10 October 2021 Understand the importance of picking and the gains generated by choosing the method that best suits the specifics of your warehouse. Sorting or order preparation, known as picking, is considered one of the most important and costly processes within the warehouse. To get an idea of its relevance, studies show that picking accounts for about 60% of warehouse costs. Its high cost stems from the fact that it is a process that usually involves many people and equipment, as well as the movement factor which also has a significant impact (see the 7 most common picking problems). In other words, we can say that the high number of operations in the warehouse and the long distances traveled can mean a loss of money. How to solve this problem? Define the right picking strategies for your business. Much of the picking process involves the operations performed by operators. Of course, the correct layout and proper use of storage structures and equipment have an important impact, but they are not sufficient. Implementing the ideal picking methods for your warehouse through technology makes a difference. In traditional warehouses, especially those still using manual processes (with paper lists, folders, etc.), one of the biggest challenges is optimizing the sorting process. Among the challenges faced are: defining the best position for products in the warehouse (shelf positioning and line balancing), organizing orders and their priorities, calling the right operators to perform the picking activities and reducing movements. Developing a strategy that takes all these factors into account is not easy. That’s why the primary solution to adopt is to have the support of technology. With a WMS (Warehouse Management Software), all these points are covered, as the system has algorithms and functionalities that will suggest the best positions, determine the flow of stock movements, group activities to make the best use of the workforce, and ultimately optimize business resources (people, equipment, and area). In addition to investing in technology, it is crucial to use the picking methods most suitable for your business. The definition of the ideal model for the operation depends on a series of factors, such as: – Sorting unit (whether orders are sorted in pallets, boxes, fractional, by weight, etc.) – Number of orders processed in the day – Quantity and diversity of SKUs in the warehouse – Estimated time for order picking – Types of products stored (their shape, degree of fragility, etc.) – Ease or difficulty in combining loads – Size of the warehouse and operational layout – Inventory volume – Seasonality in sales This means there is no picking method better than another, but one that will bring the best results for a particular type of activity. Moreover, with the help of automated systems, the picking process can become even faster and require less labor, and in this case, there are also different modes that need to be evaluated (pick-to-light, goods-to-person, voice picking, etc.). Why choose the right picking method for your business? The choice of the most suitable picking method(s) for the operation not only means cost reduction and faster picking speed. Other direct and indirect benefits achieved are: – Agility in delivery (which directly affects customer satisfaction) – Increased productivity in the warehouse (if orders are picked faster, it means more requests can be fulfilled in a day) – Reduction of errors (such as missing or advanced items and swapped products) Having a system that manages the entire picking management, like the WMS, can add even more gains, such as: – Automatic pick replenishment; – Dynamic balancing of separation lines; – Sizing the number of product pick positions based on its rotation or ABC curve; – Significant increase in inventory accuracy, as the system coordinates activities, tracks, and records all movements made; Monitoring the operation in real-time and timely correction of bottlenecks, from the dashboards and KPIs offered by the system (Visual Management). How to choose the models As discussed in this article, each type of picking aims to meet a different context, aiming to increase productivity and reduce costs. Below, we present the most common models: Order picking (picking per order) In this picking model, each operator fulfills a single order at a time, so the possibility of errors is lower, as only one person is responsible for the entire process. On the other hand, there is a greater loss of time, as the employee will have to go over a large part of the warehouse to pick the orders. For this picking model to work well, the warehouse layout must be structured considering the rotation of products, meaning items with higher production must occupy positions closer to packing. And, to facilitate operator movement in the warehouse, they can use a cart or any other equipment that speeds up their circulation in the warehouse. This model can work well for warehouses that fulfill few orders but have a high volume of items in each of them. Remembering that the employee responsible for the separation of a particular order can take on another only upon completion of that separation order. Batch Picking (picking in batches) Since movements in the warehouse account for a good part of the picking costs, a way created to reduce these movements is batch picking. This sorting mode is based on grouping orders to reduce stock access, allowing more units to be collected on each route, thus fulfilling more than one order. Essentially, batch picking works as follows: each operator picks goods related to a group of orders in a single turn, meaning the employee goes to the position of an item and, instead of picking the required quantity for a single order, they pick a larger number, contemplating other orders that also required that merchandise. Subsequently, the items collected in a grouped manner are separated based on each order and destination, usually in the control process. Batch picking relies on technologies that group applications and then separate them. This picking mode is recommended for operations with highly fractional items, such as e-commerce, as it reduces the number of times the operator makes a pick from the shelves. The gains provided by this type of picking