Efficient picking and tight inventory control are the lifeline of online order fulfillment, particularly during seasonal peaks. Out-of-stock items and incorrect orders simply mean lost business.

That was the hard fact Calendars.com faced if it didn't improve distribution operations at its Austin, Texas facility, which it shared with the mall retailer Calendar Club. When shared inventory led to too much product handling and duplicated efforts, Calendars.com employed logistics consultants to reorganize its picking and storage. A more efficient orderpicking process and equipment layout quickly increased the retailer's capacity from 5,000 orders in two shifts to 8,000 orders in only one shift.

"Because the DC's fulfillment system was originally developed for our parent company, a mall retailer, it is designed for sending thousands of calendars to a limited number of locations," Hillel Levin, general manager, explains. "Our e-commerce business model, however, turned that on its head since we send only one or two calendars to thousands of locations. We limped along fine until the orders per day exceeded our limits. Our system was only capable of so much volume."

A logistics assessment quickly identified the main problems: overlapping, uncontrolled inventory, double handling of orders, and an extensive conveyor system that used too much floor space and limited flexibility.

A move to discrete batch picking was the DC's first solution. Consultants identified this procedure as the best practice for handling one or two products per order because only one orderpicker completes the order. It ensures the least handling of merchandise and limits duplicated efforts.

The next solution is a conveyor loop around which inventory is placed. Carton flow rack alongside the conveyor carries any fast moving items, while slower moving products are picked from one-, two- and three-deep static shelving.

Orderpickers move around the conveyor with carts containing wireless terminals that provide individual order information. This layout greatly reduces travel, enabling an order picker to complete 100 orders in one walk around the loop. It also eliminates the excess product handling of moving items from the Calendar Club storage to the Calendars.com section. "Now we can handle many more orders an hour compared to our former system," says Levin.

"The new system gives us the flexibility we need. With our new processes and layout, Calendars.com can continue to operate out of its shared space as hoped," says Levin. Best of all, the retailer now manages 80% annual growth with ease.