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What is Warehouse Picking & Packing and 6 Ways to Optimize It

Have you ever received the wrong groceries, like spoiled milk instead of fresh veggies? These mistakes erode customer trust and damage your brand. 

Picking and packing processes can either make or break the shopping experience. More than  58% of U.S. internet users will buy groceries online this year. With over 150 million U.S. shoppers buying groceries online this year, retailers face mounting pressure to fulfill orders accurately and efficiently. 

Businesses must concentrate on simplifying their warehouse operations to avoid such mistakes. Optimizing your warehouse picking and packing operations will lead to faster and more accurate deliveries, increased customer satisfaction, and higher profitability. Here are a few things your store can do to tighten up these critical processes.

What Is Warehouse Picking & Packing?

What Is Warehouse Picking & Packing

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“Picking and packing” describes two essential phases in order fulfillment. Picking involves selecting the items from inventory needed to fulfill customer orders, and packing involves preparing those items for delivery.

The picking and packing workflow starts when the customer submits an order to the merchant. Once an order is received, your warehouse system generates a packing slip. Workers locate items, pack them at a station, label the box, and prepare it for delivery..These go to a packing station, where they get packed and sealed in their shipping boxes, labeled, and readied for pickup. Finally, the carrier or delivery driver takes the packed items and begins their journey from the warehouse to the customer.

Challenges in Traditional Warehouse Picking & Packing

Challenges in Traditional Warehouse Picking & Packing

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The best opportunities for optimization are sometimes most clearly revealed in the challenges we face. What follows is a list of the difficulties that have always created problems for warehouse pickers and packers:

  • Manual processes create operational bottlenecks resulting in data entry errors and other human mistakes, leading to inaccurate inventory counts, delivery problems, and slow fulfillment times.
  • An inefficient layout can delay item retrieval. If frequently purchased items are stored in hard-to-access locations, this can add up to considerable amounts of wasted time and labor.
  • Lack of automation forces the adoption of manual processes, resulting in the issues previously described. Automation means that fewer processes can be effectively halted by staff shortages or inadequate training.
  • Real-time data issues result in inaccurate or out-of-date information, which can negatively impact your workflow and turnaround time.
  • Managing perishable items is a particular concern for some industries, such as food and grocery, where warehouse inefficiencies can result in expired products being kept on shelves or avoidable losses due to spoilage.

The Cost Implications of Inefficient Warehousing

The Cost Implications of Inefficient Warehousing

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To inform your approach toward optimization, it can be helpful to examine the financial consequences of inefficient warehouse operations. Suboptimal picking and packing processes can lead to:

  • Increased labor costs—dealing with suboptimal travel times and inaccurate data takes up employee time.
  • Higher operational expenses—in an inefficient warehouse, you pay for more labor and keep unsold stock longer.
  • Lost revenue from wasted warehouse space, product returns due to inaccurate orders, and unsatisfactory customer experiences.
  • Inefficient use of space and resources—higher rents, higher utility costs, more frequent reordering, etc.

Benefits of Optimized Picking & Packing

Here are a few of the direct material benefits you can expect to realize once your picking and packing operations have been optimized:

  • Cost reduction. Reducing inefficiencies in warehouse operations will significantly impact labor costs and can lower various expenses related to delivery errors, damaged products, and other preventable issues.
  • Increased efficiency. Picking and packing optimizations result in faster fulfillment times and boost your order throughput.
  • Improved accuracy. Better processes result in fewer picking errors, increasing customer satisfaction and reducing the burdens on your customer service team.
  • Scalability and adaptability. Optimization involves future-proofing your processes by building in procedures and technologies that can grow and evolve along with your business.

6 Ways to Optimize Warehouse Picking & Packing

1. Implement Goods-to-Person (GTP) Systems

GTP solutions use automated hardware to bring items directly from warehouse shelves to the order pickers, reducing their travel time and improving overall efficiency. They can be handy for optimizing busy fulfillment centers. The benefits of GTP systems are amplified in high-volume sales environments, creating a smoother workflow and reducing the risk of packing errors.

2. Leverage AI and Machine Learning for Predictive Inventory Management

Instead of a reactive mode of inventory management that’s always playing catch-up to stocking issues, take advantage of the opportunities now afforded by AI technology and implement a predictive inventory management system that anticipates stock levels and informs a data-driven, proactive approach. Predictive tools improve inventory accuracy, reduce shrinkage, and cut costs. .

3. Use Robotics for Repetitive Tasks

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Many warehouse tasks are repetitive, involving fixed locations and known units, and can be performed by robots. Investing in robotic warehouse solutions can reduce labor costs and minimize manual errors. They can also create a safer work environment by reducing the amount of time human personnel have to spend performing physically demanding activities.

4. Streamline Operations with Picking Zones

Organizing warehouses into distinct picking zones directs workers to designated regions, reducing travel time and increasing order processing speed. This strategy maximizes resource use, removes operational bottlenecks, and adds to measurable ROI  by lowering labor costs and enhancing overall efficiency.

5. Integrate Real-time Data and Analytics

Real-time data, updated automatically without reliance on manual data entry processes, is necessary for visibility that allows you to make timely and informed strategic decisions in rapidly changing markets. The insights from real-time data analytics can help you prevent stockouts, manage inventory levels more accurately, and optimize your workflows based on current demand patterns.

6. Enhance Workflow with Task Interleaving

Task interleaving is a productivity strategy that involves combining multiple tasks within a single trip. In the context of warehouse operations, this might mean trying to make sure that tasks like cycle counting, stock replenishment, and picking are being combined as often as possible. When task interleaving can be carried out effectively, it reduces operational lag and improves resource utilization. This can result in significant boosts to efficiency in dynamic warehouse environments.

Revolutionize Your Warehouse Operations

Your warehouse’s picking and packing operations represent multiple potential opportunities to optimize tasks, lower your costs, and create better fulfillment experiences for the customer. Focusing on operational details can help us identify and remediate inefficiencies, but sometimes the market evolves to the point where it makes sense to consider a new, forward-looking approach.

Finally’s AI-powered fulfillment center automates picking and packing, offering scalable, cost-effective solutions that integrate with your current systems. Finally easily integrates with existing spaces and infrastructure, growing along with your business and supporting further optimization efforts by providing real-time data and insights related to inventory management. 

Contact us today to learn more about the benefits Finally could bring to your store.

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