Warehouses tend to encounter many challenges during the order fulfillment process, this is because they are not using the most suitable picking and packing techniques. Using the correct picking and packing methods is essential for your business to have smooth, quick, and accurate operations. Understanding what works best for your warehouse plays a key role in reducing costs, increasing efficiency and improving customer satisfaction.
Understanding the Picking and Packing Process
The first step of optimising your picking and packing procedure is understanding what it is: the picking and packing process is the action of collecting ordered items from the inventory and preparing them for shipment. This operation is one of the first within the order fulfilment journey and it is crucial that it runs smoothly in order to maintain an efficient environment and high order rate for the company. It all begins with locating and picking the stock without error and then packaging your items in a coherent and secure manner. Giving your products the highest level of protection and care is what will ensure they stay damage-free during transit and reach customers safely. Two things which will have positive effects on your business due to less money spent on replacing stock and happy customers.
What are the Main Challenges when Picking and Packing?
The picking and packing process can equate to up to 45% of a warehouse’s operations costs and so, having any inefficiencies occur within the procedure does not only have negative impacts on your order fulfilment rate but also on your warehouse’s profits. There are several challenges that your staff could face daily within the warehouse when picking and packing:
Inaccurate Inventory
Having inaccurate inventory is one way of asking for disasters within the picking and packing process. Not updating inventory data or having it checked for mistakes will lead to confusion within the warehouse. Even worse, your customers could be requesting products that are out of stock and unavailable, which will lead to disappointment, complaints, and a loss of consumers when they are informed that it is not possible for them to have what they ordered.
Increased Turn-Around Time (TAT)
Turn-Around Time within the warehouse represents the time it takes for operatives to pick, consolidate and package ordered items. TAT can elongate for a number of reasons for example – as previously mentioned – inaccurate inventory recordings, incorrect product placement, an unorganised warehouse, and inefficient picking methods. A slower turn-around time can result in a lower pick and pack throughput rate – meaning the number of units picked and packed during one standard working hour. Increased TAT delays order fulfilment and essentially, leads to lower customer satisfaction.
Missing Product Information
Product information data needs to be accurate at all times, if not it can lead to an unorganised warehouse, stressed staff and ineffective picking and packing procedures. Product information can be placed under the following categories:
- The average number of lines or units per order
- Total number of Stock Keeping Units (SKUs) and definitions of each one
- Product groups – not to be confused with SKUs – such as hazardous items or high-volume groups
- Products ordered most frequently with one another
- Dimensions and weight of a product
Having insufficient data within your warehouse has a negative effect on the picking process because – for example – you might have incorrect information about which products should be picked and packed together. Due to this misinformation, the stock will have to be picked and packed again, which as a result will increase picking/packing time and slow down the order fulfilment process. Other missed details such as misplaced data regarding the weight of items can lead to insecure and unsuitable protective packaging being used for stock, meaning your customer could potentially receive damaged produce. Thus, reducing customer satisfaction and increasing reverse logistics costs.
How to Overcome Challenges and Optimise your Pick and Pack Process
Incorporate Technology into Inventory Accuracy
Using technology whether on a tablet or on mobile within the warehouse can be incredibly beneficial for improving the accuracy of data. Inventory can be maintained more easily and efficiently with mobile technologies such as barcode or RFID scanners. Using manual techniques for data storage can cause mistakes in the information because of human error. Scanning barcodes or using RFID scanners is an almost error-free way of adding data to the system, which produces more accurate and trustworthy data within your storehouse. Alongside this, introducing a wireless system where your operatives are capable are communicating with the warehouse inventory system can allow for information to be updated in real-time. This will ensure that fewer orders have mistakenly sold out-of-stock products, speeding up the order fulfilment process and improving customer satisfaction. It also allows managers to have real-time visibility and so, have the ability to make more effective business decisions.
Organise your Warehouse
The best way to optimise your packing and picking process is to make sure your warehouse has an efficient layout and is well-organised. Popular ways of structuring a warehouse include placing top-selling products closest to packing stations, storing items that are usually paired together in one place or in neighbouring zones, and arranging your inventory in order of popularity.
Another methodical storage strategy is known as ‘slotting’. Slotting involves determining where items should be stored in the picking area based both on their popularity and their proximity to the starting point of picking in an effort to reduce travel and turn-around time. As well as organising items in terms of popularity, you also don’t want to place the stock in awkward positions or somewhere where your staff have to reach up or bend down to collect the item. This will decrease picking time and increase the morale of your operatives as they don’t have to stretch and potentially cause harm to themselves when they have found the products they need. Don’t forget to space stock out within your warehouse, this will reduce congestion and the number of accidents that could occur.
Every storehouse is different, so arrange your warehouse in a way that makes the most sense for your business, whether this is done by following the ABC Analysis or sectioning stock by SKUs. There is a direct correlation between an efficient layout and turn-around time. An optimised warehouse reduces the lead time of the pick and pack process, improves productivity and lowers operational costs.
Invest in Flexible Packaging Options
When considering the appropriate way for your staff to package items, you need to think about complexity and efficiency. One method of fixing both these problems is by using adjustable packaging. These types of boxes have creases on the inside so you can quickly cut them down if the contents inside do not reach the top of the parcel. This means that each adjustable box can be used for a wide range of items and won’t increase your void-fill requirements. Optimising your packaging process and making smart decisions about your packaging material can help you control costs, alongside improving the speed of transport and shipping. It can also save your company money on freight, damage, inventory carrying, labour and equipment. All of this will have a positive effect on your order fulfilment process and as a result, improve customer satisfaction and the economic growth of your business.
Optimising your warehouse’s picking and packing process will do nothing but bring benefits to your company. It will help managers make more effective business decisions, increase the order rate, improve order fulfilment speed, and please customers. We hope that this advice provided by BiDGUG helps your warehouse reach its full potential. If you would like to read our other blogs, you can do that here.