Order Picking and Packing
Order Picking and Packing
Order Picking and Packing
Order picking and packing are two key processes warehouses use to fulfil customer orders.
This process involves retrieving items from their designated storage areas, often guided
by a picking list or electronic device, and consolidating them for packing and shipping.
This involves packaging items securely, often using appropriate materials such as boxes,
bubble wrap, or other protective measures, to ensure safe transportation and delivery.
Imagine you run an e-commerce business that sells a variety of products, ranging from
electronics to clothing. Efficient order picking and packing are essential for ensuring that
customers receive the correct items in a timely manner. Let's break down how this
process affects both customer satisfaction and cost savings:
Customer Satisfaction:
1. Let's say a customer places an order for a laptop, a pair of headphones, and a
backpack. If your warehouse staff efficiently pick and pack these items without
errors, the customer will receive exactly what they ordered, and they're likely to be
satisfied with their purchase experience. However, if there are mistakes in picking
or packing, such as sending the wrong item or forgetting an item altogether, the
customer's experience may be negatively impacted. They may have to go through
the hassle of returning incorrect items, leading to dissatisfaction and potentially
lost future business.
Operational Efficiency and Cost Savings:
2. Efficient order picking and packing contribute to streamlined warehouse
operations, leading to cost savings in several ways:
● Labor Costs: Efficient order picking and packing reduce the time and labor
required to fulfill orders. With optimized processes, your warehouse staff
can fulfill more orders in less time, allowing you to potentially reduce labor
costs or allocate resources to other areas of the business.
● Inventory Management: Accurate order picking and packing help prevent
errors such as stockouts or overstock situations. By maintaining optimal
inventory levels and minimizing the risk of stockouts, you can avoid lost
sales opportunities and the costs associated with excess inventory
storage.
● Shipping Costs: Properly packed orders reduce the risk of damage during
transit, minimizing the need for replacements or returns. Additionally,
optimizing order picking processes can lead to better route planning and
consolidation of shipments, reducing overall shipping costs.
During the industrial revolution in the 18th and 19th centuries, advancements in manufacturing
techniques led to the mass production of goods. This resulted in increased demand for efficient
order fulfillment processes to manage growing inventories and meet customer orders in a timely
manner.
Retailers and wholesalers played a significant role in shaping the practices of picking and
packing as they developed methods to organize, store, and retrieve merchandise within
warehouses and distribution centers. These establishments needed systematic approaches to pick
items from shelves or storage locations, pack them securely for transportation, and prepare
SLIDE 02:
POSTPONEMENT
delivery. This approach involves keeping products in a generic or standardized form for
The key principle behind logistics postponement is to minimize risk and maximize flexibility in the
supply chain by deferring product differentiation until there is more certainty about customer
can reduce inventory holding costs, mitigate the risk of obsolete inventory, and respond more
inventory and transportation costs. It can reduce the risk of misforecasts and ®nancial losses due
to obsolescence and package damage. Postponement can reduce the risk of loss. It can reduce the
risk of having the wrong product at the wrong place at the wrong time in the wrong condition. It
can reduce the need for unpacking and reworking product that is no longer suitable for a given
market
packaging until they are closer to the point of sale, allowing for customization of
special events.
Hewlett-Packard produces generic printers at its factory and distributes them to local distribution
centers, where power plugs with appropriate voltage and user manuals in the right language are
packed
might ship bulk chemicals to a distribution center, where they are later repackaged into
smaller containers that are suitable for end-user applications. This method is often used
Amazon
Amazon often delays the final packaging of products until orders are received to customize
packaging based on specific customer preferences. For example, customers can choose gift
packaging decisions until orders are placed, Amazon can offer a more personalized shopping
experience while minimizing packaging waste. They offer an option to customers to receive the
item in their original packing or add the Amazon packing with it. This saves them additional cost
of using resources and also adds to using eco friendly packaging methods
Labeling Postponement: Holding products in a generic state and applying labels, branding,
or other product information closer to the time of sale, allowing for flexibility in adapting
to changes in branding or regulatory requirements. Give example of Shan Foods, FMCG
Etsy
Etsy, an online marketplace for handmade and vintage goods, allows sellers to customize product
labels based on individual customer preferences. Sellers can include personalized notes or
branding materials with each order, which are often added just before shipping. This form of
labeling postponement enables Etsy sellers to create a more personalized and memorable
facilities.
