Sphere Partners

Case Study

AI Slotting Optimization

Overview

A U.S.-based e-commerce fulfillment provider wanted to boost operational throughput and improve order accuracy without costly infrastructure upgrades. Their existing warehouse management system lacked real-time intelligence, forcing staff to work with static slotting layouts and inefficient pick routes. This led to excessive travel times, congestion in high-traffic aisles, and frequent order delays. Partnering with Sphere, the provider deployed an AI-powered slotting and pick path optimization solution that delivered measurable efficiency gains in weeks, not years.

Challenges

The fulfillment provider’s existing warehouse setup could not adapt quickly to changing demand patterns or operational bottlenecks. Static layouts, manual routing, and limited real-time oversight created inefficiencies that slowed order processing, increased labor costs, and impacted accuracy. Four main issues stood out:

SKU placement was only updated quarterly, ignoring seasonal demand changes and promotional spikes. High-demand products were often stored far from packing stations, forcing pickers to make long trips and slowing order fulfillment.

Pick routes were manually planned at the start of the day and rarely adjusted, even when priorities shifted. This caused unnecessary backtracking, increased congestion in certain aisles, and lowered overall productivity.

The layout and routing inefficiencies increased the likelihood of mispicks. Each error required rework, delaying shipments and pulling labor away from fulfilling new orders.

The WMS provided no ability to adjust slotting or routes during active shifts. Supervisors lacked data-driven tools to correct bottlenecks or respond quickly to operational disruptions.

Our Solution

Sphere designed and deployed an AI-driven optimization engine that integrated directly with the client’s WMS via APIs — no physical changes to the warehouse were required. The solution had three key components:

The AI continuously analyzed SKU velocity, product dimensions, order history, and demand forecasts to determine the best placement for each product in the warehouse. It weighed multiple factors, balancing reduced picker travel with efficient replenishment cycles, safety stock placement, and space utilization. High-volume SKUs were moved closer to packing areas while slow-moving items were relocated to peripheral storage. This reconfiguration reduced average picker travel time by double digits without disrupting the overall storage logic.

Using live order queues, congestion data, and workforce availability, the AI recalculated pick routes throughout the day. The routing engine applied graph optimization algorithms that factored in aisle traffic and order priority to find the fastest possible sequence of picks. When high-priority orders entered the system or certain aisles became congested, routes were updated instantly on handheld picker devices, keeping productivity levels high.

Sphere built an intuitive dashboard that provided supervisors with real-time visibility into slotting recommendations, pick path efficiency, and congestion alerts. The dashboard pulled data from barcode scanners, RFID checkpoints, and WMS order logs, enabling supervisors to approve AI-generated slotting adjustments or push updated routes to the floor with a single action.

The solution was connected via secure REST APIs, using encrypted data exchange to protect operational information. Integration was designed to cause zero downtime, and the pilot-to-rollout process was completed in just eight weeks.

Key Achievements

Reduced average travel distance per order.

Fewer mispicks and reduced rework.

Lowered labor costs per fulfilled order.

ROI achieved within three months of deployment.

Result

By deploying AI-powered slotting and pick path optimization, the fulfillment provider achieved measurable operational improvements without investing in new physical infrastructure. Real-time intelligence allowed the warehouse to adapt instantly to changing demand, improving speed, accuracy, and customer satisfaction.

Organizations around the world trust us

ideel
JFrog
Clearcover
91 Seconds
PHC
NextCapital
DigitalOcean
Enova
bp
Groupon
CreditNinja
Navy Pier
DoorDash
Gett
Experify
ideel
JFrog
Clearcover
91 Seconds
PHC
NextCapital
DigitalOcean
Enova
bp
Groupon
CreditNinja
Navy Pier
DoorDash
Gett
Experify

Hear from

our clients
Lee Ebreo

Lee Ebreo

VP of Engineering at Credit Ninja

These things would not have been achievable if we did not build our own in-house system and if we did not partner with Sphere to help us achieve our goals.

Selah Ben-Haim

Selah Ben-Haim

VP of Engineering at Prominence Advisors

Our experience with Sphere and their team has been and continues to be fantastic. We keep throwing new projects at them, and they keep knocking them out of the park (including the rescue of a project that was previously bungled by another vendor).

Ben Crawford

Ben Crawford

Senior Product Manager at Enova Financial

I would expect to be delighted. It's been a really positive experience, working with Sphere, and I would expect you to have the same.

Mark Friedgan

Mark Friedgan

CEO at CreditNinja

Sphere consistently prioritizes the needs of their clients, demonstrating both agility and teamwork. As an offshore team, they have been an integral part of our organization and we plan to continue growing with them.

René Pfitzner

René Pfitzner

Co-Founder at Experify

Sphere provided excellent full-stack development manpower to augment our team and help push our product forward. They are easy to work with, tech-savvy and proactive.

Bruce Burdick

Bruce Burdick

Chief Information Officer at Integra Credit

We've been working with Sphere and its excellent consultants since our founding. I've found that they are true partners in the success of our business.

Jemal Swoboda

Jemal Swoboda

CEO at Dabble

The resources and developers that Sphere Software provides are skilled and have the required technical expertise, but more importantly, they have helped us build a culture of excellence within our team.

Arthur Tretyak

Arthur Tretyak

Founder and CEO at IntegraCredit

With Sphere, we were able to migrate in half the time it would take to train an additional FTE… and for a fraction of the cost. Our experience with Sphere has been exceptional.

Lee Ebreo

Lee Ebreo

VP of Engineering at Credit Ninja

These things would not have been achievable if we did not build our own in-house system and if we did not partner with Sphere to help us achieve our goals.

Selah Ben-Haim

Selah Ben-Haim

VP of Engineering at Prominence Advisors

Our experience with Sphere and their team has been and continues to be fantastic. We keep throwing new projects at them, and they keep knocking them out of the park (including the rescue of a project that was previously bungled by another vendor).

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