Optimizing various warehouse processes is a sure-fire way to reduce costs and improve the customer experience. Of all the activities that happen in a warehouse, order picking is probably the one most ripe for optimization. Fortunately, it is also one that many businesses are choosing to automate. Here is why your warehouse might want to start its automation journey with order picking, some options for order picking automation, and the benefits of automated order picking systems.
The Challenges With the Order Picking Process
Within logistics, order picking usually accounts for a good chunk (think half) of warehouse operating costs. Businesses must contend with different order picking challenges based on the nature of their products, the warehouse setup, and the industry verticals. Some of the top challenges in the order picking process that can impact business results include:
Inaccurate Inventory Information
When a customer places an order, the products must be on the shelves for fulfillment. Pickers often waste time searching for missing items, leading to order delays and bad customer experiences. Lack of visibility in the picking process can lead to overstocking, understocking, or holding onto obsolete items.
Poor Picking Pathways
If your warehouse workers are spending a majority of their time walking back and forth between different locations, this isn’t ideal. Inefficient picking pathways can impact your profits and create a poor worker experience, leading to injuries and high turnover rates.
Human Errors in Picking
Even the best warehouse worker can occasionally grab the wrong item, drop something causing damage, or select the incorrect quantity. Enough unchecked errors in the picking process can add up quickly, however. According to Honeywell, warehouse picking errors can cost up to $250 per mistake.
Inability to Scale
Online discount sales and annual holiday periods are prime opportunities for eCommerce businesses to boost revenue. However, if your warehouse can’t keep up with order fulfillment, fewer people will buy from your company in the future.
Leveraging Automated Order Picking Solutions
Considering the challenges warehouses are facing, many are considering automation as a solution. Automated warehouse picking leverages semi-robotic technologies and full robotics to retrieve items from inventory during the order fulfillment process.
Automated order picking can take over many manual processes that are commonly performed by human pickers. The degree of automation will depend on the type of solution you choose. Some different solutions include:
Goods-to-Person (GTP) Systems
In GTP automated picking systems, robots bring items to workers who remain at a stationary location. This reduces the time workers spend walking and searching for products as well as improves accuracy.
Pick-to-Light
In this system, LEDs are placed for every product stored in the warehouse. When an order needs fulfilled, the picker scans the barcode and an LED light associated with that product will light up on the shelf.
Voice Picking
Voice-directed picking involves the use of wireless headset. Wearing these, human pickers receive verbal instructions for their next order. This allows them to work hands-free. Once the order is retrieved, the worker can verbally confirm it before moving on.
Automated Guided Vehicles (AGVs)
These driverless vehicles move around the warehouse using external markers or other control systems. They move products from one area to another so human workers can focus on other tasks.
Conveyor Systems
Roller and belt conveyors are common in busy warehouses. These systems are often equipped with scanners, sensors, or other technology to process items based on barcodes, RFID tags, size, weight, or other factors.
Robotic Picking
Collborative robots (cobots) take over of some or all of the picking activities. For example, cobots can move independently through the aisles, pick products off shelves, and update inventory or order fulfillment systems.
Top Benefits of Automated Order Picking Systems
Adopting automated ordering picking systems can have a profound impact on your warehouse’s operations and results. While these solutions require an initial investment, the many benefits far outweigh the costs.
1. Reduced Costs
According to an efullillment service study, the average cost to fulfill an online order is 70% of the average order value. Any money you can save in the fulfillment process can chip away at these high costs. Automation may not replace human workers entirely, but it can reduce the need for some manual labor and save costs on things like wages, benefits, space, and errors.
2. Optimized Order Picking Accuracy
Speaking of errors, automated picking solutions can reduce the chance of human error, resulting in fewer mistakes and customer returns. These systems use algorithms that improve their picking processes and leverage data to optimize future operations.
3. Improved Picking Speed
Today’s consumers want their products delivered as quickly and efficiently as possible. Automated picking tools can integrate with other solutions to improve overall picking speed. For example, the system can assign different robots to various zones or have robots pick more difficult items and leave easier items for human workers.
4. Enhanced Flexibility
Automated picking solutions give your warehouse the flexibility to quickly adapt to changes in inventory and order patterns. Instead of having to hire a ton of seasonal help during the holidays, you can scale up your automation solutions to respond to a higher volume of order fulfilmment. These systems also offer the flexibility of being able to integrate with your other warehouse systems like a WMS, RFID tracking systems, or mobile powered carts.
5. Better Customer Experience
Automation solutions that speed up picking and improve efficiency in warehouses get the right goods into customers hands faster. When this happens, those customers are more likely to buy from you again and tell others about their positive experiences with your brand.
Order picking is one of the most labor-intensive warehouse processes. Because there are many challenges associated with this process and its impact on the overall customer experience, it’s worthwhile to investigate automated order picking systems. Fortunately, your business has many options to choose from, and the benefits of automation will ensure a high return on your investment.
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