2. Order Customization: When a customer places an order for a Tesla vehicle, they
have the option to customize various features and specifications through Tesla's
online configurator. Customers can select options such as battery size, paint
3. Production and Assembly: After receiving customer orders, Tesla initiates the
and modules.
IKEA
IKEA, a furniture retailer known for its flat-pack furniture, employs assembly postponement by
selling products in unassembled or partially assembled kits. Customers can select and purchase
furniture items online, and assembly is typically completed by the customer upon delivery. This
postponement strategy allows IKEA to reduce storage and transportation costs while offering
SLIDE 03:
3. Pick Items
- Warehouse workers pick items from shelves.
- Items are scanned for accuracy and inventory control.
Have you ever ordered something online and wondered how exactly it got to your house? You're
certainly not alone - people may shop online a ton, but the order fulfillment process is still a little
opaque. Online shoppers can go their whole lives without really understanding how items get
from Point A to Point B. And that's the way we like it!
SLIDE 04:
The discrete picking method is the oldest technique deployed on shop floors. It involves pickers
with pick lists going through the inventory to find selected items needed to fulfill an order. As
expected, this is the most inefficient method: the picker may have to tour the entire facility to
find individual items, even with an SKU system in place. Thus, it is generally used in small
warehouses or shop floors with a limited number of items. Alternatively, discrete picking is
employed in large warehouses where heavy-duty equipment or items are required to fulfill an
order. Discrete picking relies on manual carts such as shelf carts to aid the picker.
● Example: Etsy, an online marketplace specializing in handmade and unique items, may
employ discrete order picking in its warehouses. Each order is picked separately by
workers, who retrieve all items required for that specific order before moving on to the
next order. This method ensures accuracy and attention to detail for each order, aligning
SLIDE 05:
Batch Picking
Batch picking, also known as multi-order picking, involves picking multiple orders
simultaneously. Batches usually consist of about eight to 20 similar orders that are consolidated
into a single pick list. Orders that are batched together generally have several of the same items
or even extremely similar pick paths. This method is well-suited for businesses experiencing
increased order volumes or those with similar items in multiple orders.
Examples
To better understand the batch picking process, it can be helpful to consider an example. Imagine
two customer orders that need to be picked:
Customer A
Customer B
SLIDE 06:
Zone Picking
Zone picking, sometimes referred to as pick and pass, is one of several basic methods used in
warehouses to pick products to fulfill orders. Zone picking divides a warehouse into distinct
sections, or zones, where individual order pickers are stationed. Workers pick SKUs from only
the zones they are assigned to usually passing items to the next zone after picking until the order
Target use zone picking in their warehouses to streamline order fulfillment processes and
improve productivity.
To illustrate the difference, consider a customer’s order to a major retailer. The order includes:
In simultaneous zone picking, several workers will pick all the products in their relevant zones at
the same time. In other words, the pickers in zone one, two, three and four will each pick their
relevant item simultaneously, and then bring their item to the packing area.
SLIDE 07:
Wave Picking
Wave picking, or cluster picking, involves picking multiple orders across different zones
simultaneously. It involves releasing specific orders to the floor for fulfillment, based on a
common factor such as shipping date, like items, warehouse zone, etc. To do so, wave picking
focuses on when orders are picked. The result is that orders are grouped and then picked, but
only at certain times of day. Teams gain efficiency primarily by reducing (or eliminating) picker
idle time. In other words, a wave might not be scheduled until all orders up to a certain deadline
have come in, so pickers don’t have to spend time waiting for instruction.
Pre-wave picking is the work of scheduling the waves according to specific variables. As a
business processes orders, they must be logically grouped and scheduled. If they’re grouped by
shipping time, for example, picking must have enough lead time to pick the orders and get them
hand-held mobile scanners that provide digital pick lists and direct pickers to product locations,
■ Using a hand-held picking device, wave picking typically works like this:
1. A picker receives the pick list for 4-12 orders per wave.
3. Pickers are sent to each storage location in sequence, and the mobile device tells
the picker the SKU and quantity to pick. Pickers pull the designated product and
4. Pickers place the product in its appropriate tote and scan the tote’s barcode to
confirm. Pickers might also enter the quantity on the mobile device.
5. Pickers are then directed to the next pick and the process repeats until all orders
are complete.
