Accurate order picking counts more than ever
When it comes to customer service, no one remembers the last order they received that was picked right, but everyone remembers the one that was picked wrong.
By John M. Hill, principal, ESYNC -- Modern Materials Handling, 4/4/2007
Industry sources suggest that the typical company invests 55 to 65% of warehouse operating costs in order picking.
With U.S. logistics costs reported to be $1.14 trillion, that percentage represents more than $9 billion annually. That’s a whopping amount for anything less than excellent performance. And, generally, it appears we are doing a good job.
Indeed, when was the last time you ordered a product from an online or catalog retailer and received the wrong item? On the other hand, you probably haven’t forgotten the last time something went awry!
Well, my last time happened when I bought four dozen top-of-the-line golf balls on the Internet at a very low price. UPS delivered the balls a few days after my purchase, and I put a couple of sleeves in my golf bag for an upcoming weekend tournament.
On the first tee, I opened a sleeve of the new balls and found TaylorMade’s inside, not the Maxfli’s I had ordered. When I opened the second sleeve, the packaging also indicated that it contained Maxfli’s, but—it didn’t!I learned later that the problem occurred at a co-packer location, where the balls were packed in the wrong sleeve. To the retailer’s credit, I was generously accommodated for my inconvenience.
Best practices for the perfect order
You may not be able to avoid similar problems in your own warehouse or DC without rigorous inspection processes for inbound materials. However, you can take steps that provide order pickers with every opportunity to achieve error-free picking performance.
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Reserve and forward picking areas should be clean and well-lighted with ample space for order pickers to perform tasks.
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All
locations, including bulk storage lanes (remember that everything has to be someplace), should be clearly identified with labels or placards that pickers can read from a distance. -
Inventory deployment should be based on activity profiles with particular attention paid to spreading the fast movers across pick fronts to facilitate access and reduce congestion.
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Make whatever investment is necessary to ensure the accuracy of inventory-by-location records.
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Whenever possible, eliminate item mixing (particularly like item mixing) in the same storage locations.
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Match pick methodologies to order profiles and content.
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Release orders in pick path sequence.
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If using paper, ensure that picking documents are clear and easy to read.
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Consider sampling picker output quality in shipment staging based on his or her experience and historical performance. Reward high achievers.
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Establish order picking metrics, including inventory accuracy, and publish results regularly.
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Solicit order picker ideas on improving performance.
These fundamental recommendations are aimed at improving the picking environment to enable pickers to more easily execute their assignments in both paper-based and system-supported operations.
Clearly, the use of bar coding, voice data entry and RFID coupled with a solid warehouse management system (WMS) can take performance to a higher level, but not before the fundamentals have been addressed – nor before the order picking team has bought into the game.
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