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ABC classfication vs Product Slotting
Is ABC analysis and product slotting referring to the same thing?
ABC analysis is a method whereas product slotting is a activity.
Let me try to clarify this. Product slotting is essentially the decision to place certain inventory in certain warehouse storage locations. The driving factor is to fully utilize the storage space, with the objectives of increasing picking productivity and reducing the picker's travelling time.
One such way of meeting the objective is by placing the inventory strategically. ABC analysis is one such method. In some context, this is also called the Pareto Analysis. Inventory are classified as high runners or slow movers, according to the frequency it is being ordered and picked.
High runners should be placed nearest to the staging area/dock area, and most accessible level (preferably 1st or 2nd tier of the pallet rack). For slow movers, they should be stored further in the warehouse, less accessible locations. Dead stock (non moving) should be placed in the most inaccessible area.
Most of the time, operations do not practice this. Rather, the putaway team will slot the items according to where there are available space.
There are some articles you can find in our website as well.
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Https://warehouseblueprint.com/warehouse-heatma p" target="true">ABC tool