Among the many factors that influence order fulfillment times & picking performance, the layout of a distribution center emerges as a pivotal element.
Studies have revealed that the distribution center layout alone can impact more than 60% [1] of the walking distance covered by workers engaged in picking operations.
However, the high cost of re-installing or expanding a warehouse or its layout isn’t always the simplest thing to do, making it a complex, long, and expensive endeavor.
We want to argue that distribution centers do not have to rework their entire layout to achieve these kinds of efficiency gains.
Instead, by leveraging technology and implementing optimization modules such as slotting strategies, picking methods, or picking optimization assistance, significant reductions in picking distances and increases in picking performance can be achieved.
In this article, we will explore how distribution centers can boost their order fulfillment processes without the need to replace their existing infrastructure, offering practical insights and solutions for optimization.
Warehouse Slotting
Warehouse slotting is the process of arranging inventory in the most optimal way for storage & picking by item size, weight, SKU velocity, order frequency, and other factors to increase the efficiency of order fulfillment.
Warehouse slotting can be addressed from two perspectives.
- Macro slotting: strategic organization of space, storage, aisles, pick & pack locations, and other structural elements to enhance efficiency and material flow within the facility.
- Micro slotting: micro slotting delves into the granular details of how products should be positioned within the designated areas.
- SKUs with higher demand should be more accessible,
- Heavier, or more unstable items should be placed lower, to increase the safety of the employee and inventory.
Both are indispensable components of distribution center optimization, working in tandem to create a highly efficient and organized warehousing system.
When planning the first steps in a warehouse slotting strategy a good starting point is applying the ABC analysis - listing all SKUs which have been ordered over a certain period and then allocating each SKU’s category to a certain location in a warehouse depending on its priority.
We’ve explored this topic in one of our earlier blog posts, discussing the advantages of slotting, and various slotting approaches, and offering a more detailed explanation of ABC slotting analysis.
A slotting strategy tailored to a distribution center's specifications can decrease picker travel time by up to 60%, decreasing the time to fulfill orders and increasing distribution center productivity.
Picking Smarter Ways to Pick
Picking smarter pick strategies and routes is all about decreasing the time it takes for items to go from the shelf into a shipping container.
What Is a Pick Distance
Pick distance is the travel distance a picker (worker, who is responsible for the item retrieval within order fulfillment) must undertake to retrieve items from distribution center shelves from one or multiple orders.
Picking methods
We’ve written a more in-depth article on the picking strategies & methods, discussing each type of picking method more in-depth and examining which warehouses would benefit the most from each method.
Picking Smarter Routes
Exploring more efficient routes and enhanced order picking involves incorporating two important optimization modules: (1) order clustering and (2) picking path optimization.
Order clustering
In conventional warehouse operations, pick distances are too long due to basic business rules of order item clustering and common snake-like pick paths.
Cluster picking is a method where multiple orders are consolidated into a single pick route. This allows pickers to do a single tour through a warehouse rather than multiple tours for each order.
Picking path optimization
Picking path optimization minimizes the distance traveled and the time required to pick items from storage locations and assemble them into customer orders.
However, most picking path optimization providers commonly do not consider factors such as clustering of orders.
By combining the two modules – order clustering & picking path optimization - pickers can efficiently handle multiple orders in a single pass through the distribution center.
This means fewer footsteps, faster order picking, and ultimately reduced order fulfillment time.
Cluster picking combined with picking path optimization can cut walking distances by up to 45%.
- Cut walking distances by up to 45%
- Increase pick density by 30%
- Decrease labor costs by 15%
- Increase warehouse productivity by 10%
Learn more about the intricacies of picking path optimization here.