Warehouse Pick Path Optimization: Streamline Order Fulfillment & Reduce Ecommerce Costs

Some business owners might think things like the latest technology, the newest automation tools, or even AI-driven robots are the ultimate solutions to warehouse inefficiency. But what about simpler concepts like a pick path: the route workers take to locate and retrieve items? Studies show that up to 70% of a warehouse picker’s time is spent on travel alone.

With many warehouses struggling with inefficiencies like poorly planned layouts, long picking times, and congestion, businesses that fail to optimize their pick paths risk slower fulfillment, higher labor expenses, and increased error rates.

This guide will explore the key components of warehouse pick path optimization, best practices for implementation, and how leveraging technology can help businesses streamline fulfillment.

What is pick path optimization?

Pick path optimization is the process of designing the most efficient routes for warehouse staff to follow when retrieving items for orders. By minimizing travel distance and time, businesses reduce labor costs, accelerate order fulfillment, and improve warehouse capacity utilization. This strategy is critical for warehouse order picking efficiency, especially for high-volume ecommerce warehousing operations.

Why pick path optimization matters for ecommerce operations

Optimizing a warehouse’s pick path may not seem like the most pressing concern, but it can directly impact your business in a variety of ways, such as:

• Improved order accuracy: When pick paths are organized, items are retrieved correctly, reducing errors and mis-picks.
• Faster order fulfillment: By cutting down on travel time, workers can pick and fulfill orders faster, improving picking rates.
• Reduced costs: Shorter pick paths mean fewer labor hours per order, keeping costs under control.
• Minimized warehouse congestion: Strategic path design prevents workers from crossing paths unnecessarily, avoiding delays and bottlenecks.
• Scalability: As order volumes grow, optimized pick paths make it easier to handle more demand without adding staff or increasing inefficiencies.

Key components of warehouse pick path optimization

Optimizing pick paths isn’t just about rearranging shelves. It requires a holistic approach combining warehouse organization, inventory management, and technology. Below are the pillars of an effective strategy.

Pick path layout and strategy

An efficient warehouse layout ensures workers follow a logical sequence guided by a pick list—a roadmap that prioritizes items based on demand and proximity. Start by grouping frequently picked items together and placing high-demand products near packing stations. This reduces travel time between storage locations and ensures quicker order processing.

Picking strategies like batch picking, pick to cart, or zone picking can further improve efficiency by allowing workers to pick multiple orders in a single trip.

Bin and item positioning

A well-organized bin system minimizes unnecessary movement and maximizes efficiency. Here are a few suggestions on how to position your stock:

• Fast-moving items: Store popular products at waist level in easily accessible bins to reduce bending or reaching.
• Slow-moving items: Place items that are rarely picked in less accessible areas, such as higher shelves or back corners.
• Categorization: Group similar products together to reduce the time spent searching for specific SKUs.

Data and AI-driven optimization

Data and AI play a critical role in modern pick path automation. By analyzing order patterns and real-time data, businesses can adjust pick paths dynamically. For example, if an AI-powered system detects that a certain SKU is being ordered more frequently during the holiday season, it can suggest moving that product closer to packing stations temporarily. For businesses facing sudden demand surges, pairing these insights with on-demand warehousing solutions can provide additional storage flexibility to accommodate overflow inventory without overextending existing infrastructure.

ShipBob’s warehouse management solutions leverage AI partners to do everything from monitor inventory movement, dynamically change prices, streamline order batching, and more—ensuring your warehouse stays optimized year-round.

How pick path optimization improves warehouse efficiency

Modern warehouses are big, and traveling from one end to the other can consume valuable time, slowing down the entire fulfillment process. 

However, by implementing optimized pick paths, businesses can minimize unnecessary movement, improve order accuracy, and make it easier to scale.

Reduced labor costs and increased productivity

Optimized pick paths significantly reduce the time workers spend walking between bins. This means fewer labor hours are required for the same workload, allowing businesses to process more orders per shift.

