8 January 2023 Discover ways to improve the order picking process in the distribution center and increase productivity, efficiency, and customer satisfaction. Every organizational flow involves different steps that can vary based on size, complexity, and business model. Among the processes involving the logistics of a distribution center is picking, the order separation phase, which is also the most responsible for buyer satisfaction and your business’s performance, as it is directly related to the customer experience. If we look at the market today with a technical and logistical analysis, or even by conducting a simpler survey, considering consumer satisfaction with their favorite brands, we can easily identify, in both scenarios, which companies stand out positively. Amazon, Mercado Livre, and Walmart are big names that raise some questions: “What do they have in common?”; “What makes these companies great brands and examples to follow?”, “How can we become increasingly competitive by following the legacy and model of these giant organizations?”. The answer might be simpler than it seems, and with organization, strategic and logistical planning, information, and the correct applicability of available tools and instructions, your company can also achieve high levels of satisfaction, recognition, and profitability. Order Picking: A Key Point for Your Business Success One way to start moving towards growth and increased productivity is to closely examine order separation (picking), which is also responsible for 60% of a warehouse’s total investment. Is your company well-organized in this phase, functioning correctly and efficiently? Below, we have outlined 8 ways to reduce failures that can occur in this process, affecting the speed of your logistics operations. Take a look: Regularly review storage, supply, and replenishment strategies. Organization is one of the main qualities a DC can have when it comes to improving picking performance. It is important to ensure the cadence of the entire flow, from the customer’s order placement to its shipment to the courier. To do this, it is essential to pay attention to: Stock fragmentation: In addition to following the ABC curve to ensure agility in order separation, it is also important to avoid stock fragmentation, i.e., allocating the same SKU to multiple positions in the DC. This can cause separation errors and even confuse the picker. Inventory management and control, based on the average inflow and outflow of certain products within the warehouse, allows you to calculate the number of items needed to keep the picking area always stocked. In other words, it is necessary to calculate the minimum and maximum stock, considering seasonal dates, peak sales periods, and seasons. From there, it is important to define a good strategy to replenish the separation lines. Ensure all items and addresses are correctly labeled The larger the structure of a distribution center, the greater the operational attention and strategy required throughout the process, starting with the identification of each warehouse item and even the positions. Correct identification, as well as the listing of items and addresses where each product is stored, is essential to – as mentioned in point 1 – maintain order and productivity. Ensuring that each item is properly labeled according to its specifics and that all positions are marked, facilitating their location, helps guide employees and reduces the chances of sending wrong products. Conduct periodic inventories Stock inventory, or the control of the quantity and conditions in which products are stored in the warehouse, in order to identify discrepancies and non-compliance of actions, is an extremely important process to prevent errors in order preparation. By conducting counts, it is possible to discover errors, such as products allocated in inappropriate places, nearing expiration, or even missing, and thus intervene early to correct them. Many companies already invest in advanced software and new technologies to automate inventory control, as well as obtain real-time information, allowing for instant error correction. However, there are still those who perform the counting manually, which can affect the time required to complete tasks, order, and send orders. Map your process from start to finish What happens from the moment the product arrives at the dock until it is picked up by the courier? The path may seem short when we briefly summarize it in input, product preparation, and shipping, but the truth is that numerous details must be considered at every moment of the path, and the entire flow must proceed with the same efficiency. Both handling and yard management, as well as the receipt of goods, their separation, and inventory control, must be analyzed “under a magnifying glass” to find improvement opportunities; after all, the company resembles a living organism. In other words, it is unlikely that the result of a process will be 100% satisfactory if something along the way is not in agreement or does not perform its activity as expected. Pay special attention to reception The entire process must be controlled very carefully in its early stages, as they are crucial for everything to happen efficiently. Imagine yourself in the following situation: when you leave home heading to the airport, you forget to check if your tickets were correct; When you arrive at the boarding platform, you realize you have swapped them with other documents that were together under your table. How will you board? This could also apply to your company’s routine if the reception of goods takes a back seat. In 100% manual warehouses, the reception process generally occurs manually, where the employee, holding the invoices of the received products, checks if everything is in order. In some cases, item-by-item control may not be performed correctly, causing interruptions in picking, such as the absence of a product. To avoid this type of problem, managers can use software with advanced intelligence as an ally. A great example is the WMS, which offers the blind conference function, through which employees use a data collector and inform the system of the count and specifications of the received products. And it is precisely the software that takes care of cross-referencing the information with the invoice, ensuring the accuracy of the information and alerting in case of any discrepancies. This reduces the chances of errors in order preparation caused by the entry and storage of incorrect products. Train your employees well Confident employees are organized and productive employees. Conducting general and specific training ensures the smooth operation of the entire warehouse. Specifying functions, guiding the operation of each activity, teaching the use of tools and technologies that optimize operations, and investing in infrastructure and work quality allows employees to perform their functions with greater safety and confidence. This will contribute to high productivity during task execution, including order picking. Rely on WMS to generate activities, notify errors, and provide real-time data From order receipt to dispatch, one way to monitor the entire process within the distribution center is to use tools like WMS. The software operates in all phases, centralizing information in a single system and avoiding the likelihood of errors. As soon as an order arrives at the warehouse, the WMS creates what we call Active Call, a type of task assigned to the right person, i.e., the one closest, available, and capable of performing the actions in the fastest way. The system calculates the shortest route and the fastest way to execute it based on the standards and organization of the DC. Another great advantage is the organization and automatic routing of products, automation of stock rotation (based on minimum and maximum levels), receipt and shipping controls, order prioritization, and even the realization of cyclic inventories. And all this happens with real-time notifications and monitoring and is accessible to the entire team. Thus, especially in the event of errors during the flow, it is possible to correct them quickly and accurately. Implement the right automation for your company Besides WMS, it is possible to rely on the technology, performance, and agility of data collectors, which make a big difference in terms of accuracy in order picking. With these tools, it is possible to work with high demand and speed. There are also picking automation systems, generally used in more complex operations or with a large daily volume of orders. We can mention the main ones, such as: Pick-to-light: In this method, product separation is guided by a light indicator, which lights up at the addresses where the requested items are located. It is also equipped with a display system for the quantity of merchandise to be picked, and once the order separation is complete, the employee clicks a button to confirm the operation. Voice picking: This system guides employees based on verbal communication received through headsets, indicating commands for product separation. Goods-to-person: This system can be implemented with the help of robots, which pick the requested products in the order directly from the warehouse. Thus, it is up to the employee to pick the necessary amount to complete and send the order. Then, the system returns the previously requested batch to the warehouse. Overcome picking errors and improve your results. These tips have been designed to cover the most common picking errors that can damage order fulfillment and negatively impact your company’s reputation. Once the previous points are applied, you will ensure greater efficiency in one of the main phases of the logistics operation, ensuring excellent service to your customer. Picking: 8 Practical Tips to Avoid Failures and Increase Productivity Deagor WMS per ecommerce può aiutarti!