Order processing


Order processing is the process or work-flow associated with the picking, packing and delivery of the packed items to a shipping carrier and is a key element of order fulfillment. Order processing operations or facilities are commonly called "distribution centers" or "DC's". There are wide variances in the level of automation associating to the "pick-pack-and-ship" process, ranging from completely manual and paper-driven to highly automated and completely mechanized; computer systems overseeing this process are generally referred to as Warehouse Management Systems or "WMS".

Process

Order processing is a sequential process involving:
The order picking or order preparation operation is one of a logistic warehouse's processes.
It consists in taking and collecting articles in a specified quantity before shipment to satisfy customers' orders.
It is a basic warehousing process and has an important influence on supply chain's productivity. This makes order picking one of the most controlled logistic processes.
It is one of the warehouse management system functions.

Picking Strategies

There are several different strategies for order picking, including:
Note that these strategies are not mutually exclusive to each other. For example, wave picking can used to batch picks which are then handled via zone or piece picking. A warehouse may also need to support alternate picking strategies due to physical layout or product distribution; for example, if some products are only sold by pallet and require special lifting equipment, those pallet-orders might be batched or processed differently that the rest of the products which might be piece-picked - alternatively, part of a warehouse might be automated with sorting systems while another part is not.

Piece Picking

Piece picking, also known as broken case picking or pick/pack operations, describes systems where individual items are picked. Operations using piece picking typically have a large stock keeping unit, or SKU, base in the thousands or tens of thousands of items, small quantities per pick, and short cycle times. Examples of piece pick operations include mail-order catalog companies and repair parts distributors.

Case Picking

Operations that use case picking tend to have less diversity in product characteristics than operations that use piece picking. There are typically fewer SKUs and higher picks per SKU.

Pallet Picking

Full-pallet picking, or unit-load picking, uses much simpler systematic methods than piece picking or case picking. However, there are many choices in storage equipment, storage configurations and types of lift trucks.

[|Sorting]

Sorting machines in distribution

Pick and pack

Pick and pack is a part of a complete supply chain management process that is commonly used in the retail distribution of goods. It entails processing small to large quantities of product, often truck or train loads and disassembling them, picking the relevant product for each destination and re-packaging with shipping label affixed and invoice included. Usual service includes obtaining a fair rate of shipping from common as well as expediting truck carriers.
Pick and Pack services are offered by many businesses that specialize in supply chain management solutions.
Case picking is the gathering of full cartons or boxes of product. This is often done on a pallet. In the consumer products industry, case picking large quantities of cartons is often an entry-level employee's task. There is, however, significant skill required to make a good pallet load of product. Key requirements are that cartons not be damaged, they make good use of the available cube and be quick to assemble.
Warehouse management system products create pick paths to minimize the travel distance of an order selector, but often neglect the need to maximize the use of cube, segregate products that should not touch or minimize damage.

Order Picking Technology

Order picking technology, such as pick-to-light, put-to-light, and pick-to-voice are widely known to improve picking accuracy and efficiency. These technologies can be fully integrated with a warehouse management system as well as RF scanners. Larger companies are experimenting with drones, robotics, virtual reality, and augmented reality, but these newer technologies are still too expensive for the average warehouse.

Factors

The specific "order fulfillment process" or the operational procedures of distribution centers are determined by many factors. Each distribution center has its own unique requirements or priorities. There is no "one size fits all" process that universally provides the most efficient operation. Some of the factors that determine the specific process flow of a distribution center are:
This list is only a small sample of factors that can influence the choice of a distribution center's operational procedures. Because each factor has varying importance in each organization the net effect is that each organization has unique processing requirements.
The effect of Globalization has immense impacts on much of the order fulfillment but its impact is felt mostly in transportation and distribution.