Smart Slotting - Warehousing Strategy with AI

Intelligent storage location search with Smart Slotting

Storage location allocation is a significant process that has a lot of influence on transport routes and thus also on performance in the warehouse. With Smart Slotting, IGZ has developed a technology that is capable of significantly reducing storage and retrieval times in automated warehouses: This is because artificial intelligence (AI) determines the optimal storage locations for the respective handling units in a highly automated manner.

The technology is promising regardless of the industry. The effect for your warehouse is checked by means of a quick potential analysis based on historical data. The Smart Logistics Cockpit (SLC) enables real-time monitoring of warehouse performance through the recorded KPIs.

Application area

Storage bin allocation occupies a central position in logistics: The assigned storage locations and the accessibility of the stored products influence the storage and retrieval times and thus quite significantly the performance of the entire warehouse. This is particularly evident in the case of fast-moving items, which are used more frequently than other items. For this reason, they should be stored so that they can be reached quickly. On the other hand, items that are only needed moderately often or rarely should be stored in downstream zones.

With Smart Slotting, IGZ has developed a technology that once again significantly optimizes the storage strategy: Artificial Intelligence (AI) and the experience from all IGZ projects in the form of history data are used to dynamically determine the ideal storage location for each putaway. The AI always uses the current data to optimally divide the warehouse and dynamically determines the best zone for each putaway. Smart Slotting can be used in both automated warehouses and manual warehouses. There is particularly great potential in the case of seasonal fluctuations or frequent changes in the product range.

The only prerequisite for using Smart Slotting is that the warehouse is controlled by SAP EWM.

Functions / Advantages

Reduction of storage and retrieval times in automated warehouses
Automated, continuous analysis through AI
AI identifies optimal indicator per warehouse type
Fast response to changes in product range/demand
More potential through optimization of zone sizes and numbers
Analysis shows potential with many industries (e.g. food, chemical, sanitary)
Simple, fast potential analysis for existing warehouses possible

Architecture / Technology

Easy SAP integration as IGZ Best Practice
Lean intervention in warehousing strategy, thus retrofittable at any time
AI system use in the cloud or on-premise possible
Secure, encrypted connection of the systems
Provision of KPIs
Optimal integration in Smart-Logistics-Cockpit (SLC) possible

Key Facts

Consistently high performance through dynamic calculation of ABC indicators from collected history data
Adaptive ABC classification of storage bins to respond to trends
Upgradeable at any time with easy installation as IGZ Best Practice
Determination of optimization level through analysis of customer-specific data
AI algorithm according to requirements from all IGZ projects

AI without risk

Switch to AI solution possible at any time (can also be switched back)
Fail-safe, as no core process is changed (minimally invasive) e.g. for food, fixed rules remain in place
"Productive test report" (report for preview of AI evaluation )
Validation of AI effectiveness through KPIs