Strategies to Optimize Distribution Center Storage for Slow-Moving, Low-Cube SKUs

Managing slow-moving, low-cube SKUs presents unique challenges for distribution centers. These products can occupy valuable storage space without contributing significantly to turnover. For supply chain consultants, finding efficient solutions is vital to improving operational efficiency and reducing costs. In this blog, we’ll explore actionable strategies to minimize the storage footprint of these SKUs while maintaining accessibility and inventory accuracy.

Why Focus on Low-Cube, Slow-Moving SKUs?

Low-cube SKUs—small volumes but potentially high storage requirements—can easily disrupt your storage system. When these items have slow movement, the inefficiencies compound, leading to:

• Underutilized warehouse space
• Increased operational costs
• Logistical bottlenecks

Businesses can reclaim valuable space and improve overall warehouse performance by optimizing storage methods.

Top Strategies to Minimize the Storage Footprint

1. Leverage Vertical Space

Maximizing vertical storage is an effective way to house slow-moving items without consuming floor space. Implement solutions like:

• High-density shelving
• Vertical lift modules (VLMs)
• Mezzanines for seldom-accessed inventory

This approach ensures efficient use of cubic space, freeing up ground-level storage for faster-moving items.

2. Implement Slotting Optimization

Slotting involves assigning specific locations to inventory based on size, movement rate, and demand patterns. For low-cube SKUs:

• Group items by similar demand rates to minimize retrieval time.
• Position these items in less prime storage locations to reserve high-access areas for fast movers.

Advanced slotting software can simplify this process, offering data-driven placement strategies.

3. Adopt Just-in-Time (JIT) Inventory Practices

For SKUs with irregular demand, consider reducing on-hand inventory through JIT practices:

• Collaborate with suppliers for smaller, more frequent deliveries.
• Use demand forecasting tools to align stock levels with actual needs better.

JIT minimizes overstocking, making storage more efficient.

4. Utilize Consolidated Storage Systems

Storage systems like mobile shelving or pallet flow racks can consolidate low-cube SKUs into a smaller footprint while maintaining organization. For instance:

• Mobile shelving systems eliminate unused aisle space by moving shelving units on tracks.
• Pallet flow racks allow for deeper storage of similar SKUs without requiring aisle access for every pallet.

5. Explore Outsourced Storage Solutions

Outsourcing to third-party logistics providers(3PLs) can be a cost-effective option for particularly slow-moving SKUs. This allows your facility to prioritize space for higher-turnover items while maintaining inventory availability through the 3PL network.

6. Deploy Advanced Warehouse Management Systems (WMS)

A robust WMS helps track real-time SKU movement, storage allocation, and replenishment needs. With the right system:

• Identify underperforming SKUs quickly.
• Allocate storage space dynamically based on activity levels.
• WMS integration can also support automation tools like robotic picking systems to retrieve low-cube items efficiently.

Key Takeaways for Supply Chain Consultants

Optimizing the storage of slow-moving, low-cube SKUs requires balancing space efficiency and inventory accessibility. Consultants should consider:

• Space-maximizing tools like vertical systems and consolidated racks.
• Process improvements, such as slotting optimization and JIT inventory.
• Leveraging technology through WMS and data analytics.

By implementing these strategies, distribution centers can reduce operational costs, reclaim valuable storage space, and improve overall supply chain efficiency.

Optimize Your DC Storage with KPI Solutions

As a leader in warehousing optimization, KPI Solutions specializes in addressing the unique challenges of managing slow-moving, low-cube SKUs. Beyond implementing turnkey automated solutions for warehouses and DC’s, we offer comprehensive consulting services to help you design, implement, and manage solutions that drive measurable results.

Our consulting expertise spans key areas like slotting optimization, 3PL outsourcing strategies, and process improvement. We work closely with your team to evaluate your current operations, identify inefficiencies, and deliver customized strategies that balance space efficiency, inventory accessibility, and operational costs.

Why Choose KPI Solutions for Storage Optimization and Consulting?

• Innovative Expertise: Proven strategies, advanced slotting techniques, and industry-leading technologies to enhance warehouse efficiency.
• Comprehensive Services: From vertical system integration to 3PL outsourcing and slotting optimization, our consulting solutions address every facet of storage challenges.
• Custom-Fit Solutions: Tailored strategies designed to align with your unique inventory, operational goals, and business objectives.
• End-to-End Support: From strategic planning to seamless execution and continuous improvement, we’re your trusted partner every step of the way.

Whether you’re looking to reimagine your slotting practices, outsource low-cube SKUs to trusted 3PLs, or maximize storage through consolidated systems, our consulting services deliver the expertise you need to transform challenges into opportunities.

Take the first step toward unlocking your warehouse’s full potential. Contact KPI Solutions today to learn how our consulting and integration services can help you optimize storage for low-cube SKUs and elevate your distribution center to new levels of efficiency and profitability.