Order Picking System: What It Is and How It Works

Efficient and accurate order fulfillment is crucial in the logistics and supply chain industry. An advanced order picking system is key to achieving efficient fulfillment, ensuring that customer orders are handled quickly and correctly.

Read on this blog to learn the concept of order picking systems, exploring what they are, how they function, and their importance in the modern warehousing landscape.
 

 

Order picking is a critical process in the logistics and supply chain industry, where individual items are retrieved from storage to fulfill customer orders. An order picking system is a structured method of selecting and assembling products from warehouse shelves to complete a customer's order efficiently and accurately.

Order picking systems can range from manual processes to highly automated solutions, designed to enhance accuracy and efficiency in picking operations. Essentially, an order picking system ensures that the right products are picked in the correct quantities and delivered to the right location for packaging and shipment.

The order picking process involves several steps, each crucial for ensuring accuracy and efficiency. Here’s a detailed look at how it works:

1. Order Receipt: Orders are received from customers through various channels such as e-commerce platforms, ERP systems, or customer service representatives.

2. Order Analysis: The orders are analyzed to determine the best picking method, considering factors like order volume, item size, and delivery deadlines.

3. Picking Plan Creation: A picking plan is created, detailing the sequence in which items should be picked to optimize efficiency.

4. Order Picking Execution: Pickers follow the plan to retrieve items from the warehouse shelves. This may involve manual picking or automated systems.

5. Order Verification: Picked items are verified against the order to ensure accuracy.

6. Order Packing: Items are packed for shipment, ensuring they are protected during transit.

7. Order Shipping: The packed orders are shipped to customers.

Automation plays a significant role in modern order picking systems. Technologies such as robotics, automated storage and retrieval systems (AS/RS), and pick-to-light systems enhance efficiency and reduce human error.

A well-implemented order picking system significantly enhances operational efficiency. By streamlining the picking process, it reduces the time taken to fulfill orders, minimizes errors, and optimizes labor utilization.

Accurate and timely order fulfillment is crucial for customer satisfaction. An efficient order picking system ensures that customers receive the correct products on time, boosting their overall experience and loyalty.

Effective order picking systems help in reducing operational costs by minimizing labor expenses, reducing errors, and optimizing inventory management. This, in turn, improves the bottom line for businesses.

There are several order picking methods, each with its unique advantages and applications:

Workers pick one order at a time. Suitable for small warehouses with low order volumes. Single order picking is straightforward and minimizes the complexity of tracking multiple orders simultaneously. It is particularly effective for businesses with low order volumes or those that require high accuracy, as it reduces the risk of picking errors.

However, it can be less efficient compared to batch or zone picking in larger operations due to the increased travel time between picks.

Multiple orders are picked simultaneously. Efficient for medium to large warehouses with high order volumes. In this method, pickers collect items for several orders in a single trip through the storage area, often using a picking cart or a similar tool to keep items organized. Batch picking is beneficial in operations with a high volume of small orders, as it minimizes the time spent traveling between locations.

Batch picking can improve productivity and reduce labor costs, but it requires effective organization and tracking to ensure accuracy and prevent order mix-ups.

The warehouse is divided into zones, and workers are responsible for picking within their designated zones. Ideal for large warehouses with a diverse product range. Each picker is responsible for selecting items only within their designated zone. When an order requires products from multiple zones, the items are picked separately and then consolidated at a later stage, often at a central packing area. Zone picking reduces the distance each picker needs to travel, improving efficiency and productivity, especially in large warehouses. Zone picking can also facilitate specialization, as pickers become familiar with their specific areas, further enhancing speed and accuracy.

However, it requires robust coordination to ensure seamless integration of items from different zones into complete orders.

Combines batch and zone picking. Orders are picked in waves based on criteria like shipping schedules. Each wave consists of multiple orders, and pickers can either work in specific zones or pick across the entire warehouse, depending on the setup. The key advantage of wave picking is its ability to synchronize picking activities with other warehouse operations, such as shipping schedules, thus improving overall workflow efficiency.

Uses robotics and automation to pick orders. Best for high-volume, high-speed operations. It employs various automated systems, such as robotic arms, conveyor belts, and automated guided vehicles (AGVs), to efficiently and accurately pick products. Automated picking is designed to enhance speed, accuracy, and productivity, reducing labor costs and minimizing human error. It is particularly beneficial for high-volume operations with repetitive tasks, as it can handle large quantities of orders with consistent precision.

A well-designed order picking system streamlines the process of selecting and organizing products for customer orders, reducing the time and effort required to locate items. The efficiency translates into faster order fulfillment, which is critical in today’s market where customers expect quick and accurate deliveries. By minimizing the travel time and optimizing the routes for pickers, an order picking system can significantly boost productivity and reduce labor costs, leading to higher profitability for the business.

Accuracy is another crucial benefit of having an order picking system. With manual picking, the risk of errors is higher, leading to incorrect orders and dissatisfied customers. An effective picking system integrates technology, such as barcode scanners and automated sorting, to ensure that the correct items are picked every time. It reduces the likelihood of returns and increases customer satisfaction and loyalty. Additionally, a robust order picking system can provide real-time inventory updates, allowing for better inventory management and reducing the chances of stockouts or overstock situations.

