With ecommerce booming around the world, we are witnessing an evolution of increasingly streamlined warehouse technologies and facilities. New warehouse management methods and automation are amplifying warehouse efficiency and diversity of logistics operations and revolutionizing the order fulfilment process.
The integration of robotics, autonomous warehouse components, and better warehouse management systems (WMS) in the ecommerce sector are giving businesses a firmer grip on supply chain management.
But one common area of optimisation remains: warehouse picking, which is a key component of a successful fulfilment operation.
In this article, we’ll dive into how warehouse picking plays a key role in fulfilment and how you can improve the picking process.
So, what do you want to learn?
- What is warehouse order picking?
- Why is a warehouse order picking system important?
- The 4 top warehouse picking strategies
- Warehouse picking efficiency best practices
- How ShipBob’s warehouse picking methods improve order fulfilment
- Improve warehouse picking efficiency with a WMS
- Find ecommerce operations jobs
- Warehouse picking FAQs
What is warehouse order picking?
Warehouse order picking is the pulling of an item or items in a warehouse or fulfilment centre for the purpose of fulfiling an order placed by a customer. Successful warehouse picking is a critical step within the order fulfilment process that requires high-tech equipment and labour focused processes to maintain high order accuracy rates across all orders leaving the warehouse.
Why is a warehouse order picking system important?
Finding the right order warehouse order picking system is important because it can increase the efficiency of your picking operations, increase order accuracy, and ultimately boost customer satisfaction. A warehouse order picking system will provide the following benefits.
1. Reduces warehouse costs
The warehouse picking process can be expensive given its labour-intensive nature, especially in larger facilities. Warehouse management systems keep track of customer orders and generate automated picking lists that help guide your pickers.
Investing in a warehouse order picking system that can group similar orders with nearby inventory to a single picker will make the order picking process more accurate and efficient, saving on both costs and time.
2. Improves customer satisfaction
Warehouse picking can directly affect customer satisfaction, as it can be the difference between a shipment that arrives as expected or one that has missing or incorrect items.
Additionally, if it’s taking too much time to pick orders, leading to delayed order fulfilment, some customers will not be pleased with late deliveries and delivery exceptions. It’s important to get this stage of the ecommerce supply chain right, every time.
Your order accuracy rate is an important metric, as it can be tied to the number of customer support inquiries, bad reviews, and even ecommerce exchanges and returns you receive. It can even deter customers from purchasing from you a second time, decreasing your customer lifetime value and having customer loyalty take a hit.
3. Makes pickers’ jobs easier
The right warehouse picking system helps your warehouse workers do their jobs better with less room for human error. By automatically assigning pickers optimised routes with validations and photos to ensure they are picking the right items from the order, they can improve accuracy while spending less time on each pick.
It’s worth noting that the right picking strategies and technology must go hand in hand with an optimised warehousing (e.g., having a warehouse that is organised, utilises space efficiently, and has items that are commonly ordered together close by one another).
The 4 top warehouse picking strategies
Implementing warehouse picking improvements are one of the most effective ways to optimise the supply chain. Depending on the warehouse size, number and types of products in it, and total staff count, one picking strategy may suit you better than others.
Be sure to understand how warehouse slotting works, so you can organise your warehouse the best way to accommodate your selected picking strategy.
Review the most common warehouse picking strategies below to better understand which option works best for you.
1. Batch picking
Batch picking works best when fulfiling many identical orders that use the same SKUs. This way, a picker can stay in the same area, rather than travel long distances across a warehouse just to go back to the same area they were just in. Batch picking aims to improve productivity as it reduces repeated trips, steps, and time.
2. Zone picking
Zone picking (also known as “pick and pass”) is similar to how zone defense works in sports — pickers are assigned to a physical area of the warehouse, where they only pick SKUs in that zone.
This means if an order has items in another zone, a different picker will pick that portion of the order, working like an assembly line. Zone picking is best suited for warehouses that fulfil complicated orders with many units or at least a combination of complicated and simple orders.
The warehouse itself must be organised in a way that makes this model work (e.g., keep fast-moving items with high inventory turnover in one zone and slow-moving SKUs in another zone).
The benefits are that a single picker can become familiar with the items in their zone and reduce errors rather than try to learn the ins and outs of the entire warehouse. The downside is that some zones will be much busier than others.