■ Post-wave picking occurs after the items are picked. Often, orders are kept separate as
they’re picked; mobile scanners and discrete totes or cartons can make this easy. But if
orders are not separated, the product must be organized for sorting and packed for
shipping afterward. Scheduling waves must allow time for the added sorting and packing
step
IKEA, a global retailer of furniture and home goods, may utilize cluster picking in its e-
commerce fulfillment centers. Similar items are grouped together in storage clusters within the
warehouse (e.g., sofas, dining tables). Workers pick items for multiple orders from each cluster
● Zone-Batch-Wave Picking:
and wave picking. Orders are first grouped into waves based on criteria
like priority. Within each wave, orders are further divided into batches
within specific zones. Pickers then work through each zone, picking entire
assigned to specific zones within the warehouse (e.g., living room furniture,
bedroom furniture). Orders are batched together based on common criteria (e.g.,
delivery location, order priority) and grouped into waves. Workers then pick
items for multiple orders simultaneously within their designated zones and wave
assignments.
● Zone-Wave Picking:
through different zones of the warehouse to pick items for multiple orders
simultaneously within each wave. This method allows for flexible picking
assigned to specific zones within the warehouse (e.g., electronics, home decor).
Orders are grouped into waves based on common criteria (e.g., delivery location,
order type) and workers pick items for multiple orders within their designated
● Zone-Batch Picking:
of orders within each zone, streamlining the process and reducing travel
supplies, may employ zone-batch picking in its fulfillment centers. Workers are
assigned to specific zones within the warehouse (e.g., dog supplies, cat supplies).
Orders are batched together based on common criteria (e.g., delivery location,
order size) and workers pick items for multiple orders simultaneously within their
designated zones
SLIDE 09:
Boxes: Cardboard or corrugated boxes come in various sizes and styles. For example, a small
products like cosmetics, jewellery, stationery, food items might be packaged in a standard
shipping box, while larger items like appliances might come in custom-designed boxes with
beverages seen in grocery stores. The shrink wrap tightly holds the individual items together into
SLIDE 10:
Stretch Wrap: Pallets of goods in a warehouse are often wrapped with stretch film to secure the
items together. For example, pallets of boxes containing electronics might be wrapped in stretch
Dividers and Inserts: In the case of packaged electronics, foam inserts might be used inside
boxes to cushion and protect delicate components. For example, a laptop might come in a box
SLIDE 11:
Cushioning Materials: Bubble wrap is frequently used to protect fragile items such as
glassware or ceramics during shipping. For example, a set of drinking glasses might be
individually wrapped in bubble wrap before being placed inside a larger box for shipping.
Kitting: Kitting is a technique where different but related items are ordered, packaged and
shipped together as a single "kit." For example, a seller of auto parts could create a kit containing
everything customers need to overhaul the brakes on their cars. Often, warehouse workers
preassemble the kits so, as soon as orders are received, the company can ship them immediately.
This eliminates the need to individually pick, pack and ship each item.
SLIDE 12:
CURRENT TRENDS
Pick-to-Light:
Pick-to-light systems are technology that helps workers locate and pick items faster and more
accurately. Pick-to-light systems use LED lights and displays to indicate the location, quantity,
and sequence of items to be picked. Workers scan a barcode or RFID tag on a tote or carton, and
the system lights up the corresponding bins or shelves. Workers then pick the items and press a
button to confirm the pick and move on to the next one. Pick-to-light systems can reduce travel
time, errors, and fatigue, as well as enhance visibility and traceability. Start at 1:08
https://www.youtube.com/watch?v=2SQiNzTHVYU
https://www.youtube.com/watch?v=XS7DOprWCZQ
Voice Picking:
Voice-directed picking is a technology that uses speech recognition and synthesis to guide
workers through the picking process. Workers wear a headset and a mobile device that
communicates with the warehouse management system (WMS) and tells them where to go, what
to pick, and how to confirm the pick. Voice-directed picking eliminates the need for paper lists,
scanners, or keyboards, and allows workers to use both hands and eyes for picking. Voice-
directed picking can increase productivity, accuracy, and safety, as well as reduce training time
and costs.
https://www.youtube.com/watch?v=5xfeX0Ouefc
https://www.youtube.com/watch?v=frY6jcANpRk
SLIDE 13:
Robotic Picking:
Warehouse robotics refers to the use of autonomous robotic systems and automation
technologies to perform tasks within a warehouse or distribution center like picking, packing,
sorting, transporting items and storing goods.The individual items are gripped directly by a mobile
shelf robot. The robot is connected to the warehouse management system (WMS) or host (ERP
system) via WLANand receives the picking order directly from one of these systems. As a rule,
several picks are digitally compiled for a tour and processed independently.
● Collaborative robots that work alongside and share workloads with humans.
● Robotic arms that can pick, pack and move items with speed and precision.
