Optimising your e-commerce business

Order picking is one of the most labour-intensive and costly activities in an e-commerce business. Speed is important: it is influenced by the design and layout of the warehouse and how you use available technology tools to facilitate picking. Choosing the right order-picking system is vital for optimising efficiency, reducing costs, and ensuring customer satisfaction.

The most common order-picking strategies

Many order-picking solutions are in use, but not all of them suit every type of business. A small, growing e-commerce business with a limited product range requires a different strategy from a distribution centre with high volumes and many SKUs. Consideration should be given to order volume, SKU diversity, warehouse layout, speed and accuracy requirements, scalability, cost, and technological compatibility.

These are the main methods:

1. Single-Order Picking

Key advantage: Simple, accurate.

Best for: Small operations, low order volume.

2. Batch Picking

Key advantage: Reduces the number of trips a picker needs to make, increasing efficiency.

Best for: E-commerce businesses with high order volumes and small, repetitive orders.

3. Zone Picking

Key Advantage: Improves picking efficiency by allowing multiple orders to be batch-picked in a specific zone, reducing the number of individual totes or containers moving through the warehouse.

Best For: Large distribution centres with many SKUs or a high volume of diverse products.

4. Wave Picking

Key Advantage: Organises the picking process based on urgency or delivery method, allowing for better management of complex order flows.

Best For: Warehouses with complex order flows and varying priority levels for different orders.

5. Automated Picking Systems

Key Advantage: Reduces the need for human intervention, making the picking process more efficient and faster.

Best For: High-volume warehouses with a wide range of SKUs.

6. Pick-to-Light Systems

Key Advantage: Minimises errors and reduces the time spent searching for items.

Best For: High-volume e-commerce operations.

7. Voice Picking

Key Advantage: Allows pickers to work hands-free, improving efficiency and requiring minimal training.

Best For: Warehouses with many SKUs where order accuracy is crucial.

8. Goods-to-Person (GTP) Picking

Key Advantage: Minimises travel time by bringing items directly to the picker, increasing productivity.

Best For: High-volume e-commerce warehouses where automation is heavily utilised.

9. Pick-to-box or carton

Key Advantage: Eliminates the need for repacking, making orders ready to ship immediately after picking.

Best For: Fulfilling small to medium-sized orders efficiently.

How to select the best strategy

Choosing the right picking system for your operations depends on various factors: order volume, the nature of the products, your warehouse layout, and service level agreements with business partners and customers.

Some practical steps:

•Analyse your order patterns, including the volume and the diversity of SKUs.

•Review the physical layout of your warehouse, including vertical storage potential, and choose a picking system that best utilises the available space.

•Determine whether speed, accuracy or a balance of both is more important.

•Select a system that can scale efficiently during high-demand periods, ensuring the system can manage growth without a drop in performance.

•Ensure that the picking system you choose can be integrated with your WMS and provides analytics capabilities for tracking performance and making data-driven decisions.

The goal is to find a solution that offers the best balance of performance and cost over time. Consider scalability and your business’s potential for growth. Whichever direction you are considering, The Supply Chain Consulting Group is here to help.

Book an initial meeting today at +44(0)1926 430 883 or email us at info@sccgltd.com

The post Optimising your e-commerce business first appeared on Warehouse & Logistics News.