How to Handle Slow Movers
Moving fast inventory to generate quicker profits is a good supply chain practice, but with 80 percent of inventory typically tied up with slow moving items, wouldn’t it make more sense to try to move this inventory faster? Businesses can maximize their revenue generation by better managing slow-movers. In this highly competitive world, more and more companies are increasing their efforts to find operating efficiencies, lower costs and increase revenues. One way to do this is to better manage inventory.
Companies can have hundreds or thousands of SKUs sitting in the warehouse, valued in the thousands to millions of dollars, just sitting on a shelf until needed. Retailers can put these slow moving items on sale, put them into a discount warehouse environment and/or donate them to charities.
However, some slow moving items can be highly profitable and you want to capture as much revenue from them as possible; understanding how to slot and store them can help streamline their movements. Proper slotting not only delivers much needed space, but locates the fastest moving items closer to more accessible locations, minimizing travel distance and maximizing overall throughput and productivity.
Slow moving items need to be slotted into a side aisle so they don’t take up valuable shelf space near the forward picking areas that are reserved for fast movers. UNEX innovative storage solutions integrate slow movers into the pick line to reduce travel time for order pickers. They also save space by matching the size of the shelf to throughput requirements. For example, UNEX Roller Rack systems are gravity flow racks that optimize efficiency, safety and FIFO rotation on the pick line.
Inventory optimization tools have been gaining ground as companies seek to evaluate their entire network and determine the best inventory policies for each product at each node in their supply chain. These are typically stand-alone software tools that use data from WMS and ERP systems. UNEX’s slotting analysis software, SKUBE, can evaluate the movement of inventory and design a plan for managing slow movers.
High-density storage can improve efficiencies of slow (and fast as well) moving items by compacting space requirements for SKUs. By combining inventory management tactics and space-saving storage equipment, slow moving items will move faster and a great amount of hidden storage space within an existing facility can be found. UNEX can help companies find much needed space without adding real estate with state-of-the-art storage systems.