3. Wave picking
Wave picking is a variation of zone or batch picking that’s best for warehouses with large numbers of SKUs. It’s schedule-based throughout the day for better planning, taking labour, delivery times and ship dates, and carrier pick-ups into account, as well as the physical location of each product.
Rather than orders being assigned to pickers chronologically (in the order they are placed), they are all evaluated together to determine an optimal “wave” of orders that can be grouped and prioritised based on time and importance.
4. Discrete picking
Considered to be the simplest warehouse picking strategy, discrete order picking refers to when a picker works on one order at a time as each one is placed. The same picker retrieves all SKUs in the order, and can handle orders across the facility.
This method is best for small businesses with low SKU counts and/or small warehouses or storage facilities. Discrete picking requires a lot more movement than other picking strategies, but it makes sense to use until a business hits a certain scale that warrants one of the picking methods above.
Warehouse picking efficiency best practices
Anyone who runs a warehouse should be on the hunt for the best order picking methods and understand how to get the most out of them. The best strategies minimise picking times by making the frequently picked items more accessible through a quicker pick path. Below are some considerations to get the most out of warehouse picking.
1. Implement a WMS
Implementing warehouse management software can complement your warehouse and employees, and improve efficiency without compromising order fulfilment accuracy. A WMS should auto-generate pick lists, accurately display product availability, provide real-time insight into order status, help forecast when to replenish inventory through reorder point notifications, and even assist with planning staff labour.
2. Use the right warehouse equipment
Warehouse management teams must invest in the right tools and equipment that enhance safety, help with more efficient movement within the facility, and bring forth automation.
Between forklifts that transport large containers and rows of high warehouse racks to stack pallets, conveyor systems for sorting orders, barcodes and inventory scanners for improving tracking, and even wearable devices to eliminate paper or bulky laptops, there are continuous improvements that can be made and additional tools that can be used to improve the warehouse picking process.
3. Optimise your warehouse
With so many stages of the overall order fulfilment process happening simultaneously, you will need to continuously optimise your warehouse to improve the layout for more efficient picking routes, storage locations for each SKU and the handoff from picking to packing, and as you introduce new equipment.
4. Track your warehouse productivity
You’ll want to keep track of your warehouse productivity and understand how you can help your pickers. Distribution metrics ranging from inventory turnover, time to ship, total units in storage, average warehouse capacity used, and of course order picking accuracy should be monitored regularly with discussion had around how to improve upon each one.
5. Outsource fulfilment to a 3PL
Outsourcing fulfilment is the most hand-off way to improve warehouse picking as you don’t have to manage picking process improvements yourself. Even if you’re doing in-house fulfilment, outsourcing certain aspects (e.g., only direct-to-consumer fulfilment) while keeping other processes in-house (e.g., B2B ecommerce orders) lets you open up space in your warehouse without quickly outgrowing it.
“It’s a pain to pick, pack, and print the labels, and manage the storage. It would be a huge stress for us to do it ourselves, but the fact that ShipBob takes care of it all, both the savings in costs and time, is invaluable to our business.”
Nikolai Paloni, Co-Founder of Ombraz Sunglasses
Third-party logistics (3PL) providers like ShipBob are experts at fulfilment processes including warehouse picking and can let you store your ecommerce inventory in their warehouses, where their team takes care of the rest. Learn how one $20 million ecommerce brand scaled fulfilment from their own large warehouse to ShipBob here.
“We see outsourcing fulfilment as a cost-savings that will save you money in the long run. 3PLs negotiate rates, give you back all the time you’d spend on fulfilment, and reduce the errors you’d make.
We looked into opening our own warehouses and hiring employees, but couldn’t come close with what 3PLs charge for picking, packing, and shipping.
We’d also be worried about scheduling fulfilment shifts, ordering boxes and shipping labels, and dealing with the extra headaches of running logistics.”
Gerard Ecker, Founder & CEO of Ocean & Co.
How ShipBob’s warehouse picking methods improve order fulfilment
ShipBob is a leading 3PL that provides fulfilment services and software for ecommerce brands. As soon as an order is created or imported into your ShipBob dashboard, it is automatically sent to one of our fulfilment centres with your inventory to be fulfiled.
