Order picking explained simply 

In logistics, order picking refers to the process of assembling and packaging goods according to specific customer orders. It is a key factor for efficiency and accuracy in the supply chain, ensuring that the right products are shipped to customers in the right quantity and quality.

Well-organized order picking boosts customer satisfaction while reducing errors, time, and costs. Modern technologies such as barcode scanners and automated systems further optimize this process.

The order picking workflow usually follows these steps:

1. Order entry: An order is recorded, either manually, automatically, or via an e-commerce system.
2. Order compilation: The required items are determined based on the order details.
3. Item identification: Items are identified using barcodes, RFID tags, or item numbers.
4. Item retrieval: Order pickers remove the required items from shelves or bins. Common techniques include forklift picking, pick-by-light, or voice picking.
5. Quantity check: The retrieved items are compared with the order to ensure the correct quantity.
6. Packing: The order is packed according to packaging guidelines.
7. Quality control: Before shipping, the picked goods are checked for quality.
8. Shipping: Finally, the goods are either shipped to the customer or stored for further processing.

Manual order picking

In manual order picking, trained employees carry out the entire process.

Advantages:

• Flexible response to individual orders
• Possibility for teamwork

Disadvantages:

• Error-prone
• Dependent on staff availability

Automated order picking

In automated order picking, picking robots handle individual boxes or even entire storage areas.

Advantages:

• Greater efficiency and effectiveness in warehouse operations
• Reduced ongoing costs

Disadvantages:

• Downtime in the event of a robot failure
• Typically complex installation and integration into the warehouse and system landscape

Single-stage order picking (order-oriented)

With single-stage order picking, an order is picked directly in the warehouse or production. The order picker goes to the storage location, retrieves the goods, and places them in the designated container.

Advantages:

• Straightforward process, no special picking system required
• Easy division of storage zones
• Fast picking of individual customer orders

Disadvantages:

• Customer orders are not compiled optimally
• Long walking distances may occur
• No batch-oriented processing possible

Order-oriented serial order picking

This is the simplest picking method. The order picker processes all orders one after another in chronological order, possibly moving through several storage zones.

Advantages:

• Easy training
• Responsibilities quickly assigned
• Low organizational effort

Disadvantages:

• Long lead times for orders
• Long picking routes
• Complex handover of orders between zones to the next picker

Order-oriented parallel order picking

Here, orders consist of multiple items from different warehouse zones. Sub-orders are processed in parallel and then consolidated into the overall order.

Advantages:

• Picking zones can be divided into smaller areas
  Shorter routes and lead times

Disadvantages:

• Sub-orders must be consolidated at a central point

Two-stage order picking (series-oriented parallel picking)

This method is mainly used when several order lines of the same product need to be processed. The storage location is only visited once.

Advantages:

• Each storage location needs to be visited only once

Disadvantages:

• Preparation and consolidation of orders is complex

Multi-stage order picking

Several customer orders are processed in parallel. First, orders are accumulated depending on warehouse type and zones, and then distributed to individual orders at the packing station.

Advantages:

• Multiple items can be picked from a single storage location at once

Disadvantages:

• Large quantities must be counted manually – time-consuming and error-prone

Batch order picking

Picking orders are grouped and processed according to a planned principle. Required items are consolidated into a “batch” (article-based groups) and then processed.

Advantages:

• More efficiency thanks to grouped processing
  Fewer walking distances

Disadvantages:

• Time-consuming, as orders must first be collected into batches
• Low flexibility, since different orders must be created separately

Static order picking

In static order picking, the responsible person moves to each storage location and removes the item directly on site. This method is also known as man-to-goods picking.

Dynamic order picking

In dynamic order picking, the warehouse management system automatically retrieves the storage unit and moves it to the picking station, where the required quantity is taken out. The load carrier is then automatically stored again. This method is also known as goods-to-man picking.

Pick-by-voice

Pick-by-Voice systems use voice-guided instructions transmitted via headsets, enabling hands-free work and reducing errors.

Advantages:

• Hands-free operation: Employees can use both hands, improving efficiency and ergonomics.
• Flexibility: Suitable for various warehouse environments, even where visual aids may be disruptive.

Disadvantages:

• Initial investment: High acquisition and implementation costs.
• Language dependency: Strong accents or language barriers can reduce effectiveness.

Pick-by-Light systems

Pick-by-Light systems use visual signals to indicate the correct picking location, supporting fast and error-free order picking. Both Pick-by-Voice and Pick-by-Light enhance warehouse efficiency and accuracy.

Advantages:

• Visual guidance: Light displays at storage locations enable quick, intuitive picking, increasing speed.
• High accuracy: Visual support reduces mistakes and improves picking precision.

Disadvantages:

• Costs: High investment for light systems and integration into the warehouse management system.
• Limited flexibility: Less suitable for dynamic warehouses where storage locations frequently change.

Automated storage and retrieval systems (AS/RS)

AS/RS solutions use computer-controlled machines for automatic storage and retrieval of goods, ensuring optimal space utilization and high efficiency. They are ideal for warehouses with high throughput and limited space, while also improving inventory accuracy through real-time data capture. These systems minimize manual intervention and enhance workplace safety by reducing accidents.

Barcode and RFID technology

Barcodes and RFID are used in order picking for fast, accurate data capture. Barcodes are scanned to record information in a warehouse management system, while RFID tags can be read wirelessly without line-of-sight. Both technologies improve inventory accuracy and reduce manual entry errors, thereby increasing overall warehouse efficiency.

The following tips can make order picking significantly easier and more efficient in your company:

• Ensure good warehouse organization and logistics for easy visibility and accessibility
• Use a suitable order picking system
• Optimize walking routes
• Provide thorough training for order pickers
• Monitor performance indicators such as speed and error rates – and take action when needed
• Establish reliable quality assurance mechanisms
• Leverage technologies and robots
• Continuously improve existing processes
• Create safe working conditions with protective equipment and ergonomic workplaces

With the ERP solution Yaveon 365, you can revolutionize your order picking processes – ensuring error-free, efficient, and high-quality execution of your orders. Benefit from a solution tailored specifically to the requirements of the process industry.

• Batch traceability: With Yaveon 365, you gain complete security through full lot tracking. Ensure that the right batches are always picked, minimize errors, and meet the highest quality standards.
• Mobile order picking: Experience a new level of efficiency with mobile order picking. Yaveon 365 enables your warehouse teams to receive and process orders in real time – boosting productivity and reducing processing times.
• Quality checks: Rely on top product quality through integrated quality inspections. Only approved and tested batches are picked, ensuring consistent quality and reducing the risk of recalls.
• Priority-driven order picking: Optimize your inventory with intelligent priority management. Yaveon 365 takes into account inbound and expiry dates (FEFO) as well as partial container usage, so lower-priority stock is used first – for efficient and transparent warehouse management.