An order picking system enhances scalability and adaptability within a warehouse. As businesses grow and order volumes increase, a flexible and efficient picking system can easily accommodate the increased demand. It can be adjusted to handle peak periods, such as holidays or special promotions, without compromising performance. By integrating with other warehouse management systems, an order picking system can provide comprehensive insights into warehouse operations, enabling better decision-making and strategic planning.

Utilizing order picking systems is particularly advantageous in several key scenarios, ensuring that warehouse operations are optimized for efficiency, accuracy, and scalability. Here are some specific situations where order picking systems should be employed:
 

When a warehouse handles a large number of orders daily, an order picking system can significantly enhance efficiency by streamlining the picking process. It is essential for e-commerce businesses, retail distribution centers, and any operation with a high throughput of products.

In environments where orders consist of a diverse range of products, including items of different sizes, weights, and storage locations, an order picking system helps manage complexity. Systems like zone or wave picking can ensure that these varied orders are processed smoothly and accurately.

When customers demand quick and accurate deliveries, such as in the case of perishable goods or high-priority shipments, an order picking system minimizes errors and speeds up the picking process. It helps meet customer expectations and improves overall satisfaction.

During peak seasons, such as holidays or special sales events, order volumes can spike dramatically. An order picking system allows warehouses to scale operations efficiently to handle these peaks without sacrificing accuracy or speed, ensuring timely fulfillment.

In warehouses with a large workforce, an order picking system can optimize labor allocation and reduce the time workers spend walking and searching for items. It increases productivity and reduces fatigue, leading to a more efficient and motivated workforce.

When precise inventory tracking is crucial, an order picking system provides real-time updates on stock levels, helping prevent stockouts and overstock situations. It is vital for maintaining a balanced inventory and reducing carrying costs.

In warehouses with limited space, an order picking system can optimize storage layouts and picking routes, making the best use of available space and improving overall warehouse organization.

Choosing the right order picking system for your warehouse involves several key considerations to ensure that the system aligns with your operational needs and goals. Here are the essential steps and factors to consider when selecting an order picking system:

Determine the average number of orders processed daily and the variety of items in each order. High order volumes with diverse items might benefit from batch or wave picking, while lower volumes with simple orders could be managed with single order picking.

Analyze the physical layout of your warehouse, including storage locations, aisle widths, and the distance between picking areas. Zone picking might be suitable for large warehouses, while a smaller warehouse could benefit from a simpler system like single order picking.

Consider the number of workers and the level of automation available. If labor is limited or expensive, automated picking systems or technologies like pick-to-light or voice picking might be more efficient.

Take into account the size, weight, and fragility of the items being picked. Certain systems are better suited for handling specific types of products, such as automated systems for small, lightweight items or manual systems for larger, bulkier products.

Identify periods of high demand and ensure the system can scale accordingly. Wave picking can be particularly effective during peak periods, as it allows for organized and efficient processing of large order volumes.

Ensure that the order picking system can integrate seamlessly with your current warehouse management system (WMS) and other technologies. This integration is crucial for real-time inventory tracking and efficient order processing.

Evaluate the initial investment and ongoing operational costs of the order picking system. Automated systems may have higher upfront costs but can lead to long-term savings in labor and increased efficiency.

Choose a system that enhances picking accuracy and speed. Technologies like barcode scanning, RFID, and automated sorting can help minimize errors and improve fulfillment times.

Select a system that can adapt to changes in order volume, product range, and business growth. A flexible system ensures that your warehouse operations remain efficient as your business evolves.

Order accuracy is a critical KPI for evaluating the effectiveness of an order picking system. High order accuracy means fewer errors and returns, leading to increased customer satisfaction.

Picking speed measures how quickly items are picked and prepared for shipment. Faster picking speeds contribute to quicker order fulfillment and better operational efficiency.

Labor efficiency evaluates how effectively the workforce is utilized in the picking process. An efficient order picking system maximizes labor productivity, reducing overall operational costs.

Inventory accuracy is essential for ensuring that the right items are available for picking. A robust order picking system helps in maintaining accurate inventory records, preventing stockouts and overstock situations.

SFC stands at the forefront of order fulfillment with cutting-edge facilities in Shenzhen, China. Utilizing sophisticated software, we specialize in seamless and trustworthy fulfillment solutions for ecommerce, dropshipping, and crowdfunding platforms. At SFC, we are dedicated to accelerating your business growth through secure warehousing, efficient processing, customizable packaging options, and adaptable shipping strategies while saving you time and money.
 

Whether you have or do not have a fulfillment partner, particularly your products manufactured in China, you should consider SFC. Click the button below and get help from SFC logistics experts.

The main purpose of an order picking system is to efficiently and accurately retrieve items from a warehouse to fulfill customer orders, thereby enhancing operational efficiency and customer satisfaction.
 

Automation improves order picking by increasing speed, reducing errors, and optimizing labor utilization. Technologies such as robotics and AS/RS streamline the picking process and enhance accuracy.
 

The different types of order picking methods include discrete order picking, batch picking, zone picking, and wave picking. Each method has its advantages and is suited to different operational needs.
 

To choose the right order picking system, assess your business needs, evaluate different systems, consider automation technologies, and ensure vendor support and training.
 

Order accuracy is important because it directly impacts customer satisfaction. Accurate order fulfillment reduces errors and returns, leading to a better customer experience and lower operational costs.