D365 | SCM | Advanced Warehouse Management | Warehouse Slotting

Hello Everyone!

In the?corporate world,?if you have analysts,?due diligence, and no horse sense, you've just described hell.” — Charlie Munger

Today, at this moment of time, allow me to have the prestige to share a Classic Day-to-Day Conversation from the Corporate world

Business User: Ali, do you know about the new feature released by Microsoft, it's now available in the standard product, why can't we use that?

Ali: Why not, but first let's draw the business process, identify the business process owners from all the streams, finalize the SOPs, elaborate on the business challenge, list the requirements, document and conclude the proposed solution, sign and stamped by all the business process owners ...

Remember "Enabling the feature" is always the last step in D365

Abstract

Warehouse layout design is one of the most important aspects of the Warehouse management system. Trust me, If the warehouse is designed smartly we will find out more space in the same warehouse. I have seen warehouses that are not performing well only because of incorrect design and gaps in the layout.

The slotting feature will help to organize the warehouse operations. Better slotting means more space will be available for the upcoming items. Slotting will increase visibility and reduces the travel time or footprints for the pickers.

Remember: The first step is to draw your warehouse.

What is Warehouse Slotting?

Warehouse slotting is?the process of organizing the inventory in a warehouse or distribution center. The overall goal is to make both picking and replenishment quicker, easier, and more efficient.

Why do we need Warehouse Slotting?

Warehouse slotting is required to place the frequently used items near to workbench. There are two ways to perform warehouse slotting.

1. Macro slotting: Optimizing the overall layout of the warehouse
2. Micro slotting: How individual items or pallets are placed in specific locations in the warehouse(From Zone, ... to shelves)

Data gathering for slotting

Before you start the warehouse slotting configuration, make sure to prepare the following data for warehouse slotting.

• The unit of measure for the SKU
• storage level for the SKU (Pallet, Rack, Shelf, Carton)
• Volume and weight for the item
• Classify Fast and slow-moving items
• Seasonal fluctuations for the SKU
• Is there any special storage requirements for the items?
• The velocity of items (“fast-moving SKUs stay accessible and slow-movers stay out of the way.”_you need to place your faster-moving SKUs closer to the down-forward picking area. This cuts down on travel time for your pickers.

WMS Slotting Feature

The?Warehouse slotting feature?lets you consolidate demand by item and unit of measure from orders that have a status of?Ordered,?Reserved, or?Released. Generated demand can then be applied to locations that will be used for picking, based on quantity, unit, physical dimensions, fixed locations, and more. After the slotting plan has been established, replenishment work can be created to bring the appropriate amount of inventory to each location.

Replenishment Flow in D365

Below is the high-level replenishment flow, the same will be configured and processed in the D365 Warehouse Management module.

Prerequisite setups

• Slotting unit of measure tiers
• Directive codes
• Slotting templates
• Work template for Replenishment
• Location directives for Replenishment

Setup - Slotting Unit of Measure

First, we need to create the slotting UoM. I have defined the unit "ea" for this demo. The unit class is "Quantity".

Setup - Directive Codes

Directive codes will be created and linked with the location directive and template.

I have created on directive code "SlotRep", I will associate this code with the location directive for Replenishment.

Setup Slotting Template

The most important setup to run the warehouse slotting is the "Slotting template". The slotting template will be used to configure and process the replenishment.

Path: Warehouse Management > Setup > Replenishment > Slotting Templates

Demand Type

• Ordered?– The full ordered quantity on the sales order should be considered demand.
• Reserved?– Only the sales order line quantities that are reserved (physical and ordered) should be considered demand.
• Released?– The released quantity should be considered in demand.

For this demo, I have selected the demand type "Sales orders" and demand strategy "Ordered".

• Allow wave demand to use unreserved quantities:?"Yes"
• Fixed location usage: Fixed and non-fixed locations.

Work Template

Create one work template for the work order type "Replenishment". This will create the replenishment work to replenish the stock from bulk to picking locations.

Setup - Location Directive

Create a location directive for the work order type "Replenishment". Location directive will direct the warehouse user to pick the items from the bulk location and put items at picking locations.

Location Directive - Edit query

For picking, I have defined the location profile ID "Bulk" in the edit query.

Business Scenarios

I will cover the following two scenarios in this blog

• Scenario 1 - Assign Slot Criteria "Assume Empty"
• Scenario 2 - Assign Slot Criteria "Consider Quantity"

Scenario 1 - Assign Slot Criteria "Assume Empty"

Step by Step Process |

Generate demand through "Sales orders"

I have created two sales orders with the requested ship date of 7th July.

Slotting template

Warehouse slotting template workspace will help to monitor and control the demand for the sales orders and transfer orders.

For the first scenario, I selected the option "Assume empty" in the assigned slot criteria.

Click "Generate demand", and the system will process and create the demand for the selected delivery date in the Edit query. I have selected the delivery date 7th July.

Assign Slot Criteria

• Assume empty?– This system should assume that all locations in the picking area are empty and should not check those locations for inventory.
• Consider qty?– The system should check the locations in the picking area for inventory and should skip any locations that aren't empty.
• Consider on-hand?– The system should check whether any target location contains unreserved quantities for the item on the demand line. If the quantity is large enough to satisfy at least one unit of the demand line, the generated slotting plan record is reduced by the available amount. For example, if the demand is 10 cases, and one case is on hand, the located demand will be nine cases. If the demand is 10 cases, and one each is on hand, the located demand will be 10 cases. This value is available only when the?Warehouse slotting allocation enhancements?feature is turned on.

Slotting Demand

Click slotting demand, and the system has generated the slotting demand in the below screenshot Demand qty "3".

Locate demand

The next step is to locate the demand.

The system has generated the slotting plan, click the slotting plan to view the details

Run Replenishment

Run the replenishment and the system will create the Work as mentioned in the below screenshot.

Scenario 2 - Assign Slot Criteria "Consider Quantity"

Step by Step Process

For the 2nd scenario, I have selected the "Consider qty" option for the assigned slot criteria.

Perform the steps to Generate and locate demand and validate the slotting plan.

Slot demand located

The slot demand has been located for the location defined in the location directive (Location profile Bulk)

Run Replenishment

The system has generated the work for replenishment.

Work Created

Validate the work in the work form. The work order type is "Replenishment".

Step by Step Process | Scenario 3 - Assign Slot Criteria "Consider on-hand Quantity"

Run the criteria for "Consider on-hand quantity"

Work is created

Conclusion & Recommendations

• Several warehouses slotting features are available to help warehouse managers intelligently plan to pick locations before they release orders to the warehouse and create picking work.
• The warehouse slotting feature is available for the transfer orders, you need to enable this feature from the Feature management workspace.
• Replenishment and picking will take less time if the slotting has been performed well for the items in the warehouse.
• Slotting minimizes the bottleneck for items and waiting time for the pickers.
• Slotting will help to optimize the warehouse space
• Slotting will minimize the travel time or footprints for pickers
• Slotting saves labor costs and manhours to perform warehouse operations

I hope you like the article, keep connected and?Walk the Talk.

Feel free to share your feedback in the comments section.?

Truly Yours,

Ali Danish?

ERP Microsoft D365FO Solution Architect | Corporate Trainer

M: +971554912688