Order processing

Order processing is the process or work-flow associated with the picking, packing, and delivery of the packed items to a shipping carrier and is a key element of order fulfillment. Order processing operations or facilities are commonly called “distribution centers” or “DC 's”. There are wide variances in the level of automation associating to the “pick-pack-and-ship” process, ranging from completely manual and paper-driven to highly automated and completely mechanized; computer systems overseeing this process are generally referred to as Warehouse Management Systems or “WMS”.

Process

Automated picking

Sorting packages according to destination

Order processing is a sequential process involving:

• Picking: consists in taking and collecting articles in a specified quantity before shipment to satisfy customers' orders.
• Sorting: process that separates items according to destination.
• Pre-consolidation or package formation: includes weighting, labeling and packing.
• Consolidation: gathering packages into loading units for transportation, control and bill of lading.

Picking

Person to goods picking assisted by conveyor belt

Order picking or order preparation is one of a logistic warehouse's processes. It consists in taking and collecting articles in a specified quantity before shipment to fulfil customer orders. It is a basic warehousing process and has an important influence on logistic processes.

It is one of the warehouse management system functions.

Picking Strategies

There are several strategies for order picking, including:

• Piece picking or picker to part method: the order picker(s) move(s) to collect the products necessary for one order. This is commonly seen in distribution centers for retail chains, whereby a shop will require a great many replenishment goods. A picker may pick all or part of the replenishment for one shop.
• Zone picking method: each order picker is assigned to one specific zone and will only realize order picking within this zone. For instance, in an electrical retail environment, both small and large items may be required and a picker on an electric vehicle such as a powered pallet truck (PPT) or an order picker vehicle may pick large and heavy items whereas a foot picker may pick small and light ones from another part of the warehouse. The two picks are eventually collated.
• Batch picking method: order pickers move to collect the products necessary for several orders at one time through the most efficient route in the warehouse.
• Wave picking method: Wave picking is the combination of zone and batch picking, where batches of orders are passed from picker to picker through separate zones.
• Sorting systems method: no movement of the order picker(s), the products are brought to her or him by an automatic system (conveyor system, automatic storage ...).
• Pick to box method: same strategy as piece picking above, but when product is picked, it is placed directly into a mailing-ready container, removing the need for any interim repackaging for mailing / transit purposes. This method requires what is sometimes referred to as a “cartonization” step, where the warehouse management system (WMS) figures out before the pick is started how many boxes will be required (and what size) so that the picker goes out to the warehouse with the correct boxes already in hand.

Note that these strategies are not mutually exclusive to each other. For example, wave picking can be used to batch picks, which are then handled via zone or piece picking. A warehouse may also need to support alternate picking strategies due to physical layout or product distribution; for example, if some products are only sold by pallet and require special lifting equipment, those pallet-orders might be batched or processed differently that the rest of the products which might be piece-picked — alternatively, part of a warehouse might be automated with sorting systems while another part is not.

Piece Picking

Piece picking, also known as broken case picking or pick/pack operations, describes systems where individual items are picked. Operations using piece picking typically have a large stock keeping unit, or SKU, base in the thousands or tens of thousands of items, small quantities per pick, and short cycle times. Examples of piece pick operations include mail-order catalog companies and repair parts distributors.

Case Picking

Case picking is a fundamental process in the world of warehousing and distribution. This essential operation involves the selection and retrieval of individual cases or cartons of products from storage locations within a warehouse. Case picking is a critical link in the supply chain, ensuring that products are accurately assembled for shipping, order fulfillment, or further distribution. In this article, we will delve into the concept of case picking, its significance, methods, and its impact on efficient supply chain management.

The Importance of Case Picking

Case picking is an integral part of modern logistics and supply chain management for several compelling reasons:

• Precise Order Fulfillment: In an era of e-commerce and consumer expectations for fast, accurate deliveries, case picking plays a vital role in ensuring that the right products are selected and shipped in the correct quantities. This precision is essential for meeting customer demands.
• Efficient Inventory Control: Case picking is closely tied to inventory management. By meticulously tracking which cases are selected for shipment or replenishment, warehouses can maintain precise control over their stock levels, reducing the risks of overstocking or running out of high-demand items.
• Cost Efficiency: Effective case picking significantly contributes to cost savings in warehousing operations. By streamlining the process, warehouses can reduce labor costs, minimize equipment wear and tear, and maximize the utilization of valuable storage space.
• Enhanced Customer Satisfaction: Timely and accurate order fulfillment, made possible through case picking, leads to improved customer satisfaction. Satisfied customers are more likely to return for future purchases and recommend the business to others, driving long-term success.

Methods of Case Picking

Warehouses employ various methods of case picking, each tailored to their specific needs and constraints. Some common methods include:

• Manual Case Picking: In smaller-scale operations or when handling fragile or irregularly shaped items, manual case picking is a preferred method. Warehouse personnel rely on their skill and judgment to select the appropriate cases.
• Batch Picking: Batch picking involves selecting multiple orders simultaneously to boost efficiency. Warehouse workers gather items for several orders at once, reducing travel time within the facility and increasing overall productivity.
• Zone Picking: In larger warehouses, the facility is divided into zones, with each zone assigned to a specific picker. This method is particularly useful when dealing with a wide range of products or managing large inventories.
• Automated Case Picking: Automation technologies, such as conveyor systems, robotic pickers, and automated guided vehicles (AGVs), have gained prominence in recent years. These technologies streamline case picking by reducing the need for human intervention, particularly in high-volume, repetitive tasks.

