Warehouse Slotting 101: Methods + Optimization (2026) – Shopify

Summary

The episode explains warehouse slotting—strategically placing inventory to speed up picking—by distinguishing macro (zone-level) and micro (bin-level) approaches and outlining five core methods such as velocity (ABC) slotting, affinity grouping, handling constraints, zone slotting, and seasonal adjustments. It highlights the massive impact of picking on labor costs (up to 75% of warehouse expenses) and shows how proper slotting can cut labor by 15‑30%, improve throughput, reduce mis‑picks, and enhance space utilization. Practical steps are provided, from gathering a minimal data set (pick velocity, SKU dimensions, affinity) to implementing a slotting plan, stabilizing, and establishing a re‑slot cadence. The host also compares manual slotting to software solutions, noting when a WMS with a slotting engine becomes worthwhile.