Order Picking Methods:
Finding the Right Strategy for You
Order picking is widely reported to account for 50% to 55% of total warehouse operational costs. Identifying the right picking strategy can have a significant impact on the bottom line.
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Why is choosing an order picking strategy so important?
An integral process in warehouse management, the speed and accuracy of order picking is essential to achieving seamless workflow and higher level business objectives including productivity, customer satisfaction, and ultimately profitability. Uncertain labor and increasing warehouse operation costs prioritize effective resource management of people and processes. Inefficient order picking processes waste valuable time and resources, working against warehouse leaders’ strategies and making operational goals unattainable or expensive to achieve.
Order picking is widely reported to account for 50% to 55% of total warehouse operational costs. Consequently, identifying the right picking strategy can have a significant impact on the bottom line, with the potential to increase both warehouse productivity and profitability. Key performance indicators (KPIs) such as throughput, order accuracy, and order cycle time should be set and tracked, making adjustments as needed.
- Reduce cycle time
- Increased and sustained order accuracy
- Minimal inventory damage/loss
- Higher customer satisfaction
- Maximize human productivity safely
- Minimize non-value-added activities
- Size of facility
- Product type and quantity of SKUs
- Order to Ship Service Level Agreements (SLAs)
- Order Profile and Volume