Black Friday, Cyber Monday, the holiday shopping rush, and the back-to-school season. These are some of the periods when warehouses face heightened volumes in orders.
Delays, stockouts, mis-picks, and space constraints become more common as order volumes spike. For warehouse managers, the challenge is maintaining performance and fulfilling orders on time, all while dealing with limited resources and little room for error.
These peak periods demand preparation.
Some companies respond with investments in automation or infrastructure overhauls. Others take a more flexible, cost-effective approach: making incremental, data-driven adjustments, especially in areas like slotting, picking, and storage optimization.
Research shows that slotting and layout optimizations alone can reduce picker travel distances by 20% to 70%, depending on the warehouse layout and order profiles.
And the more cost-effective way does not need to compromise on efficiency increase, since high gains can be achieved through optimization. And it does not need to be difficult or time-intensive, but rather just looking at current warehouse flows and identifying improvements on the warehouse floor.
In this article, overview of tips for preparing for warehouse peak seasons.
Learn From Previous Seasons
Looking at past busy seasons can help you plan better for the future. By analyzing historical data, managers can predict which items will be in demand and estimate the volume of orders expected.
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Analyze Past Performance: Review past sales trends, identify frequently ordered items, and assess picking mistakes or bottlenecks.
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Optimize Slotting: Place high-demand or fast-selling items closer to pickers to reduce walking time.
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For example, placing popular products at the ends of aisles or near packing areas ensures faster access.
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Seasonal products can be repositioned as demand fluctuates, further increasing picking efficiency.
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Prepare for Increased Labor Requirements
Peak seasons typically mean hiring temporary workers to meet the higher demand.
However, integrating new staff can sometimes slow down operations if they aren’t familiar with the warehouse layout or picking processes.
For this reason, optimizing pick paths is an important factor for improving productivity across the board. By organizing inventory and establishing clear, efficient routes, workers spend less time walking and more time fulfilling orders.
Another effective strategy is batch picking, where employees gather items for multiple orders simultaneously. This reduces the need for multiple trips and minimizes downtime.
Note on Batch vs. Cluster Picking: Batch picking reduces walking but may add sorting steps later. Read more about the trade-offs between batch and cluster picking here.
Batch picking works best for full cases or consolidated orders. However, in peak periods, additional handling can negate time savings. Cluster picking may be simpler and faster, especially when space is limited.
Assess Warehouse Layout
Peak seasons often require maximizing every inch of available warehouse space.
Slotting is one technique that can help warehouse managers optimize this resource.
Slotting involves categorizing items based on how quickly they sell, allowing managers to place high-demand items in easily accessible locations.
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Re-slotting & Housekeeping: A Continuous process that ensures popular products remain within easy reach, while slower-moving items are placed in less convenient spots. Regular replenishment of picking areas and keeping aisles clear for safe and efficient movement are crucial components of optimizing space.
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Group Frequently Ordered Items Together: Reduces walking distances and speeds up the picking process.
Before the peak season hits, managers should test the warehouse layout to identify potential inefficiencies.
Conducting walk-throughs or simulations can reveal bottlenecks, space utilization issues, and other inefficiencies that could hinder operations.
Small adjustments made during these tests can lead to significant improvements in efficiency and throughput.
Testing Warehouse Layouts and Optimizing Operations
Testing different layouts and operational strategies before the peak season can be insightful for many warehouse teams.
Running "what-if" scenarios or using data-driven software tools can help warehouse managers make informed decisions about layout adjustments and operational changes.
For instance, visualizing different configurations in a risk-free environment can highlight issues like bottlenecks, excessive walking distances, or aisle congestion that can hinder performance during peak times.
By simulating different scenarios, warehouse managers can explore the impact of various changes, such as adjusting product locations or reconfiguring aisles, to see how these adjustments could affect overall efficiency.
Using optimization algorithms, it’s possible to assess how adjustments will impact key performance metrics like picking times and walking distances, enabling managers to make data-backed decisions.
Optimize First, Automate Later
Automation can seem like the quick fix for many warehouse challenges, but the smarter and more cost-effective approach often starts with optimization.
Instead of jumping straight into expensive robotic systems, warehouse managers should first focus on optimizing workflows.
Optimizing pick paths, slotting, and inventory management can lead to substantial efficiency gains, often without the need for heavy investments in physical automation.
This can be achieved through smart software that analyzes warehouse data and suggests improvements to current processes. Once these optimizations have been implemented, managers can assess whether further automation is needed to address any remaining challenges.
One such approach to optimization involves the use of a digital twin for warehouse operations. A warehouse digital twin creates a virtual model of the physical warehouse, offering a real-time visual representation of operations. This digital twin can be used to visualize workflows, analyze key performance metrics, and run simulations of different layouts or operational strategies without the risk of disrupting actual warehouse activities.
For example, through the digital twin’s capabilities, warehouse teams can get a clear picture of workflows, picking routes, and space utilization. They can track key metrics such as picking times and walking distances and then run simulations to test the impact of changes—like adjusting slotting strategies or rearranging aisles—before committing to any changes on the warehouse floor.
Bottom Line
Preparing for warehouse peak seasons doesn't require major infrastructure overhauls or expensive automation systems. By taking a data-driven, incremental approach to optimizing processes such as slotting, pick paths, and space utilization, warehouse teams can get useful insights into what should be prioritized in preparation for peak periods.
The key is to start with optimization before considering automation. And with the help of tools like warehouse digital twins, managers can visualize, analyze, and test changes in a controlled environment before making decisions that impact the physical warehouse. This proactive approach ensures that warehouses are well-prepared for the inevitable surge in demand that comes with peak seasons.
Don’t wait until the surge hits—start preparing now! Simulate different layout changes to ensure you're ready for peak demand. Learn more.