Order fulfillment is a more difficult process than it once was. Decades ago, orders were fewer but larger in size. The proliferation of SKU types was not as rampant as it is today. The typical pick, pack, and ship operation moved more pallets and cases than individual items.
Moving larger quantities of fewer items is inherently efficient while the reverse, moving fewer quantities of more items is inefficient. Yet this inefficient customer order pattern is the trend seen by distribution centers today. One reason for this is the popularity of e-commerce. Warehouses must fulfil directly to the customer the huge number of small orders made on thousands of e-commerce websites. Shipments to retailers are also becoming more difficult. In an effort to reduce their inventories, retailers are placing smaller but more frequent orders.
This trend toward lots of small orders of individual items makes the picking and packing process more labor-intensive and complex.
Here are three tips on meeting this challenge:
#1 Optimise Warehouse Layout
Common issues related to warehouse layout that affect picking and packing efficiency include:
- Poor Organisation: An unorganised warehouse layout can lead to longer search times for items, increasing picking times and the likelihood of errors.
- Inefficient Flow: A layout that does not facilitate a logical flow of goods from receiving to storage, picking, packing, and shipping can create bottlenecks and slow down operations.
- Limited Accessibility: Items that are not stored in easily accessible locations can cause delays, especially for high-demand products.
- Space Utilisation: Inefficient use of space can lead to overcrowded aisles and reduced maneuverability for pickers and equipment.
These are best practices in designing an effective warehouse layout:
- Zoning: Divide the warehouse into zones based on the frequency of item picking. High-demand items should be placed in easily accessible zones.
- Logical Flow: Arrange the layout to support a smooth flow of goods from receiving to shipping, minimizing backtracking and congestion.
- Clear Signage: Use clear and consistent signage to help workers navigate the warehouse quickly and efficiently.
Slotting strategies to improve accessibility:
- ABC Analysis: Categorise inventory into A (high-demand), B (medium-demand), and C (low-demand) items. Place A items in the most accessible locations.
- Seasonal Slotting: Adjust item locations based on seasonal demand to ensure that popular items are easily reachable.
- Vertical Storage: Utilise vertical space effectively with shelving and racks, placing frequently picked items at waist height to reduce bending and stretching.
#2 Implement Efficient Picking Methods
There are many picking methods that businesses can implement to enhance order fulfillment efficiency. Single-order picking involves a picker selecting items for one order at a time. This method is simple but not very efficient when dealing with large volumes. Batch picking allows a picker to gather items for multiple orders simultaneously, reducing travel time by grouping similar items. Zone picking divides the warehouse into zones, with pickers assigned to specific areas and orders consolidated at the end. Wave picking is similar to batch picking, where orders are grouped and picked together based on certain criteria such as delivery schedules or priorities.
The below needs to be considered in selecting and implementing the most efficient picking method:
- Order Volume and Complexit: Choose a picking method based on the volume of orders and the complexity of items. Single-order picking is suitable for low-volume, high-complexity orders, while batch and wave picking are ideal for high-volume, low-complexity orders.
- Warehouse Layout: Ensure the picking method aligns with the warehouse layout. Zone picking works well in larger warehouses with distinct product zones.
- Labor Availability: Consider the number of available pickers and their expertise. Batch and wave picking can maximize efficiency with a limited workforce.
- Technology Compatibility: Evaluate the compatibility of picking methods with existing or planned technology solutions
#3 Streamling Packing Processes
Using the wrong packaging or making packing mistakes can cause problems such as product damage, higher shipping costs, unhappy customers, returns, and delays in shipments and productivity. Implementing best practices can make packing easier, faster, and more accurate. Examples of these practices include: preparing in advance, creating dedicated packing areas, conducting quality checks, following standardized procedures, and utilising technology.
Below are best practices to improve packing efficiency and accuracy:
- Pre-Packing Preparation: Ensure that all necessary packing materials and tools are readily available to packers to minimise delays.
- Packing Stations: Set up dedicated packing stations equipped with the right materials and tools to streamline the process.
- Quality Checks: Implement quality control checks to verify the accuracy of packed orders before shipment.
- Standardising Packing Procedures: Develop and enforce SOPs to ensure consistency and accuracy. Additionally, provide clear guidelines and comprehensive training for all packers.
Enhancing Order Fulfillment Efficiency
To achieve optimal order fulfillment efficiency, it is crucial to implement key best practices across various stages of the process. Optimising warehouse layout, selecting the most effective picking methods, and streamlining packing processes are fundamental steps. By addressing common challenges and integrating advanced technologies, businesses can significantly improve accuracy, reduce delays, and enhance overall operational performance.
We encourage you to assess your current practices and consider implementing these best practices to boost your order fulfillment efficiency. Evaluate your warehouse layout, review your picking methods, and standardize your packing processes to achieve faster, more accurate order processing. Embracing these improvements will not only increase customer satisfaction but also give your business a competitive edge in the market.
If you have questions about improving your picking, packing, and shipping operations, contact us today.
