As the pressure for quicker and more efficient deliveries increases, businesses must continuously optimize their operations to meet increasing demand. One proven strategy is multi-order picking, an order-picking method that consolidates the picking process by allowing warehouse workers to fulfill multiple orders simultaneously.
In this article, we’ll dive into how multi-order picking optimizes warehouse operations, the benefits it provides, and how to successfully implement it.
What is Multi-Order Picking?
Multi-order picking is a warehouse picking method where a single picker retrieves items for multiple orders in one trip. Instead of fulfilling one order at a time, pickers collect products for several orders simultaneously, consolidating their work into fewer trips around the warehouse. There are 2 main types of multi-order picking methods:
- Cluster picking - gathering items for several orders in one route.
- Batch picking - collecting the same SKU for multiple customers in one trip.
These methods are highly effective in warehouses with diverse SKUs and high order volumes. By optimizing the route and consolidating multiple orders, multi-order picking can reduce walking distances by up to 50% and ensure efficient use of labor.
Choosing Between Order-Picking Methods
When deciding between single-order and the type of multi-order picking, the choice depends on the scale of operations & the type of orders being fulfilled.
If most orders contain many SKUs and items are close to each other, single-order picking may be more efficient. However, if orders contain only a few items, multi-order picking can save a lot of time by allowing pickers to gather items for multiple orders in a single trip thus significantly reducing walking distances on the warehouse floor.
Another essential factor to consider is the sorting process. If sorting the items after picking takes too much time or causes errors, the efficiency benefits may be lost with batch picking, making cluster picking more efficient. In cluster picking items are picked for multiple orders simultaneously and grouping them into clusters and using a cart or tote system to keep them organized.
The success of multi-order picking depends on several variables, including the range of products, the number of SKUs per order, the size of the warehouse, and the number of pickers.
Analyzing the Process for Multi-Order Picking
Before implementing multi-order picking, it’s important to analyze order fulfillment processes before determining if this form of picking is appropriate for your warehouse operations. Key factors to consider include:
- Current travel distances for pickers, and how many packages do they pick per hour?
- Is the product range suitable for multi-order picking within your available time frames?
- Are the order sizes and volumes large enough to justify multi-order picking as a more efficient option?
For warehouses handling many small orders with fast delivery expectations (like same-day delivery), multi-order picking might not be worth it. However, for larger operations with many pickers, investing in multi-order picking can lead to significant efficiency gains and a quick ROI.
The Benefits of Multi-Order Picking
Warehouses that adopt multi-order picking gain significant advantages by reducing inefficiencies inherent in traditional order picking methods like piece picking. Let’s explore how this method optimizes the order fulfillment process:
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Reduced Travel Time
Instead of returning to a packing station after each order, pickers follow an optimized path to collect items for several orders at once.
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Workforce Productivity
Pickers complete more orders in less time. During peak periods, this method allows warehouses to handle higher order volumes without needing extra labor, making it ideal for scaling operations.
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Reduced Labor Costs
Fewer pickers are needed to fulfill the same number of orders.
Limitations of WMS in Picking Operations
WMS like SAP EWM, Manhattan, Blue Yonder (formerly JDA), NetSuite, and others are the central element in warehouse & supply chain operation management designed to cover a broad range of functionalities and features to manage all aspects of warehouse operations. They manage everything from the moment goods arrive in a warehouse to when they are shipped out. However, they try to address so many different needs that they often fall short in providing specialized, intelligent, and optimized solutions for specific tasks within those operations.
In picking operations basic business rules often govern the process. These rules typically focus on 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 WMS. This gap can limit warehouse performance and lead to higher operational costs, prompting companies to seek external solutions beyond their current WMS capabilities.
Optimizing Order Fulfillment in Practice
Bleckmann, a leading fashion & apparel 3PL is a great example of how businesses can benefit from an extra intelligence layer on top of their existing systems, resulting in an up to 45% decrease in walking distances by implementing smarter multi-order picking.
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.
About Optioryx
At Optioryx, we are filling the intelligence gaps of warehouse management systems by providing AI powered plug-ins to drive operational efficiencies without the need to change the way of working.
In warehouse picking operations this is done by leveraging digital twins to optimize item picking and reduce walking distances by up to 50%, increasing pick-per-hour rate, increasing picking speed and ultimately boosting productivity and throughput. Learn more about the WMS picking add-on.