Your guide to efficient order fulfillment
Is inefficiency in warehouse pick and pack hindering order fulfillment? Despite the potential for automation in many warehouse operations, order picking predominantly remains a manual process, reliant on human logic. However, it’s crucial to note that order picking constitutes a significant portion, approximately 55%, of labor costs, presenting substantial opportunities for labor savings. By implementing technology and equipment tailored for semi-automation, picking speed can surge from up to 140 items per hour to as high as 300 items per hour, accompanied by an enhancement in accuracy from 97% to 99%.
Now, let’s delve into a range of logistic strategies to optimize order fulfillment.
What is order fulfillment?
Order fulfillment begins with order picking, marking its initiation and paramount importance in the process. Upon receiving a customer’s order, order pickers undertake the crucial task of locating and retrieving it from the pallet rack to the forklift truck. Subsequently, this process may involve loading additional orders, transferring orders to the packaging or shipping area, and unloading orders onto the shipping line.
Manually picking requires reaching, bending, and straining. Even with proper technique, the repetitive actions required of this work leads to physical fatigue. Physical fatigue can hinder picking and increase the risk of injury.
Benefits of efficient order fulfillment with a semi-automated solution
- Reduce the need for team lifting
- Improve order fulfillment speed
- Minimized product damage during the picking process
- Support industry and regional compliance
- Enhanced employee well-being
Traditional warehouse order fulfillment strategies
The order fulfillment method your business selects depends on several different factors. This includes your:
- Business type
- Product type
- Warehouse layout
- Order mix
- Order volume
- Compliance requirements
Below are some of the most popular order fulfillment strategies. Many of these strategies can be combined.
- Zone picking
In large scale high-volume warehouses, zone picking is a popular method. The warehouse is divided into designated zones, and each employee is responsible for picking SKUs from their zone.
This strategy streamlines and optimizes logistics by minimizing “warehouse congestion”. It also reduces the amount of walking required by each employee.
- Batch picking
Batch picking is the concept of picking up multiple customer orders with the same SKU at the same time. This is popular in warehouses that only have a few SKUs, or a high volume of multiple SKUs.
- Discrete picking
Discrete picking proves optimal for small-scale warehouses or those with a restricted SKU range. Nevertheless, due to its time and labor-intensive nature, it’s less suitable for high-volume warehouses. This is primarily because the picker retrieves each item for a customer order individually, one SKU at a time.
After completing the picking for each individual customer order, pickers then transfer and load it to the shipping area before moving on to the subsequent customer order.
- Wave picking
Wave picking resembles discrete picking, albeit with pickers fulfilling orders in designated waves throughout the day. Employees are trained across multiple tasks, allowing them to alternate between duties during intervals between waves.
While this strategy effectively maximizes labor utilization and injects variety into the workday within small-scale warehouses, its efficiency diminishes as order fulfillment scales up.
- Combination of different strategies
The strategies above can be combined in a variety of ways.
- Batch picking is suitable for days or shifts with lower order volumes.
- Discrete picking is ideal for handling your highest volume SKUs.
- Zone picking may be reserved for periods like the holiday season or peak business periods.
- Wave picking is effective for managing lower-volume sections of your warehouse.
How can you pick up speed in order fulfillment?
Enhancing warehouse order fulfillment involves implementing a cohesive process. By leveraging suitable tools, technology, and operational procedures, you can attain swift and efficient fulfillment. This involves selecting inventory software, optimizing the layout and product placement, among other strategies.
Outlined below are proven methods to boost speed and efficiency. These can be customized and combined according to your specific needs, with certain tactics particularly beneficial during peak seasons.
- Ensure Product Availability and Stock Tracking: Utilize available software solutions to track inventory status, enabling automated alerts for managing expiration dates and replenishment needs.
- Data and Analytics: Leverage warehouse software to generate various generic and custom reports, aiding in the refinement of strategies below.
- Prioritize Product Placement: Optimize order picking by placing popular SKUs closest to the packaging/shipping area. Regularly review and adjust placement to ensure high-volume SKUs are easily accessible.