are numerous, starting with a significant increase in productivity and a reduction in labor (staff). However, it is necessary to have an efficient management system for automatic grouping and pick queue. Zone Picking (picking by zone) This type of picking works similarly to a production line. The warehouse is divided into zones (sectors) and each operator is responsible for sorting in one area. The employee only picks products from that designated zone and passes the order to the next zone, where more items may (or may not) be added until the order is completed. Generally, conveyors and shelving near the operator are used to avoid movement and speed up the process. Zone picking works well in warehouses with many SKUs, high sales volumes, and medium-low quantities of items per application. Wave Picking (mass picking) Wave picking is a mixed zone and batch picking. A wave picking is generated in the warehouse by grouping multiple orders (by carrier, route, or delivery region) and operators, positioned in their zone, pick the products allocated in that sector. All picks occur simultaneously. Subsequently, the goods go to the consolidation area where a second picking takes place, this time to create individual orders. This picking mode is recommended for warehouses with a high number of SKUs and a medium-high quantity of items per order. Wave picking is often used in warehouses where stock is in refrigerated, chilled, or frozen cells, where the operator needs to pick the goods in the shortest possible time frame. Bulk picking (mass picking) Bulk picking involves the separation, where possible, of closed volumes (boxes or industry packages), to avoid shortages in picking areas of fractional products (units) when there are orders with large quantities. Imagine that, in an order, 180 units of the same item are requested. If the pick position of this product contains up to 100 units, two replacements would be needed to separate this order. Knowing that the industrial package contains 90 units, with bulk picking, the system directs the separation to the packaging/closed box area. Complementing this strategy, many companies use specific areas for these volumes (reservation address/fixed address). Another practical example could be the following: suppose three orders are planned in different shipments (different couriers) and have a common product. If each order contains 5 boxes of this item and 15 boxes form a pallet stored in the warehouse, then instead of separating each order individually, generating several movements in the warehouse, the system groups the activities and generates a single activity to pick that pallet. As soon as the pallet is picked, it is brought to a shipping area where each volume is placed on its delivery. We can say, therefore, that bulk picking avoids repetitive efforts, generating significant savings not only in time but also in resources in the warehouse (people and equipment). Additionally, it benefits the replenishment process, which will also be performed less frequently but replacing a greater number of items. Therefore, it is an ideal picking mode for companies receiving orders with large quantities of the same product. Two-step picking (two-step picking) It is not always possible to keep all products in easily accessible zones in the warehouse, which do not depend on a forklift, and when it is necessary to assign them to higher positions, many managers fear the productivity and high cost of picking, as it requires the use of equipment (forklifts and stackers). Additionally, it is important to remember that, generally, there is competition for the resource, given the various movements in the warehouse, and this equipment requires maintenance, meaning it is not always available 24 hours a day. An efficient solution for managing the picking of products in high positions and optimizing the use of equipment is two-step picking. The principle of this picking method is simple: when picking requires forklifts or stackers, the volumes of orders are grouped. Therefore, all products allocated in high positions are picked in a single activity and then placed in a specific area on the floor for subsequent separation by another warehouse team. This way, the vertical movements of the equipment are reduced, and floor picking becomes faster, reducing costs and increasing productivity. Pick and confirm / Picking-by-scan Pick and confirm is performed using radio frequency (RF) devices, which communicate to prevent separation errors, as separation occurs through barcode reading (GTIN, UPC, EAN, DataBar, ITF-4, GS1-128, etc.) of both the product and the position. Additionally, with Pick and confirm, the work of operators is recorded, and through recording, the system can generate performance indicators both individually and by line (productivity), have traceability of all tasks and movements (safety) without using paper. Another advantage of pick and confirm is the possibility of sample control. Since separation requires the barcode reading of all picked products, it ensures that items have been correctly separated, thus waiving a full check at checkout. This strategy allows a significant reduction in labor in the operation. Goods to Person Picking Goods to Person Picking is a modern method of order picking. The product is moved directly to the operator through machines (such as OSR Shuttle®, Carousel Systems, and others) that store the items and receive commands from the WMS when an order arrives at the warehouse. With this integration between the software and the automation system, efficiency and accuracy of the picking process are increased, as the operator does not need to travel: the product is sent to them. Additionally, there is a reduction in effort, increased safety (the product is inside the machine without people accessing it), and also a reduction in storage space. The Goods to Person Picking is recommended for medium and slow-moving items and when there is little space available. Another form of automation for goods-to-person picking is the use of robots. Crossdock Companies seeking to have low inventory levels adhere to the crossdocking model, a logistics technique derived from just-in-time management, which determines that products and raw materials are available in stock