We assign orders to our picking team, who receive a picking list of the items, quantities, and storage locations at our facility to procure and count to complete their pick.
ShipBob customers can upload photos of their products for the picking and packing teams to see and validate upon fulfilment to reduce the possibility of an order being picked or shipped the wrong way. You can even edit an order in ShipBob until it is picked in the event that a customer wants to change something after they place their order.
ShipBob’s facilities are optimised to efficiently fulfil orders by using methods such as batch picking. The efficiencies we gain can be passed back on to the customer in the form of cost-savings.
Proprietary WMS system
ShipBob has created our own WMS system that’s used in our entire network of fulfilment centres. It helps us make picking operations more efficient and also lets customers have a transparent view of what is happening with their inventory in our warehouses.
“With ShipBob, you see exactly what is picked. You can outsource your fulfilment while still maintaining full control. ShipBob owns the entire stack: inventory and order management system, warehouse management system, and their fulfilment centres.”
Gerard Ecker, Founder & CEO of Ocean & Co.
Improve warehouse picking efficiency with a WMS
To optimise your warehouse’s picking routes, you need the right tech in place. ShipBob has a best-in-class warehouse management system (WMS) for brands that have their own warehouse and need help managing inventory in real time, reducing picking, packing, and shipping errors, and scaling with ease.
With ShipBob’s WMS, brands with their own warehouse can even leverage ShipBob’s fulfilment services in any of ShipBob’s fulfilment centres across the US, Canada, Europe, and Australia to improve cross-border shipping, reduce costs, and speed up deliveries.
Request ShipBob’s WMS pricing here.
Find ecommerce operations jobs
ShipBob launched the Ecommerce Operations Job Board to help people find the best jobs and hire top talent for e-commerce and warehouse operations, supply chain, logistics, fulfilment, and shipping roles. Post a job here, or browse jobs here.
Conclusion
The bottom line is, as ecommerce continues to grow, the need for better warehouse picking systems has risen. Warehouse picking is an integral part of the ecommerce fulfilment process, and order accuracy is greatly dependent on the efficiency of warehouse picking, which in turn impacts your brand’s reputation and relationship with your customers.
One of the best ways to improve warehouse picking is to pair up with a reliable 3PL provider, like ShipBob, who can take on all of the work for you.
By partnering with ShipBob for fulfilment, you can work with a logistic expert, grow into our fulfilment network over time, take advantage of economies of scale, utilise our geographic footprint, gain deep insights into your retail supply chain using our analytics and reporting tools, and focus on growing your business.
Interested in seeing if ShipBob would be a good fit for your business? Request a quote below to start the conversation.
Warehouse picking FAQs
Warehouse picking is an integral part of any ecommerce brand’s order fulfilment process. Some questions that arise frequently about warehouse picking include:
1. What is warehouse picking?
Warehouse picking is an order fulfilment process where item(s) from a customer order are retrieved from their inventory location(s) in a fulfilment or distribution centre such as in a bin or on a shelf or pallet. Warehouse picking is the step that occurs before products are packaged and shipped out to their destination.
2. How to do picking in warehouses?
There are many strategies for picking in warehouses, which include batch picking, wave picking, zone picking, and discrete picking. The best strategy for your warehouse picking setup will depend on the order volume running through your warehouse, the total number of SKUs in storage, your total number of pickers working at the same time, the type of facility you have, and the inventory management system or other technologies you have at your disposal. The different picking methods we’ve mentioned all have their own advantages and drawbacks; companies need to determine which picking strategy meets their specific needs.
3. How to improve warehouse picking speed and accuracy?
The success of your warehouse picking strategy and the pick and pack methods you should use depend on your inventory storage and WMS. As you grow, you’ll have more opportunities to optimise and improve efficiency. For example, organising your inventory to make frequently ordered items more accessible for a picker and other improved warehouse layout options can cut back on operating costs and save time.
4. What is voice picking in a warehouse?
Voice picking is a method of warehouse picking, where pickers are equipped with a headset and microphone so they can easily communicate with the warehouse manager about picking details. Some systems are connected with an automated management system, which eliminates the need of a human to be present on the other end of the line. Similar to other wearable warehouse picking options, voice picking has proven to be a time-efficient method and it also cuts down the likelihood of picking order error.
