep product in optimal locations, especially given growing multichannel fulfillment complexity.
Sterling Commerce, a solutions provider and a subsidiary of US communications holding company AT&T Inc (NYSE:T), announced on Monday (18 February) the availability of a new slotting engine with Sterling Warehouse Management.
The addition of the slotting engine adds another tool that will help companies increase revenue growth through improvements in order fulfillment volumes without adding staff or space, and respond to changes in product volumes and seasonality to maximise product placement and picking productivity.
The study focuses on slotting allowances paid to some retailers in certain geographical areas in five product areas--fresh bread, hot dogs, ice cream and frozen novelties, shelf-stable pasta, and shelf-stable salad dressing.
According to the NBWA, the proposed rule prohibits slotting fees under both the "tied house" and "consignment sale" sections of the Federal Alcohol Administration Act (FAA).
The Service concluded in its draft coordinated issues paper that slotting allowances are generally nondeductible capital expenditures, since they provide a benefit substantially beyond the tax year in which incurred.
"The odds are that anyone reading this story has tried to solve the slotting problem, either manually or with applications, " says Tom Kozenski, vice president of industry strategy for JDA Software.
"The majority of customers will tell us they know they should do slotting," says Ron Grove, vice president of supply chain consulting for TZA Consulting.
Whether you're managing a small facility or a large distribution center, whether you've got fast or slow moving product, there's a slotting strategy that's right for you.
The more I study companies' specific situations, the more it becomes dear that improving slotting practices is a complicated process.