5 order-picking methods to boost your supply chain

Order preparation accounts for almost 60% of operating costs in traditional warehouses.

Companies have had to adapt their methods and tools to meet changing customer expectations and survive in a highly competitive environment.

Because order preparation has a major impact on a company's productivity and profitability, here you will find 5 methods and tools to help you become more efficient and improve your quality of service.

See all software Stock Management

What is order picking?

Order picking is the logistical operation of taking products from a storage area and putting them together, in response to an order form, in preparation for dispatch to a customer.

It is mainly used in the industrial sector (automotive, pharmaceuticals, etc.), but also in the commercial sector (supermarkets, e-commerce, etc.), where storage and distribution are involved.

This operation is carried out by an order picker.

The order preparation stages

1. Picking: the collection of items from their storage location, following the customer's order and the generation of a picking order.
2. Sorting : identifying and collecting items for reconstituting orders and organising packages.
3. Packing: packing units, parcels or pallets, to facilitate handling and transport operations.
4. Pre-shipment checks: the order picker checks the weight of the completed unit and scans the label to ensure the shipment can be traced.

💡Example of a complete order preparation cycle, from online customer order to order tracking:

The 5 key order-picking methods

Method ^no 1: Picking by item

This is one of the most common order picking methods.

The process is fairly simple: when an operator receives an order, he moves around the warehouse to collect all the items ordered. When they have finished, they start again with another order.

☝️Cette works very well in small warehouses , but is less effective for larger warehouses because of the time lost in travelling compared with other methods.

Method ^no 2: Group or batch picking

This method is based on the fact that the same person prepares several orders at the same time. In this way, the operator saves time: if he finds the same item in several orders, he picks the total quantity directly, thus saving time.

☝️En In the case of large orders, the software groups the order items by reference. A sorting operation is then necessary.

Method ^no 3: Zone picking

Here, the orders are organised into well-defined zones , and one or more operators are responsible for preparing them (but only for each zone).

It's the same principle as batch picking, except that the order items are grouped and sorted according to the different storage areas, not according to product type.

☝️S There are items from several zones, so once one zone is finished, workers move on to the next.

Method ^no 4: Wave picking

Also known as Wave Picking, this process combines the use of 2 recognised methods:

Batch picking
Batches of items are grouped together according to :

• their shipping priority,
• their transport and/or customer route
• the number of orders,
• their composition
• and the workload of the operators.

Picking by zone
To avoid overcrowding or excessive traffic in the aisles of the warehouse, order groups are assigned to pickers according to the location of the goods.

Method ^no 5: Picking by combined order system

In warehouses equipped with the most advanced systems, picking is often done by combination.

The process is relatively simple: the order is placed by zone, and in the same zone the operator carries out batch picking, which means that he or she picks several batches of orders at the same time in the same zone.

BONUS - Our 4 tips for improving order picking

1- Get organised

• You manage and monitor your stocks scrupulously so that you know your capacity and can anticipate demand according to your forecasts.
  
  
• Stock locations are organised according to order frequency. For example, best-sellers are stored in the nearest and most accessible locations. This practice is called slotting. What's more, you'll improve your warehouse management!
  
  
• Your teams have areas dedicated to order picking, delimited, tidy, secure and close to the storage areas and tools they need.
  
  
• Order preparation processes are clear and communicated to all stakeholders, and ideally mapped out, making it easier to work together and to integrate and train future employees.
  
  
• You are careful when planning order processing and communicating delivery dates to customers, to avoid errors caused by rushing to prepare orders.

2 - Choose the right picking method

By acting on two levers of logistics picking, namely limiting movements and facilitating handling, you :

• Not only do you gain in terms of order preparation time,
• but you'll also keep your workforce in good health.

Choosing the right picking method is essential. You can choose between the 5 methods presented above and complement them with different picking and item selection techniques.

Item selection methods

• FIFO (first in first out) selection , to avoid holding stock whose references may change and become obsolete;
• FEFO (first expired first out) selection , to dispose of perishable goods according to use-by dates.

Order preparation methods

• Pick then pack : this involves picking several items and transporting them to a sorting and packaging area at the end of the line.

  You handle the picking of several orders at the same time (mass picking or wave picking);

• Pick and pack: preparation is done on an order-by-order basis, when there are only a small number of orders.

  Using a list of order items, a parcel is routed to several successive picking zones, where it is completed by different pickers each time. This requires dynamic conveyor systems linked to the IT system;

• Pick to belt : a conveyor transports the products to the sorting area, for large or bulky orders.

☝️ If several operators are working on different items belonging to the same order, there are 2 possibilities:

• either they take it in turns to complete the box, in which case we talk about successive picking;
• or they pick the items at the same time and send them to a common area for packing, in which case the preparation is processed simultaneously.

3 - Choose the right guidance mode

The picker is assisted in his picking operations by different guidance modes such as :

• The label list to find out :
  • order of priority,
  • the location of the picks to be made,
  • the type of product and packaging,
  • customer information
  • the destination, if required (loading bay within the warehouse);
    
    
• The mobile digital terminal, equipped with a scanner and linked to the warehouse system, to obtain information on the picking address and the quantity of parcels, and to update the data in real time;
  
  
• Radio terminals with headphones (pick by voice or voice picking) to receive instructions hands-free, and validate steps using a microphone;
  
  
• Pick by light or put to light: digital displays combined with indicator lights to show the location of products to be selected; for example: Green light: the product is available. The display shows 2: there are 2 items left, etc.
  
  
• The order picking trolley with a weight or light control device, to ensure that items are placed in the right place and in the right number.

☝️ The terminal can often read barcodes or RFID (radio frequency identification).

4 - Use the right order preparation tools

For automated stock management connected to your accounting, e-commerce and CRM software, there are software packages that are essential in an omnichannel distribution strategy.

Among their advantages, they enable you to manage and track :

• Merchandise movements, inbound and outbound flows,
• stock updates and automatic replenishment operations,
• creation of product sheets and barcodes,
• setting up a stock alert system to prevent stock shortages,
• remote management of several warehouses, etc.

Selection of order preparation software :

See all software Stock Management

Order preparation in brief

The major challenges of order preparation are :

• Stock management 📦
  • avoiding errors leading to stock discrepancies (bye bye overstocking),
  • reducing the costs associated with logistics operations,
  • saving storage space,

• Customer satisfaction 😄
  • fewer errors when putting together parcels and addresses,
  • fewer lost parcels thanks to goods traceability,
  • good condition of goods;

• Quality and safety for consumers and employees ⛑
  • compliance with hygiene and safety rules (separation of preparation of toxic and food products, etc.) ;
  • accident risk prevention (ergonomics of workstations, no heavy loads at height, etc.).