Conclusion

Case picking is a cornerstone of efficient warehouse management and supply chain operations. Its impact extends far beyond the confines of the warehouse, influencing customer satisfaction, cost control, and overall business success. As technology continues to advance, case picking methods will undoubtedly become more sophisticated, further enhancing the efficiency and accuracy of this crucial logistics process.

Pallet Picking

Pallet picking is a critical operation in the field of warehousing and logistics. It involves the careful selection and retrieval of palletized goods from storage locations within a warehouse or distribution center. This process plays a pivotal role in ensuring the efficient flow of goods through the supply chain, ultimately contributing to timely order fulfillment, cost reduction, and customer satisfaction.

The Significance of Pallet Picking

Pallet picking is not merely a routine task but a fundamental element of modern supply chain management. Its importance is underscored by several key factors:

• Efficient Order Fulfillment: In today's fast-paced world of e-commerce and retail, customers expect quick and accurate deliveries. Pallet picking ensures that the right products are selected and assembled in the correct quantities to meet these high expectations.
• Optimized Inventory Management: Pallet picking is closely intertwined with inventory control. By systematically tracking which pallets are selected for shipment or replenishment, warehouses can maintain precise inventory levels. This, in turn, minimizes the risks associated with overstocking or running out of in-demand products.
• Cost Efficiency: Effective pallet picking contributes significantly to cost reduction in warehousing operations. By streamlining the process, warehouses can cut down on labor expenses, reduce equipment wear and tear, and make better use of valuable storage space.
• Enhanced Customer Satisfaction: Timely and error-free order fulfillment, made possible through pallet picking, leads to improved customer satisfaction. Happy customers are more likely to return for future purchases and recommend the business to others.

Methods of Pallet Picking

Various methods are employed in the practice of pallet picking, each tailored to the specific needs and constraints of the warehouse. Some common methods include:

• Manual Picking: In smaller-scale operations or when dealing with fragile or irregularly shaped items, manual pallet picking by warehouse personnel may be the preferred method. This method relies on human skill and judgment to select the appropriate products.
• Batch Picking: Batch picking involves selecting multiple orders simultaneously to increase efficiency. Warehouse workers gather items for several orders at once, reducing travel time and increasing productivity.
• Zone Picking: In larger warehouses, the facility is divided into zones, and each zone is assigned to a specific picker. This method is particularly useful when handling a wide range of products or when dealing with large inventories.
• Automated Picking: Automation technologies, such as conveyor systems, robotic pickers, and automated guided vehicles (AGVs), are becoming increasingly prevalent. These technologies streamline pallet picking by reducing the need for human intervention, particularly in high-volume, repetitive tasks.

Conclusion

Pallet picking is the linchpin of efficient warehouse management and supply chain operations. Its impact extends far beyond the confines of the warehouse, influencing customer satisfaction, cost control, and overall business success. As technology continues to evolve, pallet picking methods will undoubtedly become more sophisticated, further enhancing the efficiency and precision of this critical logistics process.

Sorting

Sorting machines in distribution

Pick and pack

Pick and pack is a part of a complete supply chain management process that is commonly used in the retail distribution of goods. It entails processing small to large quantities of product, often truck or train loads and disassembling them, picking the relevant product for each destination and re-packaging with shipping label affixed and invoice included. Usual service includes obtaining a fair rate of shipping from common, as well as expediting truck carriers. Pick and Pack services are offered by many businesses that specialize in supply chain management solutions. Case picking is the gathering of full cartons or boxes of product. This is often done on a pallet. In the consumer products industry, case picking large quantities of cartons is frequently an entry-level employee's task. There is, however, significant skill required to make a good pallet load of product. Key requirements are that cartons not be damaged, they make good use of the available cube (space) and be quick to assemble.

Warehouse management system products create pick paths to minimize the travel distance of an order selector, but typically neglect the need to maximize the use of cube, segregate products that should not touch or minimize damage.

Factors

The specific "order fulfillment process" or the operational procedures of distribution centers are determined by many factors. Each distribution center has its own unique requirements or priorities. There is no "one size fits all" process that universally provides the most efficient operation. Some of the factors that determine the specific process flow of a distribution center are:

• The nature of the shipped product — shipping eggs and shipping shirts can require differing fulfillment processes
• The nature of the orders — the number of differing items and quantities of each item in orders
• The nature of the shipping packaging — cases, totes, envelopes, pallets can create process variations
• Shipping costs — consolidation of orders, shipping pre-sort can change processing operations
• Availability and cost and productivity of workforce — can create trade-off decisions in automation and manual processing operations
• Timeliness of shipment windows — when shipments need to be completed based on carriers can create processing variations
• Availability of capital expenditure dollars — influence on manual versus automated process decisions and longer-term benefits
• Value of product shipped — the ratio of the value of the shipped product and the order fulfillment cost
• Seasonality variations in outbound volume — amount and duration of seasonal peaks and valleys of outbound volume
• Predictability of future volume, product, and order profiles
• Predictability of distribution network — whether the network itself is going to change
• Presence of small volume distribution
• Minimization of shipping costs

This list is only a small sample of factors that can influence the choice of a distribution center's operational procedures. Because each factor has varying importance in each organization, the net effect is that each organization has unique processing requirements.

The effect of Globalization has immense impacts on much of the order fulfillment, but its impact is felt mostly in transportation and distribution.

See also

• Counter-to-counter package
• Distribution center
• Document automation
• Shipping list
• Warehouse
• Warehouse management system