Rex says
Money math without the spreadsheet headache. Plug in your numbers and I'll show you exactly where the dollars land.
Try a scenario
Click to load — tweak from there.Inputs
Result
Annual labor savings
$85,800
Payback period
4.9
Labor hours saved per year
3,575
Labor hours saved per day
13.75
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How to use this
- 1Enter current avg travel time per pick (sec).
- 2Enter projected avg travel time per pick (sec).
- 3Enter total picks per day.
- 4Enter working days per year.
- 5Enter burdened hourly wage ($).
- 6Enter one-time re-slotting project cost ($).
- 7Read your annual labor savings on the right — it updates as you type.
- 8Hit Share to keep the scenario or send it to someone.
About this calculator
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.
Worked example
Using the values the calculator loads with:
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 $
Results
- Annual labor savings: $85,800
- Payback period: 4.9
- Labor hours saved per year: 3,575
- Labor hours saved per day: 13.75
What each field means
Inputs
- Current avg travel time per pick (sec)
- The current avg travel time per pick used in the calculation, measured in sec. Starts at 28 sec so you have a working example on load.
- Projected avg travel time per pick (sec)
- The projected avg travel time per pick used in the calculation, measured in sec. Starts at 17 sec so you have a working example on load.
- Total picks per day
- The total picks per day used in the calculation. Starts at 4500 so you have a working example on load.
- Working days per year
- The working days per year used in the calculation. Starts at 260 so you have a working example on load. Accepted range: 1–365.
- Burdened hourly wage ($)
- The burdened hourly wage used in the calculation, measured in $. Starts at 24 $ so you have a working example on load.
- One-time re-slotting project cost ($)
- The one-time re-slotting project cost used in the calculation, measured in $. Starts at 35000 $ so you have a working example on load.
Results
- Annual labor savings
- Returned as a money amount in US dollars and shown as the headline result. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Payback period
- Returned as a decimal number. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Labor hours saved per year
- Returned as a whole number. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Labor hours saved per day
- Returned as a decimal number. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
FAQ
How do I measure current travel time per pick?
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.
What drives the projected travel time down?
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.
Is this savings realistic or optimistic?
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.
Does this replace a full slotting software investment?
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.
Accuracy and 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.
Related tools
Cite this calculator
Writing about this topic? Grab a citation — every link helps keep these tools free.
RevenueLab. (2026). Slotting Travel Savings Calculator. Retrieved from https://www.revenuelab.fyi/toolbox/slotting-travel-savings
<p>Source: <a href="https://www.revenuelab.fyi/toolbox/slotting-travel-savings" target="_blank" rel="noopener">Slotting Travel Savings Calculator — RevenueLab</a> (2026).</p>
Source: [Slotting Travel Savings Calculator — RevenueLab](https://www.revenuelab.fyi/toolbox/slotting-travel-savings) (2026).