Is Slotting Software Really Worth The Purchase?

"People should not be subservient to technology."- Jeffrey Liker from "The Toyota Way".

The question reminds me of Toyota Way Principle 8, which states, "Use only reliable, thoroughly tested technology that serves your people and processes." In fact, the subject brings to mind several of Toyota's principles, most notably 7, 9, and 12.

No, I am not saying that all slotting software is junk, or that slotting tools do not have any use. What I do want to do though, is challenge the thinking that causes one to consider purchasing a slotting tool. What are your expectations? In operations, we tend to love new technology. I know this because the free logistics periodicals I read each month would not be free if somebody were not purchasing the fancy gadgets advertised on every other page. Again, why are you considering purchasing, or why did you purchase slotting software? What did you expect from it? Did you really think that you could put a person, any person behind that computer monitor and expect them to work magic? 

I have used, or attempted to use software, and I have to tell you, as an operator, I don't trust it. I was once being interviewed by a gentleman who was proudly explaining to me how well the software his company had purchased would work. He told me how the box would change colors when it was time to move the product. I asked a simple question. "What if there is an outstanding PO on that SKU?" The question left him perplexed. Apparently, the people who built that software had never worked in a warehouse. 

I realize that some of these slotting tools have some really good reporting, and can be configured to do some really cool things, like maybe consider inbound POs. But can a company not, with a good logistics IT team, create that same reporting themselves? It has been my experience that most can write better, more customized reports. If your company is sold on slotting software, please remember, that all you are purchasing is a tool. You are not purchasing a person that understands the seasonality of your company, it's product mix, it's swings in inventory, event pushes, etc. Also, remember that this tool you are purchasing, likely has the word optimization in it's title. Think of optimization as a nice coat of wax on a new car. You can shine that thing all you want, but it's still a Yugo. Are all of those in and out of the "golden zone" moves really value added? Slotting done well, is all about things like "right sizing", reduction in travel time, reduction in replenishments, grouping by type, reducing touches, improving flow. Do those things right, and you'll have a Lexus. Even if you don't get around to waxing the thing (optimization), it's still a Lexus. And by the way, that shiny Yugo is still a Yugo! I have met several people who have worked in slotting at some point in their career. A few of them have had the "pleasure" of using some sort of slotting software. I have never heard one, not one, brag about how awesome it was. Most, told me how they had to stop using it. That has been my experience.

In closing, if you are interested in "helping" your team do a better job, ask those individuals what they need from you, how you can help them. That will likely get a much better result than purchasing some expensive software that you think they need.