Order fulfillment is the backbone of any eCommerce operation. As a smart eCommerce business owner, you must know that pick and pack process is the cornerstone of any fulfillment center. That said, more than half of the warehouse operation costs go to picking and packing services. The accuracy and efficiency of this preliminary stage directly impact customer satisfaction, retention, and overall business success. With the rise of the eCommerce industry, the demand for seamless pick and pack services has never been higher. Implementing strategies that help to improve and optimize this process is the key to keeping your online sales thriving.
What is the Pick and Pack Process in Order Management?
The order fulfillment process starts with picking and packing the ordered products at a warehouse. Delivering the right products to customers faster and without cutting profit margins often depends on this process.
Here’s a detailed look at the key stages involved in the pick and pack process:
1. Order Retrieval:
The process begins with the retrieval of customer orders from the online portal or order management system. Orders are grouped and prioritized based on factors such as shipping method, location, and urgency.
2. Product Picking:
Once orders are retrieved, warehouse staff proceed to pick up the products from designated storage locations within the warehouse. This may involve using handheld devices or pick lists to locate and gather the items required for each order.
Note: Searching for a product takes 15% of the warehouse operator’s time in the picking and packing process.
3. Quantity Verification:
After picking the products, staff verify the quantity of each item to ensure it matches the quantity specified in the order. This step helps prevent errors and inaccuracies in the fulfillment process.
4. Packing:
Once the products are picked and verified, they are packed securely into shipping containers or packages. Packaging materials such as boxes, bubble wrap, and packing peanuts are used to protect the items during transit.
5. Labeling:
Each package is labeled with the necessary shipping information, including the recipient’s address, shipping method, and tracking number. Proper labeling ensures that packages are delivered to the correct destination and can be tracked throughout the shipping process.
6. Quality Check:
Before shipping, packages undergo a final quality check to ensure that all items are correctly packed, undamaged, and ready for shipment. Any discrepancies or issues are addressed promptly to maintain high-quality standards.
7. Shipping and Updating the Online Portal with Documentation:
Once packages pass the quality check, they are shipped using the selected shipping method. Tracking information is updated in the online portal or order management system, allowing customers to track their orders in real time. Pick and pack logistics are completed with the documentation such as shipping labels and invoices for record-keeping purposes.
6 Simple Ways for Optimizing Your Pick and Pack Processes for Efficient Order Fulfillment
Here’s a brief overview of strategies that you must implement to make your warehouse services more efficient without cutting your profit margins:
1. Warehouse Layout and Organization:
The layout of your distribution warehouse plays a significant role in efficiency. Logically organize your inventory, grouping similar items to minimize travel time for operators. Utilizing shelving, racks, and bins will help you maximize the space and accessibility of your warehouse.
2. Utilize Technology:
Integrating technology to streamline your pick and pack processes. Implement barcode scanning and RFID systems to track inventory and reduce picking errors accurately. Investing in reliable warehouse management software (WMS) is highly imperative if you are scaling your eCommerce business. It helps to optimize order routing, prioritize tasks, and provide real-time visibility into your operations.
3. Implement Efficient Workflows:
Develop standardized workflows and procedures for picking, packing, and shipping orders. Train your staff thoroughly to ensure they understand the processes and can execute them efficiently. Continuously evaluate and refine your workflows to eliminate bottlenecks and improve productivity.
Read Also: Harmonized System (HS) Codes Explained: The Big Role of These Small Identifiers
4. Batch or Zone Picking:
According to a report by Georgia Tech Supply Chain and Logistics, traveling to find the product takes 55% of the warehouse operator’s time. That said, implementing batch picking and zone picking can streamline the process by consolidating orders & dividing the warehouse into designated zones. Batch picking reduces trips within the warehouse by picking multiple orders at once, while zone picking assigns specific areas to each picker for parallel picking. These strategies minimize travel time, boost productivity, and optimize efficiency in order fulfillment.
5. Quality Control:
To ensure accuracy and prevent errors, it is imperative to integrate rigorous quality check measures for your pick and pack services. Conducting regular audits of picked orders helps you address issues promptly.
According to a report by Meteorspace, 18.1% is the average eCommerce store return rate. By maintaining high-quality standards, you can minimize returns and enhance customer satisfaction. Keeping your return rate less than 10% is the benchmark you must aim for by partnering with a reliable eCommerce fulfillment center.
6. Keep your Inventory Up to Date:
To keep your picking and packing process up and running, you must always keep your inventory up to date. Your inventory should always restock the products to avoid delays in order fulfillment. A small delay can cost you the loss of a customer for a lifetime.
Note: Always keep track of out-of-stock or the most purchased products to have an accurate inventory system.
Benefits of Streamlining Your Pick and Pack Operations
Here’s a list of benefits that come with implementing the above strategies and optimizing your pick and process in order fulfillment:
- Increased Efficiency: By optimizing workflows and implementing technology solutions, you can reduce order processing times and handle a higher volume of orders with fewer resources.
- Improved Accuracy: Standardized processes and quality control measures minimize errors and ensure that orders are picked, packed, and shipped accurately, leading to greater customer satisfaction and fewer returns.
- Reduced Labor Costs: With pick and pack services carried out efficiently, you need less manual labor. This leads to cost savings and improved profitability for your business.
- Enhanced Warehouse Productivity: Using the right warehouse equipment helps in maximizing the warehouse space. Also, implementing the right kind of picking technique helps you to improve the overall productivity of your warehouse services.
- Faster Order Fulfillment: Streamlined operations enable you to fulfill orders more quickly, reducing delivery times and meeting customer expectations for fast and reliable service.
- Real-time Visibility: Incorporating proprietary software provides real-time visibility into inventory levels, order statuses, and shipping updates. Such advanced technologies allow you to make informed decisions and respond promptly to customer inquiries.
- Scalability: Failing to plan your fulfillment strategy is failing to scale your eCommerce business. When you have optimized warehouse operations, you seamlessly expand your eCommerce business globally and handle increasing order volumes efficiently.
Read Also: How To Reduce Shipping Costs by Partnering with an eCommerce Fulfillment Provider or 3PL?
Wrap Up
Optimizing your pick and pack services is essential for maintaining a competitive edge in the eCommerce industry. Implement the best practices outlined in this blog post, to improve accuracy and enhance customer satisfaction. Achieving optimal efficiency requires strategic planning, advanced technology, and operational excellence. This comes by partnering with the right distribution and fulfillment center.
Connect with Shiptop for Optimized Pick and Pack Services
When you’re ready to take your operations to the next level, consider partnering with Shiptop for industry-leading pick and pack services tailored to your specific requirements. With Shiptop’s strategically positioned warehouse services in Toronto, Vancouver and the United States, your fulfillment needs are met accurately.
Connect with Shiptop today to learn more about how we can help optimize your pick and pack services for success. Get in touch with us to discuss your project and fulfillment strategy tailored to your business needs. Request a quote today.