How to Organize Your Vertical Lift Module (VLM) Inventory Like a Pro

If you’ve invested in a Vertical Lift Module (VLM), you already know it’s a game-changer for space savings and productivity. 

But here’s the catch: if your VLM isn’t organized correctly from day one, you’re leaving serious efficiency on the table. 

From practical slotting strategies to the biggest mistakes to avoid, this article breaks down Donald’s top tips for organizing your VLM like a pro, so you can start boosting your picking speed, improving your inventory accuracy, and making the most of every inch of your vertical space. 

Ready to get organized? 

Let’s dive in. 

Start by Evaluating Your Current Inventory 

Before you load a single part into your Vertical Lift Module, stop and take a good look at your current inventory setup. According to Donald Luchau, this step is absolutely essential, and too often skipped. 

“The first thing I tell customers is to organize and count their current inventory before the move,” says Luchau. “The better it’s organized, the quicker parts get transferred. Counting parts is the most time-consuming part of a parts move.” 

You can think of it a bit like packing for a cross-country move. Would you toss everything into boxes without taking stock of what you actually have? Of course not. The same logic applies to organizing your VLM inventory. 

Taking time up front to clean house, verify counts, and tidy up bin locations will set you up for faster implementation and fewer headaches down the line. 

This prep work also helps you make smarter decisions about how to group items by size, weight, or movement frequency once they’re in the VLM. 

If you skip this step, you risk carrying over clutter, redundancy, or worse: inaccurate inventory data that disrupts picking efficiency. 

3 Best Practices for Organizing Inventory Inside Your VLM 

Once you have a handle on your inventory, and it’s all counted and cleaned up, you can start thinking about how to organize it inside the VLM.

According to Donald Luchau, there are a few proven best practices that can make a real difference. Not just in your storage capacity, but in your team’s daily productivity while using the machine. 

1. Organize Your Inventory by Height

One of the simplest ways to unlock extra storage potential in your VLM is to organize your inventory in trays by their height. 

Why? 

VLMs like the Kardex Shuttle can come equipped with smart sensor technology that measures the height of each shelf as it’s returned to the machine, and then finds the optimal place for it based on that height. 

If you have one tall item among a sea of smaller SKUs, that will affect how it’s stored internally. 

Grouping similarly-sized items together will allow you to compactly store your trays and increase your total storage density. 

2. Use Temporary or Multiple Locations

Flexibility is key when it comes to fast-moving SKUs. This is especially true if you’re dealing with seasonal fluctuations, high-turnover SKUs, mega-sales, and viral products. Instead of locking every part into a single, permanent spot, you can consider using temporary or multiple locations to keep the VLM fluid and responsive to your changing needs. 

“Temporary or multiple locations let you adapt to real-time conditions,” Luchau explains. “It’s especially helpful when you’re still learning how the system flows.” 

What does this mean in practice? 

Luchau explains. Let’s say you’re onboarding a new VLM. During the first few weeks, your team is still learning the software, the flow of parts, and how long it takes to pick and replenish items. Rather than spending time slotting every SKU into a “forever” home, temporary storage lets you move quickly, storing items wherever there’s space and letting the system track those locations for you. 

Later, once you’ve gathered usage data, you can reorganize based on velocity and demand. 

Here are a few practical applications of this approach: 

• Try storing related SKUs together: If items are frequently picked together (think kits, assemblies, or commonly bundled parts), placing them on the same tray, or in nearby trays, can reduce travel time and increase picking efficiency. 

• Try staging fast-movers near the access point: High-velocity SKUs can be temporarily slotted closer to the VLM access opening for quicker retrieval. As order patterns shift, you can rotate other fast-movers into those spots. 

• Consider buffering your overflow stock: If you receive a large shipment and your primary bin locations are full, multiple locations allow you to stage excess inventory temporarily without halting operations or overloading your pick zones. 

• Consider supporting your parallel workflows: Need to receive, restock, and pick at the same time? Having flexible storage spots prevents one task from blocking another. It’s a smart way to avoid bottlenecks during high-volume periods. 
  
