{
  "slug": "slotting-travel-savings",
  "title": "Slotting Travel Savings Calculator",
  "heading": "Slotting Optimization Travel Savings Calculator",
  "category": "financial",
  "url": "https://www.revenuelab.fyi/toolbox/slotting-travel-savings",
  "summary": "Estimate labor dollars saved by re-slotting fast movers closer to pack.",
  "description": "Travel time, not the physical act of picking, is usually the largest component of pick labor time, often 50-65% of a picker's shift. Slotting optimization moves your highest-velocity SKUs closer to pack-out and shipping, cutting the average travel distance per pick. This calculator estimates the annual labor savings from a proposed re-slotting project by comparing current average travel time per pick against a projected time after re-slotting, multiplied by daily pick volume and burdened labor cost. It's the standard way to build a business case for a slotting project or a warehouse execution system upgrade, because the savings are almost always labor dollars, not capital, which makes the payback period short and the case easy to sell internally.",
  "formula": "Annual savings = (Current travel sec/pick − Projected travel sec/pick) × picks/day × workdays/year × (burdened wage ÷ 3600).",
  "dateModified": "2026-09-30",
  "run_url": "https://www.revenuelab.fyi/api/public/calc?tool=slotting-travel-savings",
  "inputs": [
    {
      "id": "currentTravel",
      "label": "Current avg travel time per pick",
      "kind": "number",
      "hint": null,
      "default": 28,
      "unit": "sec",
      "min": 1,
      "max": null
    },
    {
      "id": "projectedTravel",
      "label": "Projected avg travel time per pick",
      "kind": "number",
      "hint": null,
      "default": 17,
      "unit": "sec",
      "min": 1,
      "max": null
    },
    {
      "id": "picksPerDay",
      "label": "Total picks per day",
      "kind": "number",
      "hint": null,
      "default": 4500,
      "unit": null,
      "min": 1,
      "max": null
    },
    {
      "id": "workdays",
      "label": "Working days per year",
      "kind": "number",
      "hint": null,
      "default": 260,
      "unit": null,
      "min": 1,
      "max": 365
    },
    {
      "id": "wage",
      "label": "Burdened hourly wage",
      "kind": "number",
      "hint": null,
      "default": 24,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "projectCost",
      "label": "One-time re-slotting project cost",
      "kind": "number",
      "hint": null,
      "default": 35000,
      "unit": "$",
      "min": 0,
      "max": null
    }
  ],
  "outputs": [
    {
      "id": "annualSavings",
      "label": "Annual labor savings",
      "format": "currency",
      "hint": null,
      "primary": true
    },
    {
      "id": "paybackMonths",
      "label": "Payback period",
      "format": "decimal",
      "hint": null,
      "primary": false
    },
    {
      "id": "annualHoursSaved",
      "label": "Labor hours saved per year",
      "format": "number",
      "hint": null,
      "primary": false
    },
    {
      "id": "savedHoursPerDay",
      "label": "Labor hours saved per day",
      "format": "decimal",
      "hint": null,
      "primary": false
    }
  ],
  "worked_example": {
    "inputs": [
      "Current avg travel time per pick: 28 sec",
      "Projected avg travel time per pick: 17 sec",
      "Total picks per day: 4500",
      "Working days per year: 260",
      "Burdened hourly wage: 24 $",
      "One-time re-slotting project cost: 35000 $"
    ],
    "outputs": [
      "Annual labor savings: $85,800",
      "Payback period: 4.9",
      "Labor hours saved per year: 3,575",
      "Labor hours saved per day: 13.75"
    ]
  },
  "how_to": {
    "title": "How to use this",
    "steps": [
      "Enter current avg travel time per pick (sec).",
      "Enter projected avg travel time per pick (sec).",
      "Enter total picks per day.",
      "Enter working days per year.",
      "Enter burdened hourly wage ($).",
      "Enter one-time re-slotting project cost ($).",
      "Read your annual labor savings on the right — it updates as you type.",
      "Hit Share to keep the scenario or send it to someone."
    ]
  },
  "scenarios": [
    {
      "name": "Conservative",
      "description": "Lower-end numbers — what if things land soft?",
      "values": {
        "currentTravel": 17,
        "projectedTravel": 10,
        "picksPerDay": 2700,
        "workdays": 156,
        "wage": 14.399999999999999,
        "projectCost": 21000
      }
    },
    {
      "name": "Typical",
      "description": "Defaults — the most common real-world setup.",
      "values": {
        "currentTravel": 28,
        "projectedTravel": 17,
        "picksPerDay": 4500,
        "workdays": 260,
        "wage": 24,
        "projectCost": 35000
      }
    },
    {
      "name": "Ambitious",
      "description": "Higher-end numbers — what if things really pop?",
      "values": {
        "currentTravel": 45,
        "projectedTravel": 27,
        "picksPerDay": 7200,
        "workdays": 365,
        "wage": 38.400000000000006,
        "projectCost": 56000
      }
    }
  ],
  "limitations": [
    "Results are estimates before tax, fees, and inflation unless an input explicitly covers them.",
    "Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.",
    "This is educational maths, not financial advice. Check anything contractual with the lender or your accountant."
  ],
  "faq": [
    {
      "q": "How do I measure current travel time per pick?",
      "a": "Time-study a representative sample of pick tours with a stopwatch or pull travel-time data from a WMS/WES if you have one instrumented for it. Subtract the time spent physically picking (grabbing, scanning, placing) from total tour time to isolate travel. A day-long sample across morning and afternoon shifts is usually enough to get a defensible average."
    },
    {
      "q": "What drives the projected travel time down?",
      "a": "Three levers: moving A-velocity SKUs to golden zone locations near pack-out, tightening slot assignments so complementary SKUs that ship together sit near each other, and eliminating cross-aisle travel by consolidating a SKU into fewer locations. ABC velocity slotting alone typically cuts travel time 15-30% without any capital investment."
    },
    {
      "q": "Is this savings realistic or optimistic?",
      "a": "Use time-study data, not vendor claims, for your projected travel time input. A conservative approach is to project based on a facility of similar size and pick density that has already completed a slotting project, discounted by 20% for execution risk. Most re-slotting projects that use real data land within 10% of their projected savings."
    },
    {
      "q": "Does this replace a full slotting software investment?",
      "a": "No — this estimates the value of a one-time manual re-slotting exercise. Ongoing slotting optimization software adds continuous re-slotting as SKU velocity shifts seasonally, which compounds the savings shown here but comes with a subscription cost that needs its own ROI calculation."
    }
  ],
  "related": [
    "https://www.revenuelab.fyi/toolbox/pick-rate-labor-cost",
    "https://www.revenuelab.fyi/toolbox/cubic-utilization",
    "https://www.revenuelab.fyi/toolbox/wave-picking-efficiency"
  ],
  "license": "CC-BY-4.0",
  "citation": "RevenueLab — Slotting Travel Savings Calculator (https://www.revenuelab.fyi/toolbox/slotting-travel-savings)"
}