SKU Velocity

The frequency with which a specific SKU is picked over a defined period, used to segment inventory for storage slotting and automation prioritization.

SKU velocity classifies inventory by how often individual items are picked relative to the total SKU count. High-velocity SKUs - typically the top 10-20% of the assortment accounting for 70-80% of picks - are the primary candidates for automation-accessible storage locations and ergonomic slotting. Low-velocity SKUs can tolerate less accessible storage positions because their retrieval frequency does not significantly impact total throughput. SKU velocity analysis is foundational to warehouse automation architecture decisions: a GTP or shuttle system is most efficient when high-velocity SKUs fill the fastest-access positions. Velocity profiles also shift over time as product mix and demand patterns change, which means slotting decisions require periodic recalibration rather than a one-time setup.

Related terms: goods-to-person-system · throughput-density · pick-rates