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, a core component of logistics and supply chain management, is the process of selecting individual items or units from storage locations within a warehouse or distribution center. This operation is fundamental to the seamless flow of goods in the supply chain, ensuring that the right products are picked, assembled, and prepared for shipping, order fulfillment, or other distribution processes. In this article, we will explore the concept of piece picking, its significance in logistics, the methods employed, and its impact on driving efficiency and accuracy in the supply chain.

The Vital Role of Piece Picking

Piece picking stands as a critical link in the modern supply chain for several compelling reasons:

• Precision in Order Fulfillment: In the age of e-commerce and consumer expectations for speedy, error-free deliveries, piece picking plays an essential role in guaranteeing that the correct products are chosen and dispatched in the right quantities. This level of precision is crucial for meeting customer demands and building trust.
• Optimized Inventory Management: Piece picking is closely intertwined with inventory control. By meticulously tracking which individual items are selected for shipment or replenishment, warehouses can maintain precise control over their stock levels, mitigating the risks of overstocking or running out of popular items.
• Cost-Efficient Operations: Effective piece picking significantly contributes to cost savings within warehousing operations. By streamlining the process, warehouses can reduce labor costs, minimize equipment wear and tear, and maximize the use of valuable storage space.
• Enhanced Customer Satisfaction: Timely and accurate order fulfillment, made possible through piece picking, leads to improved customer satisfaction. Satisfied customers are more likely to become repeat customers and advocates for the business, driving long-term success.

Methods of Piece Picking

Warehouses employ various methods of piece picking, with each tailored to their specific needs and constraints. Here are some common piece picking methods:

• Manual Piece Picking: In smaller-scale operations or when handling fragile or irregularly shaped items, manual piece picking remains a preferred method. Warehouse personnel use their skills and judgment to select individual items.
• Batch Picking: Batch picking involves selecting multiple orders simultaneously to increase efficiency. Warehouse workers gather items for several orders at once, reducing travel time within the facility and boosting 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 Piece Picking: Automation technologies, such as robotic pickers equipped with computer vision and machine learning algorithms, have gained prominence. These technologies streamline piece picking by reducing the need for human intervention, especially in high-volume, repetitive tasks.

Conclusion

Piece picking is a cornerstone of efficient warehouse management and supply chain operations. Its impact reverberates beyond the warehouse walls, influencing customer satisfaction, cost control, and overall business success. As technology continues to advance, piece picking methods will become more sophisticated, further enhancing efficiency and accuracy in this vital logistics process.

Case Picking

Operations that use case picking tend to have less diversity in product characteristics than operations that use piece picking. There are typically fewer SKUs and higher picks per SKU.

Pallet Picking

Full-pallet picking, or unit-load picking, uses much simpler systematic methods than piece picking or case picking. However, there are many choices in storage equipment, storage configurations and types of lift trucks.

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