  

Using temporary or multiple locations doesn’t mean sacrificing control of your inventory. It means trusting your software to do the tracking, while you focus on performance. With a system like Kardex Power Pick, the VLM knows exactly where every item is, even if it exists in more than one place. 

Combining your Kardex Shuttle with a smart system like Kardex Power Pick means your machine is consistently working to optimize your storage in the background so your team can focus on what they do best: fulfilling orders and picking the right parts. 

And that brings us to our next point: 

3. Let your VLM be One Location in Your DMS

Luchau's advice? Treat your entire VLM as a single location within your warehouse management system (WMS) or dealer management system (DMS). Why? This hack can help you simplify your inventory tracking, especially when paired with an inventory management system (IMS) like Kardex Power Pick System. 

“Have the Kardex system be one location in your DMS. It reduces confusion and makes it easier to manage your inventory from a system level.” 

Instead of trying to micromanage where every item goes, you let the software—and the logic you’ve built do the heavy lifting. 

How Often Should You Reevaluate Your VLM Inventory Layout? 

Great question. One of the most common misconceptions about VLMs is that once they’re set up, they run on autopilot forever. While that might work for low-volume or highly stable operations, most businesses, especially those with shifting inventory or seasonal cycles, will need to revisit their layout a bit more regularly. 

“The timing depends on their business,” Luchau explains. “If they’re set up correctly from the start, they might not need to make changes. But for customers with a high turnover of different parts or stocking levels, it could be every 3 to 6 months.” 

While your VLM is going to be a significantly more streamlined way to manage your inventory than traditional shelves and bins, you should treat it as a living, breathing part of your inventory management process. 

A pro tip? Rather than waiting for problems to snowball, consider adding a regular VLM audit to your quarterly or biannual warehouse maintenance plan. If nothing needs to change, great. You’ve confirmed your setup is working. 

But if you spot opportunities to improve, you’ll be able to make some small adjustments before they turn into big issues. 

Common Mistakes When Organizing Inventory in Your VLM 

Even the most well-intentioned VLM setup can go sideways if the wrong assumptions are baked in from the start. According to Donald Luchau, many of the missteps he sees come down to mindset. 

“The biggest mistake? They think the machines are the same as the racking in their warehouse,” says Luchau. “They try to micromanage the inventory and don’t trust the software to control where the parts go.” 

Here are the most common pitfalls when organizing your VLM inventory, and how to steer clear of them: 

1. Don't Treat Your VLM Like Static Shelving

You are probably used to organizing inventory on static shelves. But remember. A VLM isn’t just vertical shelving. It’s an automated system designed to do the thinking for you. Trying to recreate your old racking layout inside a VLM often leads to wasted space, inefficient picking routes, and an underutilized machine. 

Instead: Let go of the “aisle-and-bin” mindset. Embrace dynamic slotting and use software tools like the Kardex Power Pick System to manage part placement based on velocity, size, or demand. 

2. Don't Micromanage Your Inventory Locations

It’s tempting to dictate exactly where every part goes, especially when transitioning from a manual setup. But this can backfire, especially as your inventory levels shift. 

Instead, remember to trust the system. Use rules and categories to guide part placement, but allow the software to assign locations within those parameters. You’ll save hours of manual labor and reduce errors in the long run. 

3. Don’t Ignore the Software’s Full Capabilities

If your team is only using a fraction of what the Kardex Power Pick System can do, you’re likely leaving efficiency on the table. Many users skip the optimization tools out of unfamiliarity, not realizing how much easier they can make day-to-day operations. 

Instead, invest time in training or bring in a Kardex specialist to set up the system right the first time. As Luchau puts it: 

“Have someone spend the time to learn the system.” 

Our team is happy to offer on-site training as needed. 

4. Don't Wait Too Long to Reorganize

Sometimes the signs of inefficiency are subtle. Think: slightly slower pick rates, a growing number of mis-picks, or bins starting to feel a little cramped. But if you ignore them for too long, the consequences add up fast. 