For instance, a fulfillment center that reduces walking time by just 10 seconds per order can save hours of labor daily across hundreds of orders.

Enhanced accuracy and reduced mis-picks

Errors during warehouse order picking can lead to returns, lost revenue, and frustrated customers. By organizing inventory strategically and using tools like a powerful WMS, businesses can guide workers through accurate pick paths, reducing mistakes and improving customer satisfaction.

Scalability benefits for growing businesses

As businesses grow, pick path optimization ensures they can handle increased order volumes without sacrificing efficiency. Paired with dynamic storage and warehouse capacity planning, this approach allows for smooth scalability even during peak periods.

Best practices for implementing pick path optimization

While the theory behind pick path optimization is straightforward, successful execution hinges on a combination of a few factors. Let’s take a look at a few best practices.

Regularly review and refine pick paths

Effective pick path optimization requires ongoing adjustments to keep pace with changing demand, seasonal trends, and product lifecycle shifts. For example, a swimwear brand might prioritize sunscreen and towels in easily accessible zones during summer, and then reposition winter apparel closer to packing stations in colder months. 

Demand forecasting helps anticipate these changes, while quarterly audits using a warehouse management system (WMS) can reveal bottlenecks like warehouse congestion.

Train warehouse staff on best picking practices

Even the most efficient pick path strategy falls flat without a well-trained team. Workers should master techniques like batch picking, which groups orders by zone to minimize redundant trips, and leverage tools like inventory scanners for real-time updates. Training should also emphasize ergonomics to reduce fatigue, such as storing high-demand items at waist level to avoid bending.

Invest in technology and software for continuous improvement

Software solutions like ShipBob’s WMS analyze thousands of data points—order history, turnover ratio, warehouse capacity, etc—to generate reports which can then be used to optimize routes that avoid congestion. Real-time analytics dashboards track KPIs like “time per pick” and flag slow-moving SKUs needing repositioning. 

Furthermore, IoT devices like RFID tags and smart shelves add another layer of precision, reducing search time and aligning with lean warehousing principles.

How ShipBob supports optimized warehousing for ecommerce brands

ShipBob empowers ecommerce businesses to transform their fulfillment operations into competitive advantages through a blend of cutting-edge technology, data-driven strategies, and scalable infrastructure.

Reduce errors and boost efficiency with ShipBob’s WMS

ShipBob’s warehouse management system (WMS) is the backbone of precision in order fulfillment. The system orchestrates every step of the picking process, from organizing inventory to providing guided workflows that minimize human error. For example, barcode scanning ensures workers pick the exact SKU and quantity required, reducing mis-picks substantially.

“Before we implemented ShipBob’s WMS, our order accuracy rate was around 92%. Now we’re at 99.7% for order accuracy, which equates to 2,100 less mispicks a year on average. When misshipments happen, we typically let customers keep the products because it’s more work to have them return the items.

So ShipBob’s system for picking orders has cut down on labor costs, reduced lost inventory, and eliminated the need for double shipping. That’s been huge for us. Our order picking and routing has also greatly improved with ShipBob.”

Jourdan Davis, Operations Manager at Pit Viper

Shorten picking times with strategic inventory placement

ShipBob’s Inventory Placement Program (IPP) revolutionizes inventory placement by distributing inventory across its US network of fulfillment centers based on customer demand and location. This ensures products are stored closer to end customers, slashing both picking times and shipping costs.

Unlock actionable insights with ShipBob’s analytics dashboard

Data is the key to continuous improvement, and ShipBob’s analytics dashboard delivers real-time visibility into critical metrics like average fulfillment cost per order, SKU performance over time, orders fulfilled on time, and more. With this data, brands can identify underperforming zones, forecast demand spikes, and refine pick paths without guesswork.

Get started with ShipBob

Regardless if you plan on leveraging ShipBob for outsourced order fulfillment or implementing ShipBob WMS in your own facility to improve warehouse pick paths (or even a combination of both for hybrid order fulfillment), you can fill out the form below to learn more and get started.

Warehouse pick path FAQs