How to Calculate Warehouse Bin Velocity

Written By Anthony Knepfle

Understanding what moves fast — and what doesn’t — is the key to maximizing efficiency in any warehouse.
At INVEX, we use bin velocity to turn static inventory data into actionable insight, helping operations teams identify high-movement items, eliminate wasted travel, and reclaim capacity.

🔍 What Is Bin Velocity?

Bin velocity measures how often items in a storage location are picked or replenished within a specific time frame.
It’s one of the most revealing indicators of warehouse efficiency — showing which bins earn their space and which ones slow you down.

  • Fast bins = high demand, frequent picks

  • Slow bins = wasted footsteps, underutilized locations

When tracked properly, bin velocity becomes the foundation for layout optimization, slotting strategy, and labor efficiency.

📊 How to Calculate Bin Velocity

You don’t need a complex system to start — just reliable pick data.

  1. Collect pick data:
    Count the total number of picks per SKU (or bin) over a given period — weekly or monthly.

  2. Divide by time:
    Bin Velocity = Total Picks ÷ Number of Days

  3. Rank your bins:
    Sort bins from fastest to slowest. High-velocity bins belong closer to pick faces and travel paths; low-velocity bins can move to less-accessible areas.

Example:
If a SKU is picked 120 times in 30 days, its bin velocity is 4 picks per day — making it a prime candidate for front-line placement.

⚙️ How INVEX Automates This Process

Manual bin velocity tracking is time-consuming and often inconsistent. That’s where XactStock comes in.
INVEX’s XactStock platform automates velocity analysis and visualizes results instantly — combining:

  • Live data extraction from WMS or ERP systems

  • Real-time slotting recommendations

  • Visual dashboards showing fast vs. slow bins

  • Actionable ROI metrics tied to layout changes

The result: measurable time savings, reduced travel distance, and up to 30 % more usable warehouse capacity — without adding square footage.

📈 From Insight to Impact

Bin velocity isn’t just a number — it’s a blueprint for smarter design and stronger throughput.
By combining analytics with real-world warehouse logic, INVEX turns movement data into meaningful change.

🔗 Learn More

Ready to optimize your warehouse?
➡️ Visit invex-us.com
➡️ Follow INVEX on LinkedIn for automation insights.

Anthony Knepfle https://invex-us.com