Pennsylvania-based distribution centre technology provider Lucas Systems is using AI and machine learning to speed up slotting decisions in warehouses.

The firm’s Dynamic Slotting provides in-the-moment re-slotting decisions thanks to the use of artificial intelligence (AI).

From a few button pushes, the software will intelligently sift through an abundance of warehouse data to serve up optimal slotting recommendations. The results take minutes to generate, whereas traditional slotting analysis often takes months to complete using engineering resources or consultants.

The recommendations identify product moves that offer the biggest potential payback. Hundreds of parameters are taken into account including demand seasonality, item size, SKU velocity and costs. Its similarity detection prevents placing related items side by side to reduce picking errors.

Lucas Systems provides software to workers in more than 400 warehouses across four continents. It says its Dynamic Slotting can replace what is typically a cumbersome, long and expensive process that is seldom done. Dynamic Slotting gives warehouse operators the ability to re-slot every day, keeping warehouse slotting in optimal shape.

“This is a game changer for how the industry operates,” said Lucas Systems CTO Scott Mullins. “Traditional slotting is fraught with challenges. Dynamic Slotting gives on-floor managers and supervisors the power to optimally re-slot on the fly.”

The technology applies machine-learning algorithms to recommend which products should be moved. It also learns the spatial characteristics of a warehouse and predicts task time based on activity-level data. The model then continues to learn, providing continuous optimisation as conditions change.

“It’s the type of slotting that every supervisor or manager can use,” said Mullins. “This ease-of-use means re-slotting can be done more often by those on the floor, which is key to overall optimisation.”

Rotary Corporation (www.rotarycorp.com), a supplier of outdoor power equipment parts, has been partnering with Lucas Systems on Dynamic Slotting.

“The ability to quickly and frequently make optimal slotting decisions is extremely impactful because it contributes to optimal picking efficiencies, cost savings and meeting our customer promises,” said Rotary Corporation COO Donald Fountain. “If we are making those decisions in an agile way – dynamically – we are gaining the most efficiencies.”

Dynamic Slotting promises a 20 to 40% increase in throughput because it recommends best locations for inventory based on SKU velocity, SKU affinity, product and slot information, pick paths, and other data. Specifically, it promises an increase of 5 to 20% in productivity, 10 to 20% labour cost savings, and a one to five per cent improvement in accuracy.

Lucas Systems (www.lucasware.com) helps companies transform their distribution centre by increasing worker productivity, operational agility, and customer and worker satisfaction using intelligent software with speech recognition and AI optimisation technologies.