There are many processes and systems involved in the supply chain, that ensure that products are received, shipped, and arrive at your customers in a timely manner. One common (and critical) process is order picking, which involves retrieving products from warehouse shelves to fulfill customer orders. While this task might seem simple enough in nature, it’s actually a complex operation that plays a vital role in a business’s overall efficiency and customer satisfaction.
Whether you’re an e-commerce giant shipping hundreds or thousands of packages daily, or a local business fulfilling online orders, order picking is the backbone of an efficient inventory-based business. This article will do a deep dive into order picking and will explain the order picking process, as well as different methods of it.
What is Order Picking?
Order picking is the process of selecting and gathering items from a warehouse to fulfill customer orders. It involves the retrieval of the correct products in the right qualities from their storage locations, and preparing them for shipment. Order picking is a fundamental part of the order fulfillment process, with studies showing it can consume about 55% of a facility’s total labor, and directly impacts the efficiency and accuracy of a supply chain.
The order-picking process typically consists of several steps, such as:
- Receiving orders: Orders are received from customers through various channels such as a business website or over the phone. These orders are processed and are typically entered into the warehouse management system and/or inventory management software.
- Retrieving items: Warehouse workers, known as pickers, locate and collect the items specified in the orders.
- Preparing items for shipping: After the items are picked, they are packed securely and labeled for shipment. This step might also include combining items from multiple orders.
Accurate, timely order picking isn’t just about collecting items from shelves: it involves strategic planning, organization, and execution.
Importance of Order Picking Efficiency
Efficient order picking directly impacts different aspects of an inventory-based business and its supply chain, from operational costs to customer satisfaction. Here are some key reasons why efficient order picking is so important:
1. Enhances customer satisfaction
Top-tier order picking ensures that customers receive their orders accurately and promptly. Mistakes in order picking, such as sending the wrong item or incorrect quantities, can lead to customer dissatisfaction, returns, and negative reviews. By improving order-picking accuracy, businesses can enhance customer loyalty and reputation, leading to repeat businesses and a positive reputation. Keep in mind that 33% of US shoppers say they’ll consider switching brands after a single poor instance of customer service.
2. Increases warehouse productivity
Order picking is one of the most labor-intensive activities in a warehouse. By streamlining this process, warehouses can boost warehouse productivity, because efficient order picking reduces the time workers spend searching for items, allowing them to fulfill orders in less time.
3. Reduces operational costs & waste
Inefficient order picking can lead to higher operational costs due to wasted time, labor, and resources. By implementing efficient order-picking methods and technologies, businesses can minimize these costs & waste.
4. Improves inventory management
Accurate order picking contributes to better inventory management. When items are picked and recorded accurately, it ensures that inventory levels are updated in real-time. This accuracy helps maintain optimal stock levels, and contributes to accurate demand forecasts, which can prevent stockouts or overstock situations.
5. Supports scalability
As businesses grow and order volume increases, order-picking processes become even more important, because they allow warehouses to handle higher volumes of orders without compromising on accuracy or speed.
Different Methods of Order Picking
There are several different types of order-picking methods which are commonly used. These include:
1. Piece picking
Piece picking (also known as single order picking) is the most straightforward method of order picking, where a picker retrieves items for one order at a time. This method is typically used in smaller operations or when order volume is low. It’s simple and easy to implement, but it can be time-consuming and inefficient for large volumes of orders.
2. Batch picking
Batch picking (also known as multi-order picking) involves picking items for multiple orders simultaneously. Pickers collect multiple orders in one trip, which reduces travel time and increases efficiency. This method can also be suitable for high-volume order environments. However, batch picking requires additional sorting to separate items into individual orders after picking, and it can increase the complexity of picking.
3. Zone picking
In zone picking, the warehouse is divided into different zones, and each picker is responsible for picking items only within their designated zone. Orders are then passed from one zone to the next until all items are picked. This method reduces travel times, and is typically efficient for large warehouses with a diverse range of products, but it requires coordination and proper handoff between zones to ensure order completeness.
4. Wave picking
Wave picking is a hybrid approach that combines elements of batch and zone picking. Orders are grouped into “waves” based on specific criteria (such as shipping schedules or order priorities). Pickers then retrieve items within their zone for the current wave, and those items are consolidated later. This method can optimize picking efficiency by grouping similar orders, and can be timed to align with shipping schedules, but it requires sophisticated planning and coordination.
5. Cluster picking
Cluster picking involves picking multiple orders at once, using a cart or tote system to keep orders separate during the picking process. This method allows a picker to retrieve items for several orders in a single trip through the warehouse. This method can reduce travel times and keep orders organized during collection, but it might become cumbersome with large orders or a high volume of small items.
6. Automated picking systems
Automated picking systems, such as robotic pickers, use technology to retrieve items. These systems can significantly enhance the fficiency and accuracy of orders, and might reduce labor costs, but they often require a high initial investment and maintenance costs, as well as a well-structured inventory system.
Technologies Used in Order Picking
The evolution of warehouse technology has significantly transformed the order-picking process. Leveraging these advanced technologies can enhance accuracy, efficiency, and speed. Here are some of the key technologies used in order picking.
1. Barcode scanners
Barcode scanners are one of the most common technologies used in order picking. They help in accurately identifying products and verifying the items picked against the order details.
2. Pick-to-light systems
Pick-to-light systems use light indicators to guide pickers to the correct item locations. When an order is ready to be picked, lights illuminate the exact location, guiding the picker to different locations.
3. Inventory management systems
Inventory management systems track stock levels, manage reorder points, and track inventory movement, while the data from these systems inform demand forecasts. These systems ensure there is always enough stock to meet demand, without overstocking.
4. Drones
Drones are emerging as a new technology in inventory management and order picking, especially in large warehouses. Warehouse drones can quickly scan and retrieve items, and provide real-time inventory data and aerial surveillance.
Order picking is a fundamental process in warehouses, but it can be complex to execute accurately. By understanding order picking, and choosing the best technologies and processes for your business, you can ensure order picking helps support business growth and customer satisfaction.
Fuel Order Picking with StockIQ
Efficient, optimal order picking goes hand-in-hand with your inventory management technologies. And if you’re ready to marry your data with your order-picking processes, StockIQ is here to help. StockIQ is a user-friendly supply chain management software that helps you control inventory, simplify ordering, and improve forecasting.
Empower your warehouse and business with the powerful inventory insights of StockIQ by contacting us today or requesting a StockIQ demo.