● Automated storage and retrieval systems (AS/RS) that move through aisles and
retrieve items from shelves via a crane or lifter.
● Autonomous mobile robots (AMRs) that navigate through a warehouse via sensors and
on-board cameras, pick items or pallets off shelves, and transport them to the packaging
zone. They can manevour through the obstacles Enovironemnt is flexible
● Automated guided vehicles (AGVs) that can carry items along a pre-defined track, like
a wire embedded in the warehouse floor. They cant manevour through the obstacles
repetitive high volume tasks
https://www.youtube.com/watch?v=-k8coLHIK-k
There are two main types of automated storage and retrieval systems – horizontal carousel
modules and vertical carousel modules. A horizontal system uses a series of shelving units that
move on an oval track. Each compartment has shelves or bins to separate stock into organized
containers. Operators enter a bin number, part number, or location, and the carousel brings the
relevant unit to the staff member.
This automation of inventory control increases order picking rate and reduces picking errors.
This increases accuracy, reduces picking errors and retrieval time, all while increasing
productivity.
https://www.youtube.com/watch?v=pVIcjsh7JhM
Vertical Carousel Modules are a series of carriers attached in fixed locations to a chain drive.
Movement is powered by a motor, which sends the carriers in a vertical loop around a track in
both forward and reverse directions—similar to a ferris wheel. Goods are stored or retrieved
https://www.youtube.com/watch?v=2Uj7Tio7UsY
The most obvious difference is in the way the machines operate. Both units are rectangular in
shape, with horizontal carousels ranging from 19 to 153 feet long and vertical carousels
varying from 6 to 14 feet wide by 4 to 5 feet deep. Because both carousels are accessed on the
width dimension, vertical carousels are broad and shallow, while horizontal carousels are narrow
and lengthy.
Another significant difference is unit height: Vertical storage carousels begin at just over 7 feet
and can grow to 32 feet tall, whereas horizontal carousels begin at just over 7 feet and can grow
to 13.5 feet tall. Horizontal carousels are an excellent choice for rooms with ceiling heights
below 15 feet, but they can also be double (or triple) layered for higher ceilings, but more on that
later.
Size-
Items are stored on carriers that are 49 to 144 inches wide by 17 to 24 inches deep on vertical
storage carousels. The carrier is about 2 feet narrower than the whole unit, enabling room for
the track on both sides of the carrier. The carrier’s height can range from 8 to 19 inches. Carriers
can be partitioned further with additional shelves to accommodate smaller objects. Smaller parts
drawers.
SLIDE 14:
Wearable:
The visual cues provided by smart glasses and AR headsets not only improve health and safety,
but also help workers benefit from “vision picking.” For example, when a warehouse picker
reaches the desired pick location, a description of the required product and the quantity
needed would be displayed in the operator’s wearable glasses. This eliminates the need
to carry a pick list or handheld device, freeing up the operator’s hands for the actual pick
tasks.That is, picking orders via real-time information in their field of vision, thereby avoiding
the need to constantly look down at a device or pick list. Workers can also scan item barcodes
via the camera in the glasses or headset, plus they can also receive verbal instructions and issue
their own voice commands.
https://youtu.be/dIF3b7MN1To
https://www.youtube.com/watch?v=jEpjUHzswT4
Smart packaging
Smart packaging is a term that refers to packaging that has some form of intelligence,
functionality, or communication. Smart packaging can use sensors, RFID tags, QR codes, or
other technologies to monitor, track, or transmit information about the product, such as
temperature, humidity, freshness, location, or expiration date. Smart packaging can also use
materials that can change color, shape, or texture to indicate the product status, such as ripeness,
spoilage, or tampering. Smart packaging can improve customer experience, loyalty, and trust, as
well as reduce waste, fraud, and recalls. Amcor plc is a global packaging company. It
develops and produces flexible packaging, rigid containers, specialty cartons, closures and
services for food, beverage, pharmaceutical, medical-device, home and personal-care, and
other products. Food and Beverage:
● Nestlé
● PepsiCo
● The Coca-Cola Company
● Danone
● Mondelez International
● Unilever
2. Healthcare and Pharmaceuticals:
● Pfizer
● Johnson & Johnson
● Novartis
● GlaxoSmithKline (GSK)
● Merck & Co.
