Not-so-long-ago warehouses with lower order volumes and simpler layouts could rely on manual picking and pathfinding methods to meet their needs. This approach was sufficient for warehouses with a low volume of orders, small to medium warehouse layouts, and a small number of SKU types.
With the increase in order volumes, warehouses often are not aware of how big of an impact their warehouse picking performance has on their operations. As a result, warehouses miss out on the optimization potential which often is at their fingertips.
Impact of Picking Operations on Order Fulfillment
Why should you care about picking operations? The biggest factor affecting order fulfillment time is the picking process itself—specifically, the time it takes workers to travel between item locations to retrieve orders. Research shows order picking has been identified as the most labor-intensive and time-consuming activity for most warehouses, which accounts for 55% of the total operating expenses.
In many warehouses, the path a warehouse picker takes is either based on intuition or through basic Warehouse Management System (WMS) logic, which is often insufficient to ensure optimal efficiency. As the number of items to pick increases, the time and effort required also grow, leading to more inefficiencies as orders get larger.
By reducing travel time through better picking approach, warehouses can increase the number of orders fulfilled per shift, all without raising labor costs.
What is Picking Optimization?
Picking optimization focuses on minimizing the time and effort warehouse workers spend walking to retrieve items. This can be achieved through strategies such as choosing the right order picking method, shorter pick paths, order grouping, and strategic item placement.
For example, the optimization of pick paths—especially in multi-order picking—can reduce travel distances by up to 45%, leading to more efficient workflows. Warehouses that implement picking optimization strategies see direct improvements in both productivity and accuracy, as workers can focus on picking rather than traveling long distances across the warehouse floor.
Currently, picking optimization in warehouses is typically achieved through either complete automation or using WMS logic. Full automation, while highly efficient, is only feasible for a small number of businesses due to the significant investment required and the need for an order profile that supports such automation (e.g., uniform item sizes or predictable order patterns). For most warehouses, optimization relies on WMS logic, which uses fixed picking sequences.
Limitations of WMS Capabilities in Optimizing Picking
Warehouse management systems (WMS) like SAP EWM, Manhattan, Blue Yonder (JDA), NetSuite, and others cover a broad range of functionalities and features to manage all aspects of warehouse operations. However, by trying to address so many different needs they often fall short in providing specialized, intelligent, and optimized solutions for specific tasks within those operations.
In picking operations basic picking rules often govern the process. These rules typically focus on fixed sequences, fundamental criteria and do not account for nuanced factors that could boost efficiency and minimize the walking distance covered by pickers.
As a result, there is often untapped potential for optimizing picking processes within even the top WMS. This gap limits warehouse performance and leads to higher operational costs, prompting companies to seek external solutions beyond their current WMS capabilities.
Ways of Improving Picking Operations
- Choosing the Right Picking Method: Select a picking method tailored to your specific order profile, volumes, and warehouse layout. The optimal method may vary depending on whether your warehouse handles a few large orders or many smaller ones. Assess different picking strategies, such as single-order picking or multi-order picking (cluster or wave picking), to find the most suitable approach for your operations. Check out our guide to order picking methods
- Picking Path Optimization: Create the shortest and most efficient paths for pickers. Avoid letting pickers rely on intuition, which often results in longer, inefficient "snake-like" routes. A well-optimized path reduces walking time and allows pickers to retrieve items more quickly, leading to faster order fulfillment.
- Order Grouping: Group similar orders that contain items stored near each other in the warehouse into a single pick route. This consolidation enables pickers to collect items for multiple orders in one trip, minimizing back-and-forth walking.
- Slotting Optimization: Place frequently picked items closer to packing stations or in easily accessible areas within the warehouse. This strategic arrangement reduces the distance pickers need to travel.
Benefits of Optimizing Picking Efficiency
- Reduced time & energy per pick: minimized travel distances lead to less time and effort spent retrieving items
- Increased pick-per-hour rate: workers complete more picks in the same time, boosting individual productivity
- Faster order fulfillment: shorter picking paths = quicker order processing
- More orders fulfilled with the same resources: handle higher volumes without needing additional staff or equipment
- Improved order accuracy: more structured picking operations
- Immediate productivity for new employees: enable new & temporary workers to reach high productivity levels from day one, reducing training time
- Boosted overall warehouse productivity: faster, more accurate, and efficient picking translates into productivity gains for the entire operation
Optimizing Picking in Practice
Optimizing picking operations doesn't have to be overly complex. Significant improvements can be achieved by enhancing existing systems with smart add-ons. A great example of this is Bleckmann, a leading 3PL in the fashion and apparel industry. By adding an intelligence layer on top of their current systems, they were able to reduce walking distances by up to 45% through the implementation of smarter multi-order picking strategies.
Optioryx’s smart sequencing solution for multi-order picking works by calculating optimized walking routes for order pickers on the warehouse floor. Using a combination of artificial intelligence (AI) and data analytics, the solution calculates the optimal sequence in which order pickers should collect items in the picking area. In many cases, this allows pickers to significantly reduce their walking distance which is especially helpful in managing the high order volumes that are common during peak periods such as Black Friday.
“Smart sequencing works alongside existing warehouse management system (WMS) to automatically generate a customized route that’s specific to each pick list as soon as the order picker is ready to start walking,” explained Bart Gadeyne, Founder and CEO of Optioryx. Read the full success story here.
Which Companies Benefit from Optimizing Picking Operations?
Picking optimization is most impactful for high-volume operations, such as e-commerce, retail, 3PL, fashion, and manufacturing industries. These businesses often deal with large order volumes and need to streamline picking processes, whether for single or multiple orders at a time.
However, any company, regardless of size or industry, can benefit from picking optimization software. Even businesses with moderate order volumes can improve labor efficiency, cut operational costs, and enhance order accuracy, making this a valuable tool for boosting overall performance and the bottom line.
Simulate your optimization impact in picking operations!