Order processing: Difference between revisions

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{{Short description|Work-flow to fulfil an order}}

{{Business logistics}}

'''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 center]]s"s” or "DC“DC 's"s”. There are wide variances in the level of automation associating to the "pick“pick-pack-and-ship"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 system|Warehouse Management Systems]] or "WMS"“WMS”.

==Process==

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*[[#Picking|Picking]]: consists in taking and collecting articles in a specified quantity before shipment to satisfy customers' orders.

*[[#Sorting|Sorting]]: process that separates items according to destination.

*Pre-consolidation or package formation: includes [[Weighting|weighting]], [[Packaging and labeling|labeling]] and [[Packaging and labeling|packing]].

*Consolidation: gathering packages into [[unit load|loading units]] for transportation, control and [[bill of lading]].

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[[Image:Sistema de preparación de pedidos pick to light.jpg|thumb|Person to goods picking assisted by conveyor belt]]

The '''orderOrder picking''' or order preparation operation is one of a logistic warehouse's processes.<ref>{{cite webcn|url=http://www.inventoryops.com/order_picking.htm|title= Order Picking: Methods and Equipment for Piece Pick, Case Pick, and Pallet Pick Operations|last=Piasecki|first=Dave|publisher=InventoryOps.com|access-date=8 DecemberSeptember 20122023}}</ref>

It consists in taking and collecting articles in a specified quantity before shipment to satisfyfulfil customers'customer orders.

It is a basic warehousing process and has an important influence on logistic processes.{{cn|date=September 2023}}

It is one of the [[warehouse management system]] functions.

===Picking Strategies===

There are several different strategies for order picking, including:

* '''[[#Piece Picking|piecePiece picking]] or picker to part method''': the order picker(s) move(s) to collect the products necessary for one order. This is commonly seen in distribution centrescenters for retail chains, whereby a shop will require a great many replenishment goods. A picker may pick all or part of the replenishment for one shop.

* '''zoneZone picking method''': each order picker is assigned to one specific zone and will only realize order picking within this zone. For instance, in an electrical retail environment, both small and large items may be required and a picker on an electric vehicle such as a powered pallet truck (PPT) or an order picker vehicle may pick large and heavy items whereas a foot picker may pick small and light ones from another part of the warehouse. Eventually theThe two picks are eventually collated.

* '''batchBatch picking method''': order pickers move to collect the products necessary for several separate orders at one time through the most efficient route in the warehouse.

*'''waveWave picking method''': [[Wave picking]] is the combination of zone and batch picking, where batches of orders are passed from picker to picker through separate zones.{{cncitation needed|date=October 2020}}

* '''sortingSorting systems method''': no movement of the order picker(s), the products are brought to her or him by an automatic system ([[conveyor system]], automatic storage ...).

* '''pickPick to box method''': same strategy as piece picking above, but when product is picked, it is placed directly into a mailing-ready container, removing the need for any interim repackaging for mailing / transit purposes. This method requires what is sometimes referred to as a "cartonization"“cartonization” step, where the warehouse management system (WMS) figures out before the pick is started how many boxes will be required (and what size) so that the picker goes out into the warehouse with the correct boxes already in hand. <ref>{{Cite web|url=http://wms.com.es/picking-carritos-de-recogida.html|title=Pick to box procedures|website=wms.com.es|access-date=2017-08-04}}</ref>

Note that these strategies are not mutually exclusive to each other. For example, wave picking can be 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. <ref name=":0">{{cite web|url=http://www.inventoryops.com/order_picking.htm | last=Piasecki | first=Dave | title=Order Picking: Methods and Equipment for Piece Pick, Case Pick, and Pallet Pick Operations | publisher= Inventory Ops Consultation | year=2012 | access-date=1 May 2015}}</ref>

===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. <ref name=":0" />

===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. <ref name=":0" />

==Sorting ==

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==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 oftenfrequently 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 (space) and be quick to assemble.

[[Warehouse management system]] products create pick paths to minimize the travel distance of an order selector, but oftentypically neglect the need to maximize the use of cube, segregate products that should not touch or minimize damage.

==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:

* The nature of the shipped product -— shipping eggs and shipping shirts can require differing fulfillment processes

* The nature of the orders -— the number of differing items and quantities of each item in orders

* The nature of the shipping packaging -— cases, totes, envelopes, pallets can create process variations

* Shipping costs -— consolidation of orders, shipping pre-sort can change processing operations

* Availability and cost and [[productivity]] of workforce -— can create trade-off decisions in automation and manual processing operations

* [[Timeliness]] of shipment windows -— when shipments need to be completed based on carriers can create processing variations

* Availability of capital expenditure dollars -— influence on manual versus automated process decisions and longer-term benefits

* Value of product shipped -— the ratio of the value of the shipped product and the order fulfillment cost

* [[Seasonality]] variations in outbound volume -— amount and duration of seasonal peaks and valleys of outbound volume

* Predictability of future volume, product, and order profiles

* Predictability of distribution network -— whether or not the network itself is going to change

* Presence of small volume distribution

* Minimization of shipping costs

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 [[Globalizationglobalization]] has immense impacts on much of the order fulfillment, but its impact is felt mostly in transportation and distribution.

== See also ==