as soon as they are needed. In practice, crossdocking is the transfer or movement of products from receiving docks directly to shipping docks, as these are goods that already have an output demand. With this, besides maintaining a low inventory level in the warehouse (invested capital), no time, labor, or space is wasted storing products with immediate shipment. The advantages of crossdocking are: – Reduced product handling, as they will not be stored and subsequently separated; – Reduced delivery time to the customer, as no time is dedicated to order preparation; – Reduction in working capital, as purchases are made only when there is sales planning; – Reduction in logistics costs, as there are no expenses with labor, equipment, and storage area; – Zero stock, meaning it eliminates concerns with idle stock, with product shortages in stock (stock out), and also with demand forecasting. For crossdocking to generate the desired results, the operation must be very well synchronized, meaning it must perfectly follow just-in-time. Which mode to choose? The picking method to adopt depends on numerous factors. The choice of the ideal model and its implementation will decisively influence your business, both in financial results and customer satisfaction. As mentioned earlier, in refrigerated warehouses, wave picking is probably the most appropriate for cold rooms, as the operator should spend the least possible time exposed to low temperatures. In a completely opposite case, such as an e-commerce operation, batch picking is a good strategy due to the high degree of fractionation. And, to ensure assertiveness in deliveries, the use of RF collectors during separation is highly recommended. How implementation occurs Once the picking mode to be adopted is defined, how to implement it? There are many ways to do it, and we can mention: – Manual/Paper (Manual picking) – Radiofrequency (RF picking) – Voice picking – Pick-to-light – Automated systems Factors such as demand, cost, and quality of work, available space, and others should be considered. It is known, for example, that pick-to-light allows performance many times higher than radiofrequency. But, on the other hand, the accuracy of the latter is much higher. Typically, a distribution center adopts multiple picking methods to achieve the highest possible efficiency. Deagor has success cases where, in the same operation with its own WMS, wave picking, batch, with confirmation, in two steps, and others are performed, supported by radiofrequency, pick-to-light, shuttle, etc. What does your warehouse need to make picking work well? A series of additional features are necessary. Picking itself is the end of a chain of actions that depend on each other. It is useless to have an ideal picking if the goods are not in the right place and quantity, involving the least possible number of movements and shifts. Among the important requirements for efficient separation, we can highlight: – Line balancing – Dynamic addressing – Replenishment One of the points that deserves particular attention is the balancing of picking lines. Balancing means not only determining the location of products at the various addresses of picking stations but also the replenishment policy of these addresses. It is essential to have a WMS system that allows not only periodic balancing but also Visual Management, meaning the availability of information on the operation in real-time, using KPIs that help in the early identification of failures and their correction. With this, managers can process the impact of unforeseen demand variations, such as those that occur with products coming from a long period of chronic shortage, climate changes, and promotional campaigns. Especially in picking, management with Visual Management is essential. Keep in mind that a distribution center functions like a production line. For it to be truly efficient, it is important that all its links work as expected. It only takes one to operate, for example, at 50% of the forecast, and probably the result will also be 50%. WMS: necessary flexibility for high performance The WMS plays a key role not only in your current needs. It must allow your business to constantly evolve, adopting and modifying new methodologies as required by your business. We live in a constantly evolving time, which is why your company needs a flexible system that can adapt to all the optimizations you make in your operation. If initially, you operate with products having certain characteristics and demands, tomorrow new products may be adopted, as demand will change radically. New methodologies and tools will likely be adopted. Considering a company with multiple distribution centers, it is normal for each of them to adopt different picking modes and tools. A warehouse with an operational demand n times higher than another, or even with very different rental and labor costs, will certainly implement a different model. In situations like this, a robust and flexible WMS makes a difference in business, allowing the manager to manage a complex environment simply and securely, always pursuing its main objectives: growth and profit. Mobility: agile and efficient management Today, there are technologies that allow generating picking through mobile devices, whether tablets or smartphones, allowing the manager to monitor their operations wherever they are. These devices are indispensable for performing various critical operations, for example, countdown at the time of picking or stock movement. Imagine area managers and logistics managers following the entire operation on tablets, without the need to go to the desk and computer to obtain information. With preventive alerts sent directly to their supervisors’ devices, they can anticipate the occurrence of a fault, quickly move to the location where the problem occurred, and act immediately to correct it. Sounds perfect, right? The good news is that this structure already exists and is adopted by the main leaders of the Supply Chain. With mobility, not only picking benefits, but also other processes that occur in the warehouse, allowing the ideal follow-up for the order flow to occur in an agile and efficient manner. Picking: What is the Ideal Model for Your Warehouse? Deagor WMS per ecommerce può aiutarti!