Warehouse & logistics
Slotting
By the Supply Chain Manager team · Updated October 16, 2026
Slotting is deciding which bin location each SKU should occupy, based on how often it is picked, its size and weight, and what it is usually ordered with.
Fast movers go in the easiest-to-reach locations near packing; heavy items go low; items often ordered together go near each other. Because demand changes, slotting needs reviewing from time to time.
A simple starting point is to rank SKUs by number of picks, not units, over the last few months, and give the top group the best locations. Units matter less than visits: a SKU picked 50 times a day in ones costs more walking than one picked twice a day in pallets.
Slotting example
Illustrative: the top 5% of SKUs by pick frequency are moved to waist-height bins nearest the packing benches. Average walking per order drops because most picks now happen in a small area.
Why slotting matters for distributors
Good slotting is one of the cheapest productivity gains in a warehouse: no new equipment, just stock in better places.
Common slotting mistakes
- Slotting by SKU number or supplier rather than by pick frequency.
- Never re-slotting after seasonal or range changes.
Examples on this page use made-up round numbers to show the calculation. They are not benchmarks or results from real businesses.