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 fulfillment (in British English: order fulfilment) is in the most general sense the complete process from point of sales inquiry to delivery of a product to the customer. Sometimes, it describes the more narrow act of distribution or the ...

. 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

Forklift AGV with Straddle, courtesy of Egemin Automation Inc

Bundesarchiv Bild 183-22350-0001, Berlin, Postamt O 17, Päckchenverteilung

Order processing is a sequential process involving:D.F. Bozutti, M.A. Bueno-Da-Costa, R. Ruggeri, Logística: Visão Global e Picking, EdUFSCar 2010 * Picking: consists in taking and collecting articles in a specified quantity before shipment to satisfy customers' orders. * Sorting: process that separates items according to destination. *Pre-consolidation or package formation: includes weighting,

labeling Labelling or using a label is describing someone or something in a word or short phrase. For example, the label "criminal" may be used to describe someone who has broken a law. Labelling theory is a theory in sociology which ascribes labelling ...

and packing. *Consolidation: gathering packages into loading units for transportation, control and

bill of lading A bill of lading () (sometimes abbreviated as B/L or BOL) is a document issued by a carrier (or their agent) to acknowledge receipt of cargo for shipment. Although the term historically related only to carriage by sea, a bill of lading may toda ...

Picking

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 logistic processes. It is one of the warehouse management system functions.

Picking Strategies

There are several different strategies for order picking, including: * piece 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 centres 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. * zone 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 the two picks are collated. * batch 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. *wave 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. * sorting 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 ...). * pick 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" 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 in the warehouse with the correct boxes already in hand. 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 A label (as distinct from signage) is a piece of paper, plastic film, cloth, metal, or other material affixed to a container or product, on which is written or printed information or symbols about the product or item. Information printed ...

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 (space) 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.

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 Productivity is the efficiency of production of goods or services expressed by some measure. Measurements of productivity are often expressed as a ratio of an aggregate output to a single input or an aggregate input used in a production proces ...

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 In time series data, seasonality is the presence of variations that occur at specific regular intervals less than a year, such as weekly, monthly, or quarterly. Seasonality may be caused by various factors, such as weather, vacation, and holidays a ...

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

Globalization Globalization, or globalisation (English in the Commonwealth of Nations, Commonwealth English; American and British English spelling differences#-ise, -ize (-isation, -ization), see spelling differences), is the process of foreign relation ...

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

References

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