Case Study: How a 3PL Reduced Labor Costs by 40% with Slot3D Warehouse Slotting Software

The Challenge: Inefficient Slotting in a High-Volume Distribution Network

A leading third-party logistics (3PL) provider supporting a national beverage distributor was managing thousands of SKUs across a high-volume distribution network. As order volumes grew, so did challenges:

• Rising warehouse labor costs

• Long pick paths creating inefficiencies

• Slower fulfillment times due to unnecessary travel

Leadership realized that a one-time warehouse redesign wasn’t enough. They needed a data-driven warehouse slotting solution to continuously optimize SKU placement and picking efficiency.

Current State Slotting Analysis

To understand the problem, the 3PL analyzed order data from July 17 – August 17. Slot3D’s warehouse slotting software generated a current-state travel report, highlighting:

• Travel distances and times for picking activities

• Labor costs associated with travel required for picking

• Time required to pick orders over the one month time frame

A visual heat map of the facility revealed where most lines were picked and exposed SKU placement inefficiencies.

Current State Slotting - Travel Report for 1 Month (July 17th - August 17th)

The Solution: Slot3D Warehouse Slotting Software

The 3PL implemented Slot3D, a leading warehouse slotting optimization tool, to transform its operations.

Using Slot3D’s economic slotting algorithm, the team created a future-state slotting plan by:

• Comparing current vs. optimized travel cost reports

• Generating heat maps to visualize SKU activity

• Producing a detailed Reslot Moves Report with executable instructions for re-slotting products

This approach turned slotting into a proactive, data-driven strategy rather than a reactive redesign. The visual heat map represents the percent of lines picked from the slowest movers (blue) to the hot picks (red).

Visual Heat Map of Facility Current State - % Lines Picked

The Results: Measurable Efficiency Gains

• Improved Picking Efficiency: Future-state slotting plan reduced total travel distances and operating costs.

  

  Future State Slotting - Travel Report for 1 Month (July 17th - August 17th)

• Labor Savings: Within just one month, the beverage distributor achieved a 40% reduction in labor costs for picking activities.

• Data-Driven Insights: Slot3D’s heat maps and reslot reports provided ongoing visibility, empowering warehouse managers to continuously optimize slotting and stay ahead of demand changes.

  
  

Future-State Slotting Insights

Slot3D’s future-state model showed exactly where every SKU should be slotted to maximize efficiency. Key improvements included:

• Optimized Picking Zones – Balanced workload and reduced congestion in hot zones

• Cycle Count Accuracy – Reduced errors by grouping SKUs more logically

• Congestion Visibility – Heat maps highlighted bottlenecks in red and orange, enabling teams to spread work evenly across the facility

• Replenishment Efficiency – Faster-moving SKUs were strategically slotted to minimize replenishment travel and downtime

By dumping outdated slotting strategies and relying on Slot3D’s analytics, the 3PL gained a scalable, repeatable slotting process that improves both productivity and inventory accuracy.

Optimizing Productivity with Slot3D

Beyond reducing labor costs, Slot3D helped the 3PL increase productivity across multiple warehouse activities. By reslotting SKUs with data-driven precision, the operations team improved performance metrics such as:

• Lines per hour, cases per hour, and eaches per hour

• Reduced travel time for forklift operators by cutting unnecessary driving

  
  

“We don’t want to pay our fork operators to drive—we want them pulling freight. Slot3D helps us pay for productivity, not for wasted drivetime on the floor.”

— Operations Manager, 3PL Beverage Distributor

The Impact: A Proactive, Scalable Slotting Strategy

With Slot3D, this 3PL shifted from reactive warehouse slotting to a proactive, analytics-driven process. The result:

• Faster fulfillment times

• Lower labor costs

• A more efficient warehouse operation that adapts as order volumes change

Why Choose Slot3D for Warehouse Slotting Optimization?

Slot3D gives 3PLs, distributors, and warehouse operators the tools to:

• Reduce labor costs with optimized pick paths

• Visualize SKU performance with interactive heat maps

• Implement reslotting frequency strategies for continuous improvement

• Scale operations to meet growing customer demand

  
  

Whether you’re a 3PL, distributor, or manufacturer, Slot3D delivers proven results in warehouse efficiency, cost savings, and operational visibility.

Ready to reduce your labor costs?

Learn how Slot3D can transform your warehouse and implement the slotting plan that optimizes your operations. Schedule a Demo or Learn more