● Sanofi
3. Personal Care and Beauty:
● Procter & Gamble (P&G)
● L'Oréal
● Estée Lauder
● Colgate-Palmolive
● Kimberly-Clark
● Beiersdorf
4. Home Care and Cleaning:
● The Clorox Company
● Reckitt Benckiser Group (RB)
● Henkel
● SC Johnson
● Church & Dwight
● Ecolab
5. Industrial and Specialty Applications:
● BASF
● 3M
● Siemens
● Bosch
● Dow
● Saint-Gobain
6. Retail and Consumer Goods:
● Walmart
● Amazon
● Target
● Tesco
● Carrefour
● Alibaba Group
https://www.youtube.com/watch?v=spAH3IySwEA
https://www.youtube.com/watch?v=IHDhfRXrpaY
SLIDE 15:
Eco-Friendly Packaging: It includes packaging that is easy to recycle and made from materials
manufactured using minimal impact on energy consumption or natural resources. eco-friendly
packaging is made from recycled materials. It’s commonly referred to as sustainable or green
packaging too.
Once used, it breaks down into nutrient-rich soil that can fertilize home gardens or
farms. Ecovative offers alternatives to polystyrene, plastic, and styrofoam with their
renewable mushroom material.
Seaweed Packing
Notpla creates flexible pouches and packaging out of seaweed that are completely edible and
biodegradable in 4-6 weeks. Their material dissolves in water like a soluble film but has
strength for holding dry foods, sauces, condiments and more.
The seaweed packaging adds a burst of flavor when consumed. Notpla offers a plastic-free
biodegradable solution for single-serve liquids and powders. Their material disappears
without leaving microplastics behind.
Water-Soluble Packaging
Water-soluble packaging is designed to dissolve in water, eliminating the need for disposal and
reducing landfill waste. Companies like MonoSol are pioneering the use of water-soluble films
in various applications, including single-use packaging for food and detergents.
Stores like Unpackt and The Zero Waste Store have adopted a minimal and eco-conscious design
by offering a range of groceries without conventional packaging. Customers bring their own
containers to fill, reducing single-use packaging waste.
Bee’s Wrap offers a sustainable alternative to plastic wrap with its beeswax-coated fabric wraps.
These wraps are reusable, washable, and biodegradable, providing an eco-conscious solution for
food storage.
FUTURE
Case Study: Revolutionising Picking and Packing with Advanced Robotics at Amazon
Introduction:
In partnership with Agility Robotics, Amazon has introduced Digit, a humanoid robot designed
to assist with picking and packing tasks in warehouse environments. Digit's human-like dexterity
and mobility enable it to navigate complex warehouse layouts and manipulate objects with
precision. By collaborating seamlessly with human workers, Digit enhances operational
flexibility and adaptability, enabling Amazon to handle peak demand periods with ease.
Thel use for this technology will be to help employees with tote recycling, a highly repetitive
process of picking up and moving empty totes once inventory has been completely picked out of
them,” Amazon stated.
“Amazon is a company that is committed to making the work experience of their employees
safer, easier, and less repetitive,” said Damion Shelton, co-founder and CEO of Agility Robotics.
“When we announced our most recent version of Digit earlier this year, this is exactly the type of
repetitive material handling deployment we had in mind—one that enables humans to be more
human.”
“Digit’s size and shape are well-suited for buildings that are designed for humans, and we
believe that there is a big opportunity to scale a mobile manipulator solution,” asserted Emily
Vetterick, director of engineering at Amazon Robotics. “Collaborative robotics solutions like
Digit support workplace safety and help Amazon deliver to customers faster, while creating new
opportunities and career paths for our employees.”
https://causeartist.com/sustainable-packaging-examples/
https://packagingrevolution.net/what-is-packaging-postponement/
https://sci-hub.3800808.com/http://dx.doi.org/10.1002/1099-1522(200005)13:3%3C105::AID-
PTS503%3E3.0.CO;2-9
http://ndl.ethernet.edu.et/bitstream/123456789/21594/1/272.pdf
https://www.robotics247.com/article/
amazon_tests_sequoia_system_and_agility_robotics_digit_for_fulfillment
https://www.businesswire.com/news/home/20231024174668/en/Agility-Robotics-Broadens-
Relationship-with-Amazon#:~:text=Customers%20in%20the%20Agility
%20Partner,manufacturing%20facility%20in%20Salem%2C%20Oregon.
https://www.youtube.com/watch?v=2lIdVQbDmXM
https://www.youtube.com/watch?v=ZWonAz7Kczs
https://www.newcastlesys.com/blog/the-history-of-warehousing
https://logistikknowhow.com/en/warehouse-automation/picking-type-pick-by-robot/