- Implement Seasonal Product Strategies: Adjust product placement based on seasonal demand fluctuations. For instance, prioritize toys before Christmas and outdoor gardening equipment during spring and summer months.
- Review Warehouse Layout: Organize products effectively to enhance picking efficiency. Group similar items together and place frequently ordered items in proximity to each other. For example, consolidate laptops and accessories regardless of brand or model.
- Implement Routing: Streamline warehouse flow by implementing routing strategies. Minimize wait times for pickers by ensuring smooth traffic flow, optimizing labor utilization.
Improving order fulfillment efficiency with technology and equipment
There’s no denying that warehouse picking and logistics technology and equipment represent substantial investments. Beyond the advantages discussed earlier, they also provide opportunities for entry-level employment.
Listed below are some specific investments worth considering. It’s common for warehouses to employ a mix of these options.
- Transition to Inventory Management Software: Initially, small warehouses may rely solely on sales software. However, as business expands, upgrading to inventory management software becomes essential. Evaluate if your current software needs an upgrade. Advanced options offer numerous benefits, optimizing order fulfillment and warehouse logistics while integrating seamlessly with sales software to provide comprehensive data and analytics. They can identify operational bottlenecks, map out picking strategies, prevent out-of-stock orders, minimize expired/deadstock items, automate inventory tracking, calculate operational costs, and promote interdepartmental transparency.
- Automated Storage and Retrieval Systems (AS/RS): Also known as AS/RS technology, these systems reduce or eliminate the need for manual product picking, making them ideal for high-volume warehouses or those dealing with heavy or bulky loads. Various components include:
- Robots: Automatic guided vehicles (AGVs) and autonomous mobile robots streamline order stacking and picking of large items using advanced camera and sensor technology.
- Unit-load AS/RS: These systems employ automated lifts and multi-directional conveyors to pick and relocate orders.
- Vertical Lift Modules (VLMs): Maximize vertical storage space and utilize narrow aisles efficiently. Combining static racks with computerized cranes, VLMs stack and pick items with precision, reaching multiple stories high and deep into racks.
- Utilize Suitable Order Picking Equipment: Semi-automated picking equipment is cost-effective and suitable for warehouses of all sizes. While an employee guides the equipment, manual lifting of SKUs is minimized. Consider the following options:
- Order Picker Forklift: Attach various picking tools to forklifts and pallet trucks, enabling employees to pick without lifting, bending, or straining. Equipped with heavy-duty suction cups, these forklifts lift from the top or sides of boxes, with lifting capacities of up to 80 KG.
- Vacuum Lifter: Industrial-powered lifters effortlessly handle complex, fragile, or heavy items such as boxes, glass, wood panels, and more. Maximum lift capacity is 270 kg.
- Multifunctional Lifter: Versatile lifters with interchangeable suction cups adapt to various SKUs, including boxes, plastic bags, glass, and metal canisters. These lifters can handle loads of up to 270 kg and comply with safety and hygiene standards.
- High-Frequency Lifter: Ideal for precise lifting and loading of items, controlled via joystick for rapid and accurate positioning. Suitable for boxes, meat blocks, luggage, and more, with a maximum lifting capacity of 65 kg.
Conclusion
Investing in a diverse range of warehouse lifting equipment not only enhances throughput, safety, compliance, and customer satisfaction but also boosts employee morale. By increasing the volume of orders processed without expanding staffing levels or warehouse size, such investments can significantly reduce labor hours.
If you are struggling with how to create a more efficient order picking process, reach out today — and we will find the best solution for your lifting needs.
Related Content
Four common challenges in warehouse order picking (and how to address them)
Warehouse Sorting and Palletizing for Efficient Operations
Reach out to us anytime and we’ll be happy to help you.
Do you need an urgent response, please call us at 630-655-2905
(8 AM–5 PM, CDT)
Are you looking for replacement parts? Please contact us at la.us.sales@piab.com.
Please specify what you want to lift with measures and weight, size of working area, and lifting height to get as accurate a quote as possible.
Are you unsure?
Call us at 630-655-2905 (8 AM–5 PM, CDT) for advice