Services · Storage Strategy

How the engine works.

From three WMS extracts to a fitted storage model in six stages. Every figure on this page is engine output for a fictional sample warehouse.

01

Three extracts. No IT project.

The engine reads flat files your WMS already produces. Two are required, one of a pair is required, and one is optional and adds the time-based views.

  • Item master Required

    SKU dimensions, weight, unit of measure, and case pack.Sample run: 6,500 rows

  • Inventory Required

    Every location with its dimensions and type, and the SKU and quantity it holds.Sample run: 11,129 rows

  • Volume or order lines One of two

    Units sold per SKU, either summarized or as dated order lines.Sample run: 5,777 SKUs summarized

  • Volume by day Optional

    Daily units per SKU. Adds seasonality, peak-day, and day-of-week views.Sample run: 859,143 rows

02

Every row accounted for.

Before anything is modeled, each table gets a quality pass. Rows that cannot be used are removed and listed with the reason. Rows that look wrong but are still usable are kept and flagged, so you can correct the source instead of finding the problem in the results.

Removed, with the reason

  • Duplicate location ID
  • Invalid location or SKU dimension
  • SKU missing from the item master
  • Duplicate SKU with mismatching dimensions
  • Invalid inventory quantity or sales days

Kept, and flagged

  • SKU name likely mangled into scientific notation
  • Mixed unit-of-measure values for one SKU
  • A dimension over 48 in, or every dimension at 1 in
  • Weight over 50 lb
  • Zero quantity or zero sales

Each table gets a summary of rows, SKUs, removed rows, and flagged rows that you review before the model runs.

03

Know the demand before you size the space.

The engine profiles demand and the catalog: how volume moves through the year and the week, how concentrated it is, and how inventory sits against velocity. SKUs are grouped into cube bins, AA through D, with summary metrics for each.

6AA
344A
2,016B
1,550C
2,195D

SKUs per cube bin · sample run

Fig. 01

The peak day ran 2.3 times the average.

The busiest day, Cyber Monday, moved 60,659 units. Peak-to-average sets how much headroom pickfaces need, so the model sizes to the demand you actually see, not the mean.

Line chart of total daily unit volume from June to December 2025, with the average and one standard deviation band marked
Storage Strategy Engine · daily unit volume · sample run Open full size
Fig. 02

35% of SKUs carry 80% of unit volume.

Concentration decides where pickface investment goes. The A band is where location size and position pay back.

Pareto curve of cumulative unit volume against cumulative share of SKUs, crossing 80% at 35% of SKUs
Storage Strategy Engine · SKU Pareto · sample run Open full size
Fig. 03

Inventory against velocity.

Each point is a SKU. Points high and to the left hold far more stock than they sell.

Log-scale scatter of each SKU's inventory cubic feet against daily sales velocity
Storage Strategy Engine · inventory vs. velocity · sample run Open full size
Fig. 04

Monday carries the most volume.

Share of weekly volume by day sets the rhythm for labor and replenishment.

Bar chart of share of unit volume by day of week, highest on Monday
Storage Strategy Engine · volume by day of week · sample run Open full size
04

Your rules, not a generic sort.

A handful of parameters drive the fit, and we set them with you. The starting days-on-hand values come from your own data: the average your current pickfaces already hold.

ParameterWhat it controlsSample run
Non-pallet days on handMinimum days of demand a bin or carton-flow pickface must hold13.0 days
Pallet days on handThe same rule for pallet pickfaces23.9 days
Maximum utilizationHow full a pickface or reserve location may be filled100% / 100%
Minimum unitsA floor on units per location, so slow movers do not get tiny slots12 units
Ceiling heightClear height for stacking bays and computing footprint30 ft
Sales and inventory growthMultipliers to test future demand and stock levels1.0× / 1.0×
Location librariesWhich pickface, reserve, and bay types the fit may use: your current set, our library of about 6,500 pickface and 150 reserve types, both, or a custom uploadCurrent set, 24 bay types

Comparing futures is a rerun, not a new project. Change growth, a days-on-hand policy, or the rack set, and the whole model updates.

Your own racking can replace the default bay types: describe it in Bay Creator in the client portal.

05

Every SKU gets a home. Every location gets a bay.

Each SKU is assigned the pickface that holds its days-on-hand requirement within the utilization cap. Remaining inventory goes to reserve, and locations are packed into bays. Every result is compared with your current layout.

  • −34%Location cube203,192 → 134,987 cu ft
  • −27%Location footprint4,956 → 3,637 sq ft
  • 73%Average pickface utilizationUp from 38% today
  • 886Bays to buildAcross six bay types
Fig. 05

Pickfaces run about 30% full. The fit takes most types past 70%.

Each location type is shown twice: what the current slotting achieves, and what an optimal fit would. The gap is recoverable space.

Paired box plots comparing current and optimal-fit utilization for each pickface location type
Storage Strategy Engine · pickface utilization · sample run Open full size
Fig. 06

Which location types to add and retire.

Current count against fitted count for every pickface type.

Grouped bar chart of current and fitted counts by pickface location type
Storage Strategy Engine · pickface counts · sample run Open full size
Fig. 07

886 bays across six types.

Locations packed into bay types give a bay count and loaded footprint for the building.

Bar chart of fitted bay counts by bay type, pickface and reserve
Storage Strategy Engine · bay counts · sample run Open full size
06

A model you can take into the capital meeting.

You leave with the evidence and the working files behind it, ready for operations, engineering, and finance.

Fig. 08

Bay layout, exported to CAD.

Fitted bays are laid out and exported as a DXF drawing your engineers can open and edit. Shown here redrawn from the sample run's file.

Plan view of fitted bays in rows, coloured by bin shelving, carton flow, pallet, and selective rack
Storage Strategy Engine · bay layout (DXF), redrawn · sample run Open full size
  • Report

    Every figure with written commentary generated from your numbers.

  • SKU-level workbook

    One row per SKU with its current and fitted location, plus pickface, reserve, bay, and overall summaries.

  • CAD bay layout

    A DXF drawing of the fitted bays.

  • Definitions and parameters

    Column definitions for every table, and the exact settings behind the run so any result can be reproduced.

Figures are engine output from a baseline run on a fictional warehouse with generated SKUs, sales, and stock, reproduced as the engine draws them. The bay layout is redrawn from the engine's DXF file.