Fewer errors, more satisfied customers: the magic of good order preparation

What is order picking? Why should you take a close interest in this logistics function, which involves managing your stocks and your supply chain?

Because changing customer expectations have had a major impact on industrial and commercial strategies, which now require organisational and technological revolutions.

Companies have had to adapt their methods and tools to survive in a highly competitive environment. And order preparation still accounts for almost 60% of operational costs in traditional warehouses.

Focus today on this key business process, and how it can be optimised. 🔎

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Definition of order picking

What is order picking?

A term used mainly in the industrial sector, but also in the commercial sector, order picking is a key logistics operation.

It consists of taking products from a storage area and then putting them together, in accordance with an order form, in preparation for dispatch to the customer.

This operation is mainly carried out by the order picker.

How order picking works in stages

Traditionally, order picking works as follows:

• Picking: the collection of items from their storage location, following the customer's order and the generation of a picking order.
  
  
• Sorting: identifying and assembling items for reconstituting orders and organising packages.
  
  
• Packing: packing units, parcels or pallets to facilitate handling and transport operations.
  
  
• Pre-shipment checks: checking the weight of the completed unit and scanning the label so as to guarantee the traceability of the shipment.

💡 We'll come back to these different stages in more detail later in the article.

Why is order preparation important?

The needs met by logistics are both internal (supplying goods or services to keep a company running) and external (customer satisfaction).

It is therefore a strategic function between suppliers, transporters, central purchasing bodies and consumers.

In this context, order preparation is of vital importance for a number of reasons:

✅ Stock management. Good order preparation helps to

• avoid errors leading to stock discrepancies ;
• adjust stock levels to customer needs and the company's economic requirements;
• reduce the costs associated with logistics operations;
• increase storage space,
• improve purchasing strategy (minimise losses and waste).

✅ Customer satisfaction. Optimised order preparation guarantees good customer relations and, ultimately, customer loyalty, since :

• the delivery contains the items requested in the right quantity, in the right condition, on time and at the chosen address;
• the traceability of goods means that lost or delayed parcels can be traced and appropriate action taken.

✅ Quality and safety. Good order preparation ensures that the products prepared and delivered are safe, but also that working conditions, which can sometimes be trying, are at the heart of the company's concerns, including:

• compliance with health and safety rules, through the implementation of quality procedures ;
• accident risk prevention (ergonomic workstations, no heavy loads at height, labelling of dangerous products, appropriate storage furniture, etc.).

The 5 order preparation methods

Method 1: picking by item

This is one of the most common order-picking methods.

The process is fairly simple: when an operator receives an order, he moves around the warehouse (sometimes using a trolley) to collect all the items concerned. When he has finished, he starts again with another order.

👉 This method works very well in small warehouses, but is less effective in larger ones because of the time wasted travelling.

Method 2: Group or batch picking

This method is based on the fact that the same person prepares several orders at the same time.

This way, the operator saves time: if he finds the same item in several orders, he directly picks the total quantity, and therefore saves time.

👉 In the case of massive orders, software groups order items by reference. It is then necessary to carry out a sorting operation.

Method 3: picking by zone

Here, orders are organised into well-defined zones, in which several operators are responsible for preparing them.

We're dealing with the same principle as picking by batch, except that here the order items are grouped and sorted according to the different storage areas, not according to product type.

👉Once one zone is finished, workers move on to the next.

Method 4: Wave picking

Also known as wave picking, this process combines the use of the 2 recognised methods:

• Batch picking. Batches of items are grouped according to :
• their shipping priority ;
• their transport route
• the number of orders
• their composition;
• operator workload.
  
  
• Picking by zone. To avoid overcrowding or excessive traffic in the warehouse aisles, order groups are assigned to pickers according to the location of the goods.

Method 5: picking using combined order systems

In warehouses with the most advanced systems, picking is often carried out by combination.

The process is relatively simple: the order is placed by zone, and in the same zone, the employee picks in batches.

What is the order picking procedure? The 4 stages

Stage 1: picking

As we have seen, this involves picking items from their storage location.

Computerised sorting makes it possible to draw up optimised picking lists and save time by reducing the number of rotations between the various locations.

💡 It's up to you to choose how to proceed, from the various methods presented above.

👉 In short: customer order → preparation order → communication of the order to the picker → picking of items → reading of barcodes or labels and updating of stocks.

Stage 2: sorting

This is the stage at which the items are identified and put together, either :

• by order item ;
• by order ;
• by customer.

The physical sorting, after picking, is used to reconstitute the orders and organise the parcels to facilitate transport. This sorting is done by order, then by customer, then by geographical area.

👉 In short: items are sent to the preparation area → an order is sorted and assembled on a packaging unit.

Stage 3: packaging

This involves packing the packaging units, parcels or pallets, with the aim of facilitating handling and transport operations.

👉 In short: packaging, wrapping and overwrapping → printing and labelling packages or pallets.

Stage 4: checking

The picker checks the weight of the completed unit and scans the label to ensure the shipment is traceable.

In short, the picker performs a final validation before dispatch.

How can order preparation be optimised?

By using technological solutions, and more specifically management software in SaaS mode.

These days, inventory management and warehouse management tools have become essential for responding to customer demands (especially in the context of an omnichannel distribution strategy):

• constantly monitor merchandise movements and incoming and outgoing flows to optimise inventories;
• update stock levels immediately
• trigger automatic replenishment operations;
• centralise supplier and customer contacts;
• create product sheets and manage barcodes;
• generate quotes, purchase orders and invoices;
• track payments in real time;
• set up a stock alert system to avoid stock-outs;
• manage the activity of several remote warehouses;
• manage and track product returns;
• generate reports to facilitate strategic decision-making.

Selection of order preparation software :

See all software Warehouse Management

The role of the order picker

What are the tasks of an order picker?

Reporting to a team leader, the order picker works in the warehouse and ensures that the operation runs smoothly, using the documents provided.

They work closely with forklift drivers, who transport the goods around the warehouse. Sometimes, the picker and forklift operator are one and the same person.

The tasks associated with this job include

• selecting the equipment and supplies needed for the shipment (pallets, packaging, etc.) ;
• Picking and moving items from their location to the preparation area;
• checking items (condition, packaging, quantity),
• making the packaging units (parcels or pallets), with weight balancing; over-wrapping ;
• making the package available after checking or weighing;
• affixing labels to identify contents and destination;
• recording each operation in computerised management systems.

What is the average salary of an order picker?

In France, the salary of an order picker varies according to:

• experience ;
• employer ;
• region.

According to Indeed, the average salary for this job is €2,208 per month. Talent.com reports a median annual salary of €21,587, or around €1,799 per month.