Instead? Monitor your KPIs and be proactive. Schedule regular reviews of your VLM layout and use system data to drive small, ongoing improvements. 

By avoiding these common pitfalls, you’ll set your team up for long-term success—and actually get the ROI you expected when you invested in your VLM. 

Inventory Management System Software for VLMs 

We’ve said it before, and we’ll say it again. Having the right tools is key to optimizing your VLM inventory on an ongoing basis. Data is essential to understanding how your inventory is accessed and how it’s stored in the machine. 

But you don’t have to have it all figured out right at the start. 

In fact, Luchau sometimes recommends a wait-and-optimize approach. 

“At the start, if you have accurate sizing data, then stocking levels and velocity can be helpful to slot the machines. If you don’t have accurate data, just let the system run for a while. You’ll gather what you need and use tools in Power Pick to optimize later.” 

It turns your VLM into a self-optimizing storage system, rather than a static cabinet of drawers. 

And with that data comes a wealth of new business information.  

Instead of relying on outdated reports or tribal knowledge, warehouse managers can use actual system data to answer questions like: 

• Are we storing our fastest-moving parts in the most accessible areas? 

• Which SKUs are wasting prime space but are rarely picked? 

• Where is picking time being lost? And how can we fix it? 

And here’s the real kicker: the more you use the system, the smarter it gets.  

Over time, Kardex Power Pick becomes a goldmine of operational insight that you can use to refine everything from pick paths to labor allocation. 

What are the Benefits of a Well-Organized VLM? 

When it comes down to it, a well-organized VLM has benefits across the board. 

“Better organization means parts are easier to find and access,” says Donald Luchau. “Picking is faster, you don’t need as many people, and you eliminate a lot of safety risks that come with traditional shelving.” 

Here’s what a well-optimized VLM delivers: 

1. Faster Picking & Improved Accuracy

When SKUs are slotted by size, demand, and frequency, and the system brings the part directly to the operator, pick times go down dramatically. There’s no hunting, no walking, and no second-guessing. 

Combined with barcode scanning and guided picking, many warehouses see picking accuracy shoot up to 99% or higher. 

Organizing materials efficiently inside your VLM doesn’t just improve your picking, it also sets the stage for smarter, more streamlined packing. When SKUs are stored with packing in mind (like grouping by size, fragility, or shipping method), it’s easier for downstream systems, like Packing Control Systems (PCS),  to make faster, more accurate decisions. Together, smart storage and smart packing help reduce waste, control costs, and improve order flow from pick to ship.

2. Reduced Labor Requirements

VLMs are often introduced to improve throughput. But the real win is what happens with your workforce. When one or two people can do the job of five, you free up team members for other roles, reduce overtime, or avoid hiring during peak season. 

This is especially important in industries facing skilled labor shortages or tight margins. 

3. Better Space Utilization

A properly slotted VLM uses vertical space so efficiently that many customers reduce their storage footprint by up to 80%. But this only happens when items are organized by height and density (not just stuffed in randomly). 

It’s not just about fitting more parts; it’s about fitting the right parts in the right way. 

4. Improved Ergonomics and Safety

No more ladders, forklifts, or tight aisles. With goods-to-person delivery and adjustable tray heights, operators work at a comfortable level, reducing strain and the risk of injury. 

For facilities focused on safety and ergonomics (or compliance), this is a big plus. 

Don’t Just Use Your VLM. Master It.  

A Vertical Lift Module is one of the smartest investments you can make for your warehouse. But as Donald Luchau reminds us, the real value doesn’t come from simply having the machine. It comes from using it to its full potential. 

Whether you’re new to VLMs or have been running them for years, there’s always room to optimize. 

If you’re unsure whether your VLM is performing at its best, or if you’re preparing for a new install or expansion, Kardex Remstar offers complimentary site visits to assess your current layout, inventory strategy, and software setup. 

It’s a no-obligation way to identify opportunities for: 

• Faster picking 

• Better space utilization 

• Smarter slotting strategies 

• Reduced labor and improved safety 

Reach out to schedule your free consultation and get personalized recommendations for organizing your VLM like a pro.