WMS, Warehouse Labor & Fulfillment worked example

Travel Time Savings at 81% realized travel reduction: a worked example

What does the result look like when realized travel reduction reaches 81%? The full calculation is worked below with real intermediate numbers. A warehouse manager evaluating a slotting or pick-path optimization project sizes the labor savings before committing to the re-slot.

The inputs for this scenario

  • Picks rerouted per shift: 4,000 picks (unchanged)
  • Labor cost per pick saved: 0.18 $/pick (unchanged)
  • Realized travel reduction: 81 % (raised for this scenario; the documented default is 70)
  • Slotting setup fee: 1,200 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Total savings = picks rerouted x labor cost per pick saved x realized reduction% + slotting setup fee) to the inputs above produces each figure below.
  • At this operating point the engine returns 1,783 $ for total travel time savings cost, the number this scenario is built around.
  • At this operating point the engine returns 0.45 $ / piece for travel time savings cost per unit.
  • At this operating point the engine returns 583 $ for variable travel time savings cost.
  • At this operating point the engine returns 1,200 $ for fixed travel time savings adder.

How this compares with the baseline

  • Against the tool's baseline example, where realized travel reduction sits at 70% and the headline result is 1,704 $, this scenario comes in 4.65% above the baseline at 1,783 $.
  • A figure at this level is achievable when realized travel reduction is genuinely sustained, not just peaked for a shift. It credits only travel labor at a flat per-pick rate; it ignores congestion, replen interference, and the fact that realized reduction usually decays as slotting drifts out of alignment over the year.

Results at a glance

  • Total travel time savings cost: 1,783 $ (headline result)
  • Travel time savings cost per unit: 0.45 $ / piece
  • Variable travel time savings cost: 583 $
  • Fixed travel time savings adder: 1,200 $

Run it with your numbers

  • Every input above is editable in the live Travel Time Savings calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.