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Introduction
The efficiency of picking processes in warehouses is a critical factor in the success of modern supply chains. As the demand for faster order fulfillment continues to rise, driven by factors like eCommerce and omnichannel retailing, warehouses face increasing pressure to optimize their picking operations. The global warehouse order-picking market size, which was estimated at USD 9.19 billion in 2023, is expected to grow at a CAGR of 10.8% from 2024 to 2030.
Inefficient picking can lead to delays, errors, and reduced customer satisfaction. Therefore, understanding the challenges associated with warehouse picking and implementing appropriate solutions like warehouse management systems is essential for businesses seeking a competitive edge.
Current Challenges in Warehouse Picking
Labor shortages and high turnover rates: Labor shortages and high turnover rates negatively impact productivity and customer satisfaction. Order fulfillment gets delayed and hiring and training new staff significantly improve costs. If not addressed promptly, this issue can disrupt the entire supply chain, affecting overall business efficiency and profitability. A study found that around 60% of respondents find maintaining labor efficiency a top challenge.
Rise in order complexity: Increasing order complexity is a major challenge in warehouse picking. E-commerce and omnichannel fulfillment demand faster turnaround times and a wider variety of products. Workers have to pick smaller quantities for multiple orders. This requires adequate labor, advanced picking methods, and flexible warehouse layouts. A WMS software can help by offering a pick sheet containing all the order complexities, promoting efficiency in handling diverse orders and meeting customer expectations.
Accuracy demands and error reduction: Picking errors can severely affect business productivity and cause financial losses. Sending wrong items or incorrect quantities to customers leads to returns and customer dissatisfaction. Advanced scanning technologies as offered by warehouse management systems, employee training, and proper checks and control measures are essential to improve accuracy and reduce errors.
Technology Solutions for Enhanced Picking
Technology solutions like warehouse management systems can significantly enhance picking efficiency and accuracy. These solutions streamline processes, reduce errors, and improve overall productivity in warehouse picking operations. Some of them are discussed below:
Pick-to-light systems: One of the popular technology solutions that uses LED lights to guide workers to the correct storage location. After that, the corresponding light illuminates, indicating the quantity to be picked. Integrating this method into WMS software helps improve efficiency. This technology is particularly effective in high-volume picking environments where speed and accuracy are critical.
Voice-directed picking: This warehouse management software technology uses audio commands to guide pickers through the warehouse. A wearable device, such as a headset with a microphone, instructs workers on which items to pick, where to find them, and in what quantities. This hands-free approach eliminates the need for paper-based picking lists, and improves accuracy and efficiency, especially in noisy environments involving complex picking routes and multiple languages.
Mobile scanning devices and wearables: While mobile scanners allow pickers to scan barcodes or RFID tags directly at the storage location, wearables such as smartwatches provide real-time information and notifications. You can easily integrate these solutions into your WMS software to eliminate manual data entry, and improve accuracy and worker mobility.
Automated Storage and Retrieval Systems (AS/RS): AS/RS solutions that automate the storage and retrieval of goods are often part of advanced warehouse management systems. They use robotic arms or cranes to move pallets or individual items between storage locations and picking stations. AS/RS helps improve storage capacity, reduce labor costs, and increase picking efficiency, especially in high-density warehouses with fast-moving inventory. AS/RS can increase order-picking accuracy to around 99.99%, helping avoid possible delays in product retrieval.
Optimizing Warehouse Layout for Efficient Picking
Using WMS software to optimize warehouse layout takes you a step closer to efficient picking. It helps you to strategically place high-demand items closer to picking stations, organize products logically, use clear labeling, etc. This significantly reduces picking times and improves overall productivity. Some of the ways are discussed below:
ABC analysis for product placement: ABC analysis is a valuable tool for optimizing warehouse layout. This feature of warehouse management systems can be used to categorize products into three groups (A: high, B: medium, C: low) based on multiple criteria. For example, their annual sales value or combination of sales value and frequency of ordering (demand). Accordingly, you can strategically place high-value (A) items closer to picking stations for faster retrieval, reducing pickers' travel time and improving overall efficiency. ABC analysis can also be done based on the product pairing method by placing frequently ordered products closer to each other. Another option could be the demand-based replenishment method to replenish the picking locations for high-demand items.
Zone-picking strategies: A WMS software feature that divides the warehouse into specific zones or areas based on product categories or usage frequency. It also shows the fastest route and which zone the product is stored. This allows pickers to focus on a particular zone, reducing travel time. Zone picking is particularly effective for warehouses having high-volume, fast-moving items.
Optimizing travel paths: Optimizing travel paths and reducing walking distances is essential for an efficient warehouse layout. By carefully considering the placement of storage locations, picking stations, and aisles, you can minimize the distance pickers need to travel to retrieve items and optimize the available space. This reduces labor costs and reduces the risk of errors. Warehouse management systems offer real-time data to help you optimize travel paths.
Advanced Picking Strategies
Let’s discuss some of the picking strategies supported by warehouse management software that can enable the 3PL logistics players to optimize the picking processes in the warehouse, reduce travel time, and improve overall picking productivity.
Batch picking: Batch picking involves picking multiple orders simultaneously by grouping items based on their destination or storage location.
Wave picking: Orders are grouped into batches or waves based on similar characteristics, such as delivery date or customer location. This allows for efficient planning and allocation of resources.
Cluster picking: This advanced strategy of warehouse management software groups items based on their proximity in the warehouse. This reduces the number of times pickers need to change aisles or zones. Cluster picking is particularly effective in warehouses with a high degree of product variety and irregular storage patterns.
Pick and pass: This strategy involves multiple pickers working together in a single order. One worker picks items while another passes them along to the next worker, creating a continuous workflow. This increases picking speed and efficiency, especially for large or complex orders.
Data-Driven Approach to Improve Picking Processes
Did you know order picking can consume around 55% of a facility’s total operation costs? A data-driven approach provides valuable insights into picking process performance, identifies areas for optimization, and enables evidence-based decision-making. This leads to increased efficiency, reduced costs, improved accuracy, and better customer satisfaction.
While measuring Key Performance Indicators (KPIs), such as picking accuracy, order fulfillment time and labor productivity help quantify picking efficiency, warehouse management systems enable data analysis by providing real-time insights into KPIs and identifying areas for improvement. Organizations can implement continuous improvement methodologies like Lean and Six Sigma to analyze data from WMS software, identify root causes of inefficiencies, and implement targeted solutions. Warehouse management software helps by collecting and analyzing data on picking activities and supporting the implementation of data-driven initiatives to enhance picking efficiency and overall warehouse performance.
Conclusion
By leveraging technology solutions like WMS software, implementing advanced picking strategies, and following a data-driven approach businesses can significantly enhance picking efficiency, reduce costs, and improve customer satisfaction. Understanding this, 80% of organizations in warehousing, logistics, and retail are planning to invest in new technologies to stay competitive.
Organizations should also focus on human factors, including employee training, motivation, and ergonomics. These are equally crucial for a successful picking process. By adopting a holistic approach that incorporates these elements, businesses can effectively overcome the challenges of warehouse picking